Missed selling APTT at higher price.

Hi Mr. AK,

I like when you say all investments are good at the right price.

I also follow you to buy APTT when it was 38c. Thank you.






I just found out you sold end of last month. The price now 43c.

I missed the chance to sell at 49.5c. Do you think I should sell at 43c?






I am not blaming you but I only read your blogs on stocks.

I missed the sell on APTT at high price because it was not not in the blog title.








Hi LK,

Welcome to my blog.

If you like Peter Lynch's famous saying, you should first learn to tell the difference between price and value. 

You could start by reading some books: HERE.





Read that blog post of mine again to learn why did I choose to sell and not hold on to APTT for dividends. 

Note that although the investment gave me a very nice 32% capital gain, that was not the main reason for selling.






As for being less than organised in my blog, I am a mental blogger. Sometimes, I confuse even myself. 

A thousand apologies.

Best wishes,
AK

Related post:
The reader was referring to this blog:
My savings accounts, recent money flow and investments.

AIMS AMP Capital Industrial REIT levels up.

UPDATED JULY 2018

DPU of 2.5c declared for quarter ending June 2018 to be paid on 20 Sep 18.

Refinancing in July 2018, weighted average debt maturity lengthened to 3.1 year, with interest savings of about $0.7 million per annum.

88.1% of interest rate fixed with interest rate swaps and fixed rate notes.

Overall blended funding cost of 3.8%





..........
AIMS AMP Capital Industrial REIT (AA REIT) is probably one of the better run REITs in Singapore, creating value for unit holders in a sustainable manner and their recent action reaffirms my view.





Most REITs are leveraged to some degree. Although leverage could magnify gains, in an environment of lacklustre growth and rising interest rates, too much leverage could spell trouble.


I remember putting forth my concern on rising interest rate to AA REIT's CEO when I was invited to tour some of the REIT's properties. 

I wondered if it was possible to issue longer term bonds to lock in lower interest rates.






Mr. Koh Wee Lih told me that issuing longer term bonds could mean paying a higher coupon which made perfect sense, of course. 

So, if AA REIT should be able to issue bonds without shortening their tenors and enjoy paying lower coupons, what does that tell us?





AIMS AMP Capital Industrial REIT (AA REIT) announced it will be issuing S$50 million Fixed Rate Notes as part of its Medium Term Notes (MTN) Programme.

The 5-year Notes will bear interest at a fixed rate of 3.60 per cent per annum payable semi-annually in arrear, until maturity on 22 March 2022. The Notes are expected to be issued on 22 March 2017.

“The net proceeds from the issue will be used to partially repay the revolving credit facility due in November 2017 which was used to fund ongoing developments. This also enables us to diversify our funding sources and free up more undrawn available facilities for potential further growth.”

This is the fourth time the Manager has used its MTN programme to raise debt. 

AA REIT raised S$100 million with the four-year 4.90 per cent Fixed Rate Notes issue in August 2012 , S$30 million with the seven-year 4.35 per cent Fixed Rate Notes issue in December 2012 and S$50 million with the five-year 3.80 per cent Fixed Notes bond issue in May 2014. 

Mr. Market demands higher returns for junk bonds but accepts lower returns from investment grade bonds. 

I like the direction AA REIT is heading. Good job!





Related post:
A tour of AA REIT's properties.

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.