Ascott REIT's mega discounted rights issue.

Hi AK

With the recent rights issue of Ascott reit, i read that the DPU and NAV per unit will most likely drop after this event.

Can you share your thoughts about this(the reason for this rights issue)?

Declining DPU. Source: HERE.

Hi AY,
I don't like Ascott Residence Trust. I don't have this.
They are always raising funds but I don't see performance improving.
If you want to read more about rights issue, here are some of my blogs you might be interested in:
1. http://singaporeanstocksinvestor.blogspot.sg/2011/10/reits-and-rights-issues-dilutive-or-not.html
2. http://singaporeanstocksinvestor.blogspot.sg/2010/09/reits-simply-explained.html
3. http://singaporeanstocksinvestor.blogspot.sg/2011/11/reits-and-rights-issues-singaporean.html

I feel that unit holders would have been better off without the acquisitions and the mega rights issue.

Reference:
"Ascott Reit unit holders will have the option of purchasing up to 481.7 million rights units at a ratio of 29 rights units for every 100 units they own. The rights units will be issued at 91.9 cents - a 21.5 per cent discount to the closing price of $1.17 per unit on Monday. Ascott Reit expects yields of up to 4.5 per cent for the acquisition of AOS and 5.4 per cent for the German properties." Source: The Straits Times, 8 March 2017.

AK the born again teacher or a mental blogger?

Reader:
I chanced upon your blog half a year ago and been following your every entry since then. In my free time, i try to read up your entries to get a grasp of what we can do to improve our wealth and be financially independent.

Articles such as contribution to CPF SA holds dearly to my heart as it means the earlier we transfer from OA (of course living a portion for hdb flat payment) to SA and cash top up (tax rebate) the more we can enjoy the compounding interest and what we will receive from our retirement in the future.


I also benefited from your lucky 4 numbers and won a little fortune. Thank you.





Your insight into shares also led me to buy shares which I wasn't aware of. I assume I am too lazy to read up on Financial news.


Thanks for talking to yourself every now and then.


When you talk to yourself, it's like a teacher giving a lecture to his students. Valuable advice which will benefit us. But at the same time in no way should we blindly always follow what you do. Rather having an opinion of our own and then making own decision based on our analysis should be the way to go

Please continue doing what you do best as what you are doing will inspire us to be better in being financially independent and gain more knowledge in financial knowledge.


Your sincerely
K

AK: Alamak. I am only talking to myself... OK, I am delivering a lecture to myself. ;)

On a serious note, I like helping people to help themselves. So, I am glad if talking to myself has achieved this.

However, not for the first time, I have been made aware that my blogs could also have caused harm. See comments: HERE.

It was followed by a chat I had soon after with a blogger:

However, given the overwhelmingly positive messages I received from readers when I shared my thoughts on my FB wall, I guess I will keep blogging, keeping the status quo.

Although I won't stop blogging anytime soon, I might slow down from time to time.

I want to avoid the feeling that blogging is a full time job. Blogging should always be a hobby to me.

Even if I do stop blogging one day, my blog is still here. So, you are never alone on the journey to financial freedom.




Be good. Be prudent. Be pragmatic. Be patient. We will do well enough.

If AK can do it, so can you!

Related post:
How did AK achieve financial freedom?