Money from RHT Health Trust past and future. (We are responsible for our own financial future.)

I want to share an interesting video before starting on the blog proper.

There is a lot of wisdom in this 5 minutes video clip and, unless we are born with a spoon made of some precious metal in our mouth, everyone, especially the young, should watch it.

1. Delay gratification (i.e. discretionary consumption),

2. understand the danger of taking on too much debt,

3. save money (that is what 401K means in USA and, for us, it would be the CPF and SRS),

4. start investing early,

5. let time and compound interest work their magic!

We are responsible for our own financial future.






This blog is in response to a recent comment from a reader:

AK says...

Hi Ruby,

For RHT, I believe that it will become a shell company just like what happened to Saizen REIT after they sold their portfolio of assets, if you remember.

RHT's shareholders will receive the bulk of the proceeds from the sale of the Trust's assets but RHT would still be around.






In the case of Saizen REIT, it was finally liquidated and any remaining money was distributed to shareholders.

It could happen to RHT in future or it might not.

Just have to wait and see.

But this deal really helps to crystalise for RHT shareholders on what each unit in RHT is worth.

So, if readers bought into RHT like I did in more recent times at 72c per unit thereabouts, they will be OK.





We should also bear in mind that there is still residual value after the proposed special dividend to be paid to shareholders.

What about investors who got in earlier?

Well, I expect that their investment in RHT would have done quite well.

Of course, you would remember that I first bought into RHT at 88c a unit back in August 2015.






That earlier investment has received income distributions over the years and also a special dividend of about 25c per unit in 2016.

We booked a very nice capital gain back then.

This time, an estimated 76.6c per unit will be distributed.

If not for the rather weak Indian Rupee, the number would be higher.

Without taking into consideration the regular periodic income distributions received in the past, the two special distributions together amount to more than a dollar per unit.

Like before, there is capital gain for us in this proposed special distribution but it would also include the return of our investment capital.

The returns are not stellar like in the case of Saizen REIT or Croesus Retail Trust, but, the outcome is not a bad one.

Investing in good income generating assets is comforting because our investments should become safer over time.






Related post:
1. Increased investment in RHT (Early 2017).
2. Initiated position in RHT at 88c (2015).
See announcement by RHT:
Disposal of assets.