Macquarie International Infrastructure Fund (MIIF)

[Wannabe Richer]

10% yield!! Macquarie International Infrastructure Fund (MIIF)

Macquarie International Infrastructure Fund Limited (MIIF) is a leading owner and operator of private infrastructure businesses. MIIF has investments in toll roads, ports, renewable energy and communications and broadcast infrastructure businesses.

Investments portfolio: Changshu Xinghua Port (CXP), Hua Nan Expressway (HNE), Miaoli Wind, Taiwan Broadband Communications (TBC).

Dividends paid half yearly
Latest dividend:2.75 cents (paid 26 March 2012)
Dividend yield of 9.82% based on price of $0.56, assuming dividends are sustained. Post 2009 crisis, yield was 4cts!!

Current price showing uptrend and seems like a good buy, and the crazy yield is really attractive. But DBS recently downgraded MIIF because of "unsustainable dividends".

"Sustainable economic growth over time requires investment in new infrastructure and maintenance of existing infrastructure assets. Hua Nan Expressway is the first toll road in Guangdong province to implement electronic tolling, with exclusive tolling rights for up to 2026. Taiwan Broadband Communications (TBC) is one of the three leading television operators in Taiwan, which is the fourth largest cable television market by revenue in Asia. TBC's cable network provides integrated entertainment and communications services to more than one million homes."
- Macquarie International Infrastructure Fund (MIIF) - Key facts

Your opinions?

 

[Wood4]

I keep some for yield & fun.
Hopefully it moves up .

 

[Mecisteus]

dividends is expected to be cut.

 

[Paul Lee]

Even if it's cut to 5c, the yield would still be ard 9% at current price.

I bought this at the height of the GFC so its probably the highest yielding in my portfolio. So won't be too concern about a cut in dividend - for the moment. But will be watching this one like a hawk closely for any negative developments.

 

[Wannabe Richer]

Even if it's cut to 5c, the yield would still be ard 9% at current price.

I bought this at the height of the GFC so its probably the highest yielding in my portfolio. So won't be too concern about a cut in dividend - for the moment. But will be watching this one like a hawk closely for any negative developments.

wow. that means you got it below 40c?

Since it's likely to cut dividends, would you sell it before they announce their next pay out?

It will probably drop substantially on XD too right (23 Aug)?

 

[Wildreamz]

I am sure some of you have been paying attention to this fund due to its high yield and trading below NAV. It has risen 10% since the announcement of the special dividend the start of this week.

Personally since it is still trading below NAV and still has a dividend payout of 8%, plus a 1 time special dividend that has yet to be announced. I think it is still a good value investment at the current price ($0.64).

 

[Hoo8899]

I am sure some of you have been paying attention to this fund due to its high yield and trading below NAV. It has risen 10% since the announcement of the special dividend the start of this week.

Personally since it is still trading below NAV and still has a dividend payout of 8%, plus a 1 time special dividend that has yet to be announced. I think it is still a good value investment at the current price ($0.64).

Once in my buy watchlist, but somehow I didn't take the action simply because it is yet another business trust. Ofcoz a bit of regret now, but higher return means higher risk also. GL to all the unitholders, not vested.

 

[remy3413]

I am sure some of you have been paying attention to this fund due to its high yield and trading below NAV. It has risen 10% since the announcement of the special dividend the start of this week.

Personally since it is still trading below NAV and still has a dividend payout of 8%, plus a 1 time special dividend that has yet to be announced. I think it is still a good value investment at the current price ($0.64).

i saw it too but the problem lies with their chinese expressway, the revenue generating from the tolls are decreasing

the price has been factored in since they declared the special dividends

64 cents is an all time high before the GFC

 

[Wildreamz]

i saw it too but the problem lies with their chinese expressway, the revenue generating from the tolls are decreasing

the price has been factored in since they declared the special dividends

64 cents is an all time high before the GFC

Yeah, I noticed that too. Considering that they haven't announce the exact value of the special dividend and the fact that it trades below NAV I still think it has good upside potential.

Tried to queue last week at 0.58 but failed, should have just bought at ask price 0.585, regret regret.

 

[Wannabe Richer]

Hi All, so MIIF is delisting and shutting down. Macquarie to Shut Singapore Infrastructure Fund on Outlook- Bloomberg

So what happens to share holders? Will they receive the NAV and special dividends? If so, why hasn't the price risen to match the NAV? Is this because it will take very long before we get the payout?

Thanks all

 

[Paul Lee]

Simple answer: We know what's going to happen; but we dun know when it will happen.

The devil is in the details and as of now, a lot of the details are missing. How much special dividend will be paid? When will they sell their assets and at what price? What are they going to do with the stake in TBC? etc..

MIIF took pains to emphasis that they are not in a hurry to sell their assets and there is no specific timetable. This is important so as not to give an impression of a fire sale. So the sale of the assets must be done in an orderly manner and at a price that is fair.

All these unknowns contributed to the discount to NAV now and it will continue to be the case until things become clearer.

 

[Wannabe Richer]

Simple answer: We know what's going to happen; but we dun know when it will happen.

The devil is in the details and as of now, a lot of the details are missing. How much special dividend will be paid? When will they sell their assets and at what price? What are they going to do with the stake in TBC? etc..

MIIF took pains to emphasis that they are not in a hurry to sell their assets and there is no specific timetable. This is important so as not to give an impression of a fire sale. So the sale of the assets must be done in an orderly manner and at a price that is fair.

All these unknowns contributed to the discount to NAV now and it will continue to be the case until things become clearer.

Thank you so much for clearing up.
But eventually when they pay out, it will still be above the current share price right? Is there a chance we receive less than the current share price?

 

[Carnage]

Thank you so much for clearing up.
But eventually when they pay out, it will still be above the current share price right? Is there a chance we receive less than the current share price?

That depends on what price you bought at and how much you determine your margin of safety to be. If you think 10% below NAV is still worth it, go ahead and buy in.

Today it closed at 62 cents.

(Not vested)

 

[w1rbelw1nd]

Hi All, so MIIF is delisting and shutting down. Macquarie to Shut Singapore Infrastructure Fund on Outlook- Bloomberg

So what happens to share holders? Will they receive the NAV and special dividends? If so, why hasn't the price risen to match the NAV? Is this because it will take very long before we get the payout?

Thanks all

I think another reason why the share price hasnt raise up to NAV is that the management will definitely ask for fees for their part in the divestment, on top of their usual management fees.

Actually I am quite surprised that the share price doesnt go up more. I will probably buy a few lots if the share price drops a little.

 

[Wildreamz]

Latest news 21 Jan 2012

Last Close Price: $0.64

Special + Final Dividend = $0.03 + $0.0275 = $0.0575 = 8.98%

Ex-Dividend Date = 1st Feb

NAV = $0.70 per share

Total upside (including dividends) from last traded price = 18.36%

http://info.sgx.com/webcoranncatth.nsf/VwAttachments/Att_8830CD2865ACDF6E48257AF9005E930D/$file/MIIFFY2012Results.pdf?openelement
http://info.sgx.com/webcoranncatth.nsf/VwAttachments/Att_295E8A0C61DC7ED248257AF900610628/$file/MIIFFY2012Dividend.pdf?openelement

Still no information on the actual divestment date.

 

[Paul Lee]

Still no information on the actual divestment date.

There is no divestment date and no timetable. It will be an orderly divestment and not a fire sale. Management will only sell at the correct price. If they dun get a good price, they can just hold on to it. So it could be next 6 month or next 6 years. Only the market conditions will decide the divestment schedule (vested)

 

[Wildreamz]

There is no divestment date and no timetable. It will be an orderly divestment and not a fire sale. Management will only sell at the correct price. If they dun get a good price, they can just hold on to it. So it could be next 6 month or next 6 years. Only the market conditions will decide the divestment schedule (vested)

I understand. But realistically, divestment would still proceed as soon as market condition allows. Their valuation of their asset is conservative (maybe a little too conservative). They should be able to divest within 12 months without a problem.

Vested

 

[wwf]

So anyone going to buy now? Thinking there maybe a small profit opp here?

Do u think that they will stop dividend payment this yr.

Once they sell off current asset @ say 63cent.

Given current share price 58cents, we earn 5cents profit

 

[Carnage]

Now is 56.5 cents, meat on the table getting more with each dip.

 

[Wood4]

Now is 56.5 cents, meat on the table getting more with each dip.

More skinny cow & less meat ?