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*Official* Keppel Infrastructure Trust (SGX: A7RU)

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Old 21-06-2015, 01:20 PM   #61
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are you sure your numbers are correct

5x net debt to equity?

$5 debt to $1 equity? don't think so ba......


same as reits... don't see earnings that much, but more on the cash flow/distribution to shareholders

maybe u check again things like nav per share, and debt/asset ratio?


If reits are distributing much more than they can earn, its a clear sign of unsustainability. These are sign posts for rights issue, placement and other money raising schemes ahead. My view.
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Old 21-06-2015, 01:34 PM   #62
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If reits are distributing much more than they can earn, its a clear sign of unsustainability. These are sign posts for rights issue, placement and other money raising schemes ahead. My view.
I think the numbers there is likely CIT's instead

pre-merger CIT the numbers looked like that... it was badly run with a lot of debt and decline NAV (that's kanna makan and old management kicked out liao)

and KIT was net cash position with no debt

post combination.. I think the numbers are not updated yet cause you wouldn't see so many years of figures, maybe better that u check the new KIT prospectus (the one with post rights issue figures)
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Old 21-06-2015, 01:37 PM   #63
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I think the numbers there is likely CIT's instead

pre-merger CIT the numbers looked like that... it was badly run with a lot of debt and decline NAV (that's kanna makan and old management kicked out liao)

and KIT was net cash position with no debt

post combination.. I think the numbers are not updated yet cause you wouldn't see so many years of figures, maybe better that u check the new KIT prospectus (the one with post rights issue figures)
Ya I rem cityspring FA to be really messy. Wonder why KIT is doing a reverse takeover of this neg earnings and high debt trust. Why do they call it yield accretive? Maybe I haven't read much into it. I personally never touched business trust due to their uncapped gearing and bad general performance on the STI. My view.
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Old 21-06-2015, 01:38 PM   #64
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anyway Q2 coming soon le, i suggest u all wait for results and presentation slides of post deal numbers of KIT

probably july/aug will know le

not vested but interested if the price is right
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Old 21-06-2015, 01:41 PM   #65
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Ya I rem cityspring FA to be really messy. Wonder why KIT is doing a reverse takeover of this neg earnings and high debt trust. Why do they call it yield accretive? Maybe I haven't read much into it. I personally never touched business trust due to their uncapped gearing and bad general performance on the STI. My view.
ohh cause the parent keppel wants to grow its infra portfolio...
marine segment no good

so we have seen them expanding more towards property (kep land) and infra (makan CIT) deals......

post deal, KIT will be the biggest utility counter in SG
keppel corp will benefit with recurring income on the 4billion+ assets it manages....

also KC itself can dump their old utilities assets into KIT... as they need to raise cash to feed their marine business

for KIT shareholders becareful... this will not be the last rights/placement... confirm more to come... can check KC's annual report.. as they still have many utilities assets not pumped into KIT yet

cheers
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Old 21-06-2015, 01:42 PM   #66
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Q1 results will be out in July, according to the website

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Old 21-06-2015, 01:56 PM   #67
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Ya I rem cityspring FA to be really messy. Wonder why KIT is doing a reverse takeover of this neg earnings and high debt trust. Why do they call it yield accretive? Maybe I haven't read much into it. I personally never touched business trust due to their uncapped gearing and bad general performance on the STI. My view.
The key thing about business trusts is - in my opinion - good corporate governance. Imagine if CIT were run as a REIT; the stock would have been underwater out of the door. However, as a business trust, it has the option to leverage from op cashflow for dividends, and has no gearing limit; heck, it's more similar to a listed company than a REIT. Hence the emphasis on corporate governance.

Given this, I think CIT had made risky corporate moves in the past, but now with the merger, hopefully things will be run more safely under the new management.

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Old 21-06-2015, 02:41 PM   #68
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The key thing about business trusts is - in my opinion - good corporate governance. Imagine if CIT were run as a REIT; the stock would have been underwater out of the door. However, as a business trust, it has the option to leverage from op cashflow for dividends, and has no gearing limit; heck, it's more similar to a listed company than a REIT. Hence the emphasis on corporate governance.

Given this, I think CIT had made risky corporate moves in the past, but now with the merger, hopefully things will be run more safely under the new management.

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yeah, I prefer keppel management
more reputable ba

hope SCI can spin off a utility trust too haha
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Old 21-06-2015, 02:45 PM   #69
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If reits are distributing much more than they can earn, its a clear sign of unsustainability. These are sign posts for rights issue, placement and other money raising schemes ahead. My view.


gearing is 30%++ nia base on latest prospectus

next time maybe u check first before posting... don't scare us leh hahaha
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Old 21-06-2015, 08:39 PM   #70
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The 1Q results for Fiscal Year 2016 will be out in August 2015.

The reason why the deal was structured in such a way is because legally speaking, we cannot call it a merger or combination. It is simply a disposal of all the assets in the old KIT to CIT. The reason why CIT don't dispose its assets to KIT instead is because there will be more complications. All the assets owned by KIT belongs to one stakeholder. CIT has many stakeholders to the assets and will thus require alot more approvals and involve alot of parties. So, selling KIT to CIT is alot faster and cheaper.

Thereafter, all the old KIT shareholders get 2.106 units of CIT for each KIT units held. Then, KIT is renamed Crystal Trust and eventually dissolved. CIT is then renamed KIT fka CIT.

One of the selling point that the KIT management has touted is that their yield is very high around 7%+. And their assets have long contract life so they can provide stable cash flows for decades unlike REITS whose rental expire every 3 years, exposing stakeholders to new risks.

In addition, the first 25 year's cashflows will be mainly contributed by KIT's assets. After that, there will be not much cashflow. However, CIT's assets will then come in to make up for the cashflow.

Lastly, the management highlighted that even if the share price rose and that the yield fell to 5%-6%++, its okay because that means they can easily look for new assets out there that are yield accretive.

If it stands at 7%+, it will be alot more challenging to find yield accretive assets.
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Old 21-06-2015, 09:34 PM   #71
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The 1Q results for Fiscal Year 2016 will be out in August 2015.

The reason why the deal was structured in such a way is because legally speaking, we cannot call it a merger or combination. It is simply a disposal of all the assets in the old KIT to CIT. The reason why CIT don't dispose its assets to KIT instead is because there will be more complications. All the assets owned by KIT belongs to one stakeholder. CIT has many stakeholders to the assets and will thus require alot more approvals and involve alot of parties. So, selling KIT to CIT is alot faster and cheaper.

Thereafter, all the old KIT shareholders get 2.106 units of CIT for each KIT units held. Then, KIT is renamed Crystal Trust and eventually dissolved. CIT is then renamed KIT fka CIT.

One of the selling point that the KIT management has touted is that their yield is very high around 7%+. And their assets have long contract life so they can provide stable cash flows for decades unlike REITS whose rental expire every 3 years, exposing stakeholders to new risks.

In addition, the first 25 year's cashflows will be mainly contributed by KIT's assets. After that, there will be not much cashflow. However, CIT's assets will then come in to make up for the cashflow.

Lastly, the management highlighted that even if the share price rose and that the yield fell to 5%-6%++, its okay because that means they can easily look for new assets out there that are yield accretive.

If it stands at 7%+, it will be alot more challenging to find yield accretive assets.
Ah, a well read person who knows the ins and outs of this stock.

Personally I'm ok with 4 to 5% dividend yield at current price, as long as it is sustainable in the long run...onus is on management to make it so.

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Old 22-06-2015, 12:08 PM   #72
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how come $$ for excess rights still not refunded yet? wah lao rly beh kan man
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Old 22-06-2015, 01:55 PM   #73
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how come $$ for excess rights still not refunded yet? wah lao rly beh kan man
Refunds will be made within 14 days from date of listing and trading, which is today...It's all stated in the circular...

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Old 22-06-2015, 02:05 PM   #74
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Refunds will be made within 14 days from date of listing and trading, which is today...It's all stated in the circular...

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is by 24th, not today
done so many rt issue, this one most beh kan.. result take so long, allocate liao still dun refund.. grrrr
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Old 22-06-2015, 02:07 PM   #75
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is by 24th, not today
done so many rt issue, this one most beh kan.. result take so long, allocate liao still dun refund.. grrrr
alamak. you're right, 24th, cause 10th was last day of rights sub. *shrugs*
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