Category: IREIT Global

Buy @ $0.795

A new addition to my portfolio. The only time I'd held IREIT was from IPO allotment but I sold off as Euro Exchange Rate dropped from $1.70 to $1.5x.

This AM, before mkt opened, there was an SGX Annc on a proposed acquisition to be funded by Debts & 45-for-100 Rights @ $0.468. Proforma figures projected an increase in Yield by ~1%, but mainly due to an increase in Gearing from 31.8% to 43.7%. Last day cri is 3-Jul-15.

The key risk is still on Exchange Rate as GREXIT is now a very high probability. Their assets, being in Germany, a stronger economy, do provide some level of comfort. For now, with EU QE, interest rate will remain low for a few more years, altho' for the proposed acquisition, Interest Rate is fixed for 10yrs and is not a key concern.

Sell @ $0.89

Decided to sell instead of collecting more as Euro is now ~-4%+ lower than the 1.68 – 1.70 used in their IPO DPU projection for a Yield of 7.6% to 8% @ $0.88. That means projected Yield may potentially be  7.22% to 7.57% @ $0.895. Further, the outlook for the Euro don't look very good due to the on-going PIIGS crisis + Russia sanctions + Weakening economy of the stronger Euro nations like Germany.

Will look at it again when their Quarterly results provide better clarity… 😀

Alloted @ $0.88

Got some fm IPO. Tried to buy more today when it got listed at 2pm, but was unsuccessful. Range $0.88 – $0.905 ; Vol = 7,471,000.

At IPO = $0.88,

• Yield = 7.6% (FY13) ; 8% (FY14  FY15)
• Gearing = 33.2%
• NAV = $0.78
• Major Shareholders : Shanghai Summitt 60% ; Mr Lim (SoilBuild boss) 19%
• Assets : Office Buildings (Germany)

It seems too good to be true! Assets in a 1st world economy with not too high leverage and High Yield. On top of that, Free Float is low as Issue Size is not huge and 2 Major Shareholders account for 79%. So, what's the catch??