Sell @ $1.02
Last day of cd today (DPU = 3.6616ct). I decided to take profit for the bulk of my holdings even tho' Yield = 7.18% is still the 2nd highest. Gearing = 35.3% ; NAV = $0.82 makes it only a bit less attractive. My main concern is the impending Equity Fund Raising to raise $300M for their acquisition of Park Hotel (Singapore). It's going to be massive as it's ~30% of current total assets.
After market closed, some brief details were released in an SGX Annc. Doesn't look too good to me as the two scenarios (different amount of Debts used) will result in what appeared to be a slightly lower DPU on a Proforma basis. The Illustrative Issue Price used was $0.965 and I'm surprised they didn't compute the Yield using TERP (Theoretical Ex-Rights Price). Perhaps it's not too surprising after all as using TERP will result in even lower Yield for existing shareholders!
Let's see if the market punishes the share price on Monday. I have left a few lots so that I can join in the fun (Rights Issue) but after looking at this SGX Annc, I think I'll sell if prices maintain at xd level ie. $0.98+ 😀