Reasons why we should hold on to SG REIT for Long Play

Macro Trend Factors Unprecedented liquidity driving asset reflation. Dollar uncertainty driving flight to real assets instead of fiat money. Commodities increasingly becoming stored monetary unit of value driving inflation (ie. China) Low interest rates setting stage for next property boom. Targeted inflation as de facto hidden tax. (Politically desired) Local Trend Factors (Singapore) New Population … Read more

Positive on Cambridge – Accumulate and Go for Long

Short-Term TP $0.49, Long-Term TP $0.73 Alternative: Keep for Cashflow Yield and as Inflation Hedge Refer to attached picture – News announcement 06 June 2009. (Courtesy to Business Times) 1. Management commitment not to issue rights. “We don’t believe that going out and doing a highly dilutive rights issue is in the interest of the … Read more

S-REIT: Moody’s Kathleen Lee Blind spot

Mental Distinction SREIT may Fail = YES SREIT may Bankrupt = NO Definition of Bankrupt: Adjudged insolvent by Court Definition of Insolvent Unable to satisfy creditors or discharge liabilities, either because liabilities exceed assets or because of inability to pay debts as they mature. Scenario-based Outlook Scenario Outcome Explanation SREIT fail Favorable Disposal of property … Read more

S-REIT: Rights Issue Concerns

“ARA Strategic Capital’s chief executive officer Stephen Finch said shares of some REITs have already dropped so much during the market slump, a rights issue wouldn’t be a viable option.” Recent Rights Issue Discount Rights Offer Price Previous Closing Price Entitlement DBS 45% S$5.42 $9.85 1 for 2 Standard Chartered 48% 390 Pence 759 Pence … Read more

Regarding CMT Rights for Existing CMT holders

Sell‘ is a unpopular word as it often meant realized losses. Here’s a mental trick to try. Instead of ‘Sell‘, substitute the word with ‘Change Submarine‘ Question: Should I take up CMT $0.82 rights? Answer: In my opinion, No. As for your existing CMT holdings, I recommend swapping for Suntec or Cambridge or others instead. … Read more

MacArthurCook Industrial REIT Call

Call – MacCook Industrial REIT (MacCook MUST NOT be your only Holdings) Strategy Requirements: HOLD and take script (PLEASE DO NOT CONTRA) Entry Reason: Fundamental Strategy Type: Cash flow only Long-Term Target $1.30 (Exit) (Economic Recovery Expectation: 5 to 10 years) Due to potential negative development implied by yield, advise setting aside 1/3 of capital … Read more

A Closer Look at CCT

Scenario – Ascertaining the value of each CCT unit in event of open market disposal of all property assets and associate interest at half price. 50% Disposal of all properties, associate interests = 0.5 x 6927m     = 3463.5 + Cash and cash equivalent                                    = + 72.4m          = 3535.9 + Trade receivables                                      … Read more