*Official* Lippo Malls (SGX: D5IU)

[jowy85]

Anyone vested in LIppoMalls

Hi i recently bought 10 lots of Lmp.

so i know there is a CR beside it. When to read up and found out something like $0.31 a share for every one u holding.

Does it mean i can to buy 10 more lots @ $0.31 ?

Does this affect the shares price to drop to $0.31 ?

thx

 

[lzydata]

Heh, I find it amazing that you can buy into a REIT and have no idea what is happening with it.

You have bought it cum rights - for every 1 share you own, you are entitled to buy 1 new share at 31c apiece. You can also choose not to.

The market has already reacted to the announcement of the rights issue on 30 Sep. The theoretical ex-rights price is 42.5c (54c closing price on 29 Sep plus 31c divided by 2) but it seems the market already thinks better of the REIT.

For more info on the process of subscribing and what the money raised will be used for, please read the circular when you get it in the mail, or just download it from company announcements on SGX. Stay informed!

 

[jowy85]

thank for the info.

i have read up the info from sgx.com

Any advise from u guys, should i sell my 10 lots away now or should i purchase the 10 lots @ 31c ?

 

[lzydata]

thank for the info.

i have read up the info from sgx.com

Any advise from u guys, should i sell my 10 lots away now or should i purchase the 10 lots @ 31c ?

If you sell your 10 lots now you are selling away the rights too. Aiyoh.

 

[chill_lax]

now tat after the rights issue..will the dividend yield be affected? currently it is about 8%..pls enlighten me..thanks!

 

[lasnoblur]

now tat after the rights issue..will the dividend yield be affected? currently it is about 8%..pls enlighten me..thanks!

Probably will dilute with X2 shares in the market nxt quarter.

 

[chill_lax]

did it state any where about its dividend yield or DPU after rights issues?

 

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[lzydata]

did it state any where about its dividend yield or DPU after rights issues?

You can find the pro forma DPU and distribution yield in the circular for the rights issue. They take into account the increase in revenue from the properties to be acquired as well as the increase in number of units.

 

[OddEye]

dun buy reits , always have rights !

I don't really support the rule of giving at least 90% earnings to investors. As a result REITs lacked that internal growth element in them and always have to end up borrow more loans or issue rights.

Hope they regulate rules such that REITs that has fulfilled certain criteria are entitled to give yields less than 90% earnings rather than increasing their gearing ratio

 

[LoUsyGamER]

I feel that this is more like issuing new shares and collecting more money from investors. Usually for issuing new shares, the prices will drop. By how much? I'm not sure, i guess some pro out here can do the calculations or speculate.

If you make profit by selling it, you can look for another place to invest in.

Reits always have all this right issue but then some give stable and high dividends yield where you can't find anywhere.

 

[addict951]

that's why I say always buy BRANDED reits!

 

[OddEye]

I definitely prefer REITs that sell their own properties at a nice profit and use that money to buy a better property at low cost instead of borrowing and issuing rights.... Got such REIT or not ar? So far I only see Suntec REIT selling off properties nia

 

[addict951]

I definitely prefer REITs that sell their own properties at a nice profit and use that money to buy a better property at low cost instead of borrowing and issuing rights.... Got such REIT or not ar? So far I only see Suntec REIT selling off properties nia

CCT also wad

 

[Paul Lee]

that's why I say always buy BRANDED reits!

Even branded REITs issue rights and PO.

And LMT was a branded REIT until just recently when Mapletree gave it up.

I still dun understand why people complain about rights issue. Either they dun have the money to put it in the REIT or dun wish to put more in; and hence the right issue will be dilutive.

I dun buy the 'dilutive' argument. And I'm not the only one who share this view.

I do agree with one things is that REITs tend to have the need to rise equity much more frequently than other listed companies, as OddEyes as pointed out because of the structure.

So those who are uncomfortable with the structure or the need for frequent equity participation should probably just forget about investing in REITs.

(Not vested in LMT)

 

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[LoUsyGamER]

if you buy ABC-reit at $1 , they pay 7% dividends anually .

but after 1 year , price drop to $0.93 .
somemore they issue rights ,you put more money in and price drop somemore ...

so how can you make a profit ?

Doesnt that apply to all stocks? If you buy a capital stocks at $1 today. It drops the next year and the year after plus no dividends.

Maybe you can try out fixed incomes or just put the money in your saving account and collected interest.

 

[lzydata]

if you buy ABC-reit at $1 , they pay 7% dividends anually .

but after 1 year , price drop to $0.93 .
somemore they issue rights ,you put more money in and price drop somemore ...

so how can you make a profit ?

What you all have been assuming is that the REIT regularly issues rights to pay off debt and poor unitholders are just suckered into buying more and more and getting nothing for it.

Actually most REITs raise money to buy assets that are yield accretive. The manager does not just manage the portfolio as it is - they try to sell off assets at good prices if there are good buyers and to buy new assets at good prices if it is profitable. If they can do that then revenue increases, distributions increase, NAV increases, and at the end of the day unitholders have more distributions and a more solid REIT. Many locally listed REITs have been very profitable in this way. I don't know why people like to make sweeping statements when the facts so obviously contradict them.

As for whether you can profit based on the price of the REIT, that of course depends more on market sentiments. You have to do your homework and see if the price you pay for it at the time is lower than the intrinsic value of the REIT.

 

[WindBoi]

you realise most cash call is to purchase assets dump from sponsors!

 

[SpinFire]

Wah the rights are being sold down. 0.083 down to 0.023. Is this REIT that bad?