Buy @ $0.725. Yield @ 8.855%, better than AscottREIT today. Seller code ’08’ – CS, noticed that it’s prob them selling down whenever anyone try to buy up. This coming results, we may get an update on their sales of Aussie assets. 😀
AllCo @ $0.84
Sell @ $0.84. Q1 results were out last nite, DPU = 1.6ct (not paid as semi-annual policy). Above their projection of 1.5ct but way below my expectation as Q407 was 2.2ct. Yield = 7.643% @ $0.84.
Main positive is that they’ll appoint a sales agent for their Oz assets which is valued at ~S$600M+ or ~ $0.875/share. Their plan is to reduce their debts (gearing now 44.8%) and shift focus out of Oz to Asia. The coming year will be one of consolidation and organic growth, rather than acquisitions. 😀
AllCo @ $0.835
AllCo @ $0.85
AllCo @ $0.76
Buy @ $0.76. They just confirmed Moody’s downgrade – may have problem refinancing their debts at a good rate or worst case, gearing limit will drop from 60% to 45%.
On the positive side, they have indicated that they may sell their Australia assets (boom there), which will allow them to reduce their debts. If they are able to sell at their last valuation, the profits are also quite substantial (Cost A$346.8M ; Valuation A$482.9M => A68.4ct/share or ~S87ct/share ; Debts stands at S$888M ). The main risk is whether they can sell the Aussie assets at valuation. 😉