PRIVACY POLICY

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Monday, January 29, 2018

Merger of ESR-REIT and VIVA Industrial Trust.

I have more than a handful of relatively small investments (i.e. anything smaller than $100,000 and usually smaller than $50,000 in size).

Some of them are legacy investments (i.e. leftovers from many years ago after selling off most of the investments) and ESR-REIT (formerly Cambridge Industrial Trust) was one of them.






The last time I blogged about this REIT was in June 2016.

 Back then, I added to my investment in the REIT at 52.5 cents a piece.

 After adding to my investment, still, it remained a smallish investment and I explained why in related post #1 at the end of this blog.






Well, I have decided to let go of my investment in the REIT.

 Why?

 Regular readers know that I have concerns about VIVA Industrial REIT. See related post #2 at the end of this blog.

I am uncomfortable that ESR-REIT and VIVA Industrial REIT are talking about merging.

 I have enjoyed many years of income distributions and I will also enjoy a capital gain from the divestment.

So, everything taken into consideration, it is not a bad outcome.






This reminds me of the time when I let go of K-Green Trust (KGT) in 2014 when it was decided that they would merge with CitySpring Infrastructure Trust.

 I didn't like CitySpring. 

 What to do?

I cut KGT loose. See related post #3 at the end of this blog.




With this move, my total investment in REITs shrinks again and, everything else being equal, so will the income distributions I will be receiving from REITs this year.

 Read:
ESR-REIT and VIVA in merger talks.

 Related posts:
1. Cambridge Industrial Trust (June 2016).
2. VIVA Industrial REIT's short land leases.
3. KGT and CitySprings' unequal marriage.
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10 comments:

  1. laurenceJanuary 29, 2018 at 2:56 PM

    I'm sure invested readers are all scrambling for the exit doors at ........... about now.
    Especially your posts appear in other investment sites as well.

    ReplyDelete
  2. cskyJanuary 30, 2018 at 11:45 AM

    Hi AK,

    How do you get updated with the news of the different counters so promptly? Is there some news service or email service out there that one can use?

    Thanks!
    csky

    ReplyDelete
  3. AK71January 30, 2018 at 11:58 AM

    Hi Laurence,

    When readers hear me talking to myself, they should suspect that I am a nutcase.

    When I see a crazy person muttering to himself, I make a detour.

    ReplyDelete
  4. AK71January 30, 2018 at 11:59 AM

    Hi csky,

    I read the newspapers mostly.

    Once a week, I read The EDGE.

    I very old school one lah except that I also read the news online these days. :)

    ReplyDelete
  5. cskyJanuary 31, 2018 at 1:03 AM

    Arh okie! Business Times or ST? I am still wondering if I should invest in BT ...

    Actually I also find hardcopy materials easier to read and absorb than stuff on the screen :)

    ReplyDelete
  6. AK71January 31, 2018 at 10:24 AM

    Hi csky,

    I like The Business Times and I also prefer hard copies.

    I am a dinosaur. ;p

    ReplyDelete
  7. JLMay 21, 2018 at 11:32 PM

    Hi Sensei AK
    I like your analysis on the merger when you own-self talk to own-self. I'm also skeptical about the merger, mostly because the issuing of new units will dilute existing ESR holders. Although the media and various platforms seem to be bullish about the merger, today ESR prices have tanked (after the trading halt has been lifted). So, from your experience, I'd like to ask if you can talk to yourself again and ask if the world has gone crazy. thanks ah, Sensei AK...

    best rgds
    JL

    ReplyDelete
  8. JLMay 21, 2018 at 11:32 PM

    Hi Sensei AK
    I like your analysis on the merger when you own-self talk to own-self. I'm also skeptical about the merger, mostly because the issuing of new units will dilute existing ESR holders. Although the media and various platforms seem to be bullish about the merger, today ESR prices have tanked (after the trading halt has been lifted). So, from your experience, I'd like to ask if you can talk to yourself again and ask if the world has gone crazy. I'm invested in ESR btw...

    thanks ah, Sensei AK...

    best rgds
    JL

    ReplyDelete
  9. AK71May 21, 2018 at 11:40 PM

    Hi JL,

    Alamak... :(

    You are asking a crazy man to comment on whether the world has gone crazy? -.-"

    You must be crazy too. ;p

    ReplyDelete
  10. AK71June 8, 2018 at 12:17 PM

    See also:
    When would I invest in ESR-REIT again?

    ReplyDelete