CapitaMalls Asia: Interim dividend of 1.625c per share.

Hurrah!

CapitaMalls Asia posted profit after tax and minority interests (PATMI) of $232 million for 2Q 2012, an increase of 40.7% from the $164.9 million for 2Q 2011.

Earnings before interest and tax (EBIT) were $283.8 million for 2Q 2012, 33.4% higher than the $212.8 million for 2Q 2011.

CapitaMalls Asia has declared an interim dividend of 1.625 cents each.

CapitaMalls Asia’s 2Q earnings up 40.7% to $232m
Thursday, 26 July 2012

© 2012 - The Edge Singapore

Cache Logistics Trust: 2Q 2012's DPU down 5%.

A drop in DPU? Yes, that is right. From 2.086c in the last distribution to 1.981c this time round.

This is due mainly to a private placement of 60 million units in March this year. This is an important reason why I prefer a rights issue to a private placement.

With a rights issue, all unitholders are given a chance to participate in the enlarged capital base of the REIT. With a private placement, retail investors are usually disadvantaged.

Although the DPU might still fall 5% if the REIT had a rights issue instead of a private placement, at least all unitholders would have had a chance to buy new units at a discount which would mean the distribution yields on their investments would be less affected negatively, if at all. Unitholders would also be able to benefit from the price appreciation of the rights units.

Well, it remains to be seen if the management is able to improve DPU in the coming quarters, raising it to the level before the private placement in March.

NAV/unit: 90c.
Gearing: 27.5%.
Interest cover ratio: 7.5x.

With gearing lower at 27.5%, new acquisitions could be in the pipeline.

See presentation slides: here.

Related post:
Cache Logistics Trust: 1Q 2012.