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Sell @ $0.925. Decided to contra off. Buyer ’20’ – Phillip. 😀
Interesting Battle between Buyer and Seller
15:29:15 0.925 100,000 Sell Down
15:29:02 0.925 15,000 Buy Up
15:28:59 0.925 2,000 Buy Up
15:28:58 0.925 1,000 Buy Up
15:28:49 0.925 4,000 Buy Up
15:28:42 0.925 14,000 Sell Down
15:28:35 0.925 138,000 Buy Up
15:26:51 0.925 6,000 Buy Up
15:26:50 0.925 200,000 Buy Up
Buy @ $0.365. Buy some to avg down my old ones. DPU dropped fm 2.35ct -> 1.875ct -> 1.5ct and Gearing is high @ 41.8% (high chance of rights issue). So, why buy?? My reasons,
(1) Stronger (?) New Trust Mgr cum Shareholder (15.85%) : Changed from financially troubled MacArthurCook to AIMS. Hopefully, they can negotiate for better terms for their loans (higher interest expenses contributed to drop in DPU).
(2) Yield is High : My estimate is they only need to do a 1-for-2 rights issue @ $0.30 to reduce gearing. Worst case estimate on impact of rights issue,
o 1-for-2 @ $0.30 : Gearing = 34.3% ; Yield = 11.1%
o 1-for-1 @ $0.30 : Gearing = 26.9% ; Yield = 8.27%
Warning : Don’t follow me as the risk is high. Seller ’20’ – Phillip. 😀
11:42:40 0.365 150,000 Sell Down
11:40:10 0.370 21,000 Sell Down
11:38:49 0.370 30,000 Sell Down
11:38:25 0.370 4,000 Sell Down
11:32:06 0.370 85,000 Buy Up
Sell @ $1.08. No more left. They announced an acquisition yesterday which’ll bring up the gearing to 31.1% (funded by debts). The guaranteed Net Income is $5Mil (est. is $5.5Mil) which for a $100Mil+ property equates to <5% yield. As this is less than current 9%++ yield for KREIT, I don't think it's in shareholders' interest. Decided to sell as the TA experts are also saying STI is going to start a correction soon, haha.. For Gearing of 30% to 35%, I'd prefer Suntec. Buyer '31' – DMG 😀