CCT will be having its rights issue to partially fund a 2bil prime ppty in the marina district.
likely i would be subscribing to it, to get exposure to such prime property.
CCT being a reit, has little other option but to have a rights issue to fund such a huge purchase when this opportunity presents. the full positive effects of this might need a few years to take place, something which i think is acceptable to a lot of long term investors like myself. it is still one of the few reits in singapore which is trading below its book.
The rights amount would be slightly less than one tenth of my overall dividend for the year, so this would not have such a great impact and CCT currently occupies about 4% of my portfolio.
Imagine if CCT would occupy say 20% of the portfolio, then probably one has to ponder and ponder about what to do with this rights issue.
my options are still open even after subscribing to it. at 1.363 per new share, it probably won't be long before i can sell it for a profit, should i decide to. so long as the overall counter is still comfortably within my prescribed limit, i think i am fine holding it and milking this cow to feed other cows in my garden.
likely i would be subscribing to it, to get exposure to such prime property.
CCT being a reit, has little other option but to have a rights issue to fund such a huge purchase when this opportunity presents. the full positive effects of this might need a few years to take place, something which i think is acceptable to a lot of long term investors like myself. it is still one of the few reits in singapore which is trading below its book.
The rights amount would be slightly less than one tenth of my overall dividend for the year, so this would not have such a great impact and CCT currently occupies about 4% of my portfolio.
Imagine if CCT would occupy say 20% of the portfolio, then probably one has to ponder and ponder about what to do with this rights issue.
my options are still open even after subscribing to it. at 1.363 per new share, it probably won't be long before i can sell it for a profit, should i decide to. so long as the overall counter is still comfortably within my prescribed limit, i think i am fine holding it and milking this cow to feed other cows in my garden.
Paul, I believe both the acquisition of Asia tower and rights issue result in diluting DPU, although not significant. The net yield from Asia Tower is pegged at 3.6% with an occupancy rate of 89%, making it non-accretive given the high DPU that CCT pays now. In the market conditions right now, anything is taken positive and the price of securities keeps moving up.
ReplyDeleteur point is very valid
ReplyDeletethanks for your comments