Buy @ $4.32, $4.31
SPH REIT was listed at 2pm and opened at $0.98, hitting a high of $1 and closing at $0.985. With SPH holding at least a 70% stake, my estimate is,
Every 1ct of SPH REIT equates to a value of $17.5Mil or 1.1ct / share for SPH. Using 90ct issue price as a reference, the closing price of $0.985 means an increase in value of $148.8Mil or 9.3ct / share.
But, as someone pointed out in VB forum, their 70% controlling stake means, SPH REIT accounts will be consolidated into SPH Group accounts ie. we won't see any Fair Value Gains due to valuations (of the SPH REIT shares), except for those of the Investment Properties (Paragon & Clementi Mall). Still, if SPH were to sell any of their SPH REIT shares, they'll recognise a realised profit. This is assuming SPH REIT share price stays above the 90ct IPO Price.
FY13 (Aug) results will be out in mid-Oct. We ought to see the 18ct Special Dividend that was promised for SPH REIT being IPOed + Final Dividend ~17ct (last year). Total 35ct, when compared to the current Share Price makes it less unattractive. In the longer run, SPH has the option to issue SPH REIT as Dividend-in-Specie (same as KepCorp issuing KepREIT units). I'll likely buy more if it drops further. 😀