First REIT: Excess rights allotment.

On 29 Dec, I blogged about how First REIT's rights issue was a resounding success.  From the comments and emails so far, it seems that First REIT favours smaller investors for this rights issue.

See comments in the blog post here.

I have arrived at the following hypothesis based on the data collected so far:

1.  Entitled rights: 5,000 to 8,750,
excess rights allotted: 1,000.

2.  Entitled rights: 10,000 to 38,750,
excess rights allotted: 2,000.

3.  Entitled rights: 40,000 to 98,750,
excess rights allotted: 3,000.

4.  Entitled rights: 100,000 to ???,???,
excess rights allotted: 4,000.

I don't have data for entitled rights below 5,000 and beyond 100,000.

Of course, holders of odd lots would have the advantage of rounding up odd lots, be it 250, 500 or 750 units. These would add to the excess rights allotted.

I welcome more comments and feedback on whether my hypothesis is correct. Congratulations to fellow First REIT unitholders successful in getting excess rights.

SINGAPORE : Singapore's healthcare real estate investment trust First REIT on Friday said it has completed the acquisition of two Jakarta hospitals.

The two new Indonesian healthcare properties include the Mochtar Riady Comprehensive Cancer Centre as well as Siloam Hospitals Lippo Cikarang, a six-storey hospital that began operations in 2002.

With these acquisitions, First REIT said it has crossed a significant milestone as its assets under management have almost doubled to S$612.8 million as at December 31.

The trust's manager revealed that it aims to achieve a portfolio size of S$1 billion in two to three years...

...Meanwhile, the manager of First REIT revealed that based on projection year 2011, the trust's gearing level will stand at about 17 per cent, which is significantly lower than the regulatory limit of 35 per cent.

The manager of the trust added that this will provide it with sufficient headroom for future accretive acquisitions, and it will continue to look out for other healthcare-related assets in Asia to further raise its asset base. 

Complete article here.

FSL Trust: Sold some at 47c.

I shared on 21 Dec that I had an eventual target of 47c for FSL Trust, saying that it would close the gap at 46c which it did on 23 Dec. Gap resistance was later taken out on 29 Dec. As price opened at 47c today, my overnight sell queue was partially filled. Could we see the 21 Oct high of 48.5c tested next?

With the MFI and RSI both in overbought regions, further upside from the current level could prove difficult. Although momentum is clearly positive as suggested by the rising MACD in positive territory, the light trading volumes as price rose suggest a lack of sellers and not an abundance of buyers. Sustainability is in question.

In a benign situation, I expect gap resistance at 46c to become support in the near term. This is further strengthened by the uptrend support line. Technically, the worst seems to be over for FSL Trust and a retest of resistance at 48.5c looks likely in time.

Related post:
FSL Trust: Closing the gap soon?