Reader:
Frasers Hospitality Trust. I like this and invested in it last year and applied for excess rights.
I find FHT attractive because mostly freehold and spread across many countries. Yield is 7%+. Plus strong sponsor and brand name.
I am not good in analysing. Hope you will talk to yourself. :)
AK:
I don't like it when a REIT purchases properties and DPU goes down.
And the rights issue was in part to strengthen balance sheet which did nothing to improve DPU.
"The issue would also reduce FHT's debt levels and strengthen its balance sheet."
http://www.straitstimes.com/business/companies-markets/frasers-hospitality-trust-to-raise-266m-in-rights-issue
I don't like it when total distributable income goes up but DPU goes down.
"Distribution income for the quarter was up 3.1 per cent year-on-year... DPS in the three months as at end December 2016 was down 18.9 per cent year-on-year..."
http://www.businesstimes.com.sg/companies-markets/frasers-hospitality-trusts-dps-down-on-enlarged-stapled-security-base
As a shareholder, I should be very interested in what happens to the DPU. I feel that the shareholders could have been better off without the rights issue.
There are probably things to consider beyond that but my plate is full. ;)
Related post:
REITs and rights issue.
FAKE ASSI AK71 IN HWZ.
Featured blog.
1M50 CPF millionaire in 2021!
Ever since the CPFB introduced a colorful pie chart of our CPF savings a few years ago, I would look forward to mine every year like a teena...
"E-book" by AK
Second "e-book".
Another free "e-book".
4th free "e-book".
Financially free and Facebook free!
Subscribe To ASSI
Posts
Comments
Monthly Popular Blog Posts
-
It has been almost a month since my last blog post. I am serious about becoming more laid back and being less active in social media. The ga...
-
For those of you who follow me in my YouTube channel, you would know that something unfortunate happened recently to my father. So, I expect...
-
With DBS, OCBC and UOB doing so well in 3Q 2024, I had to take time off from gaming to produce a series of videos. For those of you who do n...
-
I didn't think there would be another blog post until the new year but I did something just now which would have surprised myself a few ...
-
In recent times, I have found it much easier to talk to myself on YouTube. It is faster than blogging. This explains the greater number of v...
All time ASSI most popular!
-
A reader pointed me to a thread in HWZ Forum which discussed about my CPF savings being more than $800K. He wanted to clarify certain que... -
The plan was to blog about this together with my quarterly passive income report (4Q 2018) but I decided to take some time off from Neverwin...
-
Reader says... AK sifu.. Wah next year MA up to 57200... Excited siah.. Can top up again to get tax relief. Can I ask u if the i...
-
It has been a pretty long break since my last blog. I have also been spending a lot less time engaging readers both in my blog and on Face...
-
I thought of not blogging about my 2Q 2020 passive income till a couple of weeks later because Mod 19 of Neverwinter, Avernus, just went liv...
Bloggy Award
3 comments:
Hi, thanks for sharing and talking to yourself. I have learn a lot from you.
Since we are on right issues topic, there is another one that was announced last week, being the CDL Hosp Trust.
The DPS will fall from 10 cents to 9.43 and the DPS yield will reduce from 5.95% to 5.85% after acquisition and rights issue. Wondering which action I should take since i am a shareholder.
Hope you can talk to yourself about it if possible.
Thanks.
Hi, thanks for sharing and talking to yourself and I have learned a lot from you.
Since we are on the topic of rights issue, CDL Hosp Trust has also announced one last week.
I am a shareholder and am deciding what is the best action.
The DPS will fall from 10 cents to 9.43 cents and the DPS yield will fall 5.95% to 5.85% after acquisition and rights issue.
Hope you can talk to yourself on this if possible. Thanks.
Hi nch,
In a nutshell, I don't like rights issues which are to fund activities which are not DPU nor yield accretive, all else being equal.
For those who are vested, they have to make a judgement call on whether the investment concerned could see performance improve in time to come.
Post a Comment