if you are existing unit holder of any REITs, always be prepared for rights issue, have the cash to mop up the rights units, or buy from market when prices are lowered after dilution. That's one downside of REITs investing...but CICT being the big dog here (along with its sponsor)...it can't go too wrong over 10-20 years. It's a well timed move actually, because rates are coming down, so the REIT prices should slowly inch up along with market sentiments and thus make up for the dilution for holders who don't have funds to buy the rights
You’re absolutely right about REITs! And I also agree with your point about the timing of the purchase. Thanks for your slice of wisdom to the community here :)
For retail investors, dilution aka % of a company ownership shouldn't matter, as long as the acquisition is DPU accretive. But I do agree that with acquisition of such scale, the DPU increase is negligible. It feels like the middle man, REIT manager and the sponsor are the ones that has much to gain from this acquisition.
It’s true, if the acquisition boosts DPU, the investor will still benefit. Ikr, the fees seem high, but when compared to the size of the transaction, it’s not too bad.
COCT has not been on my buy list. If you look at the LT performance (10 years plus) it has gone nowhere, ignoring the pre covid rise before the collapse. Agreed, reits are generally not big capital growers, but I think investors do expect some capital growth over the years.
Hey Buddy, I think that is reflective of the poor operating environment over the past few years and the nature of REITs which have to distribute most of its earnings. Having said that, I do agree that investors are looking for perhaps, very broadly, at least 2% growth and 5% dividend yield. But I think the coming months, and years could be interesting - let’s revisit this again in one year’s time, and see whether the averages have been pushed up. But I must say this REIT definitely has a part to play in the core portfolio, offering stability and diversification.
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thank you for your perspective on cict acquisition of ion orchard! i have learnt something from this video!
Thanks, it’s comments like this that keeps me going! I’m really glad it has been helpful in some ways :)
To qualify for the preferential offering, is there a deadline to buy into cict share ? Fyi i dont own the shares now.
Hi Hock Soon, you need to be a unit holder as at 5pm on 11 Sep, so that will be this Wednesday.
Great perspectives
Thanks v much, Elgin ❤
if you are existing unit holder of any REITs, always be prepared for rights issue, have the cash to mop up the rights units, or buy from market when prices are lowered after dilution. That's one downside of REITs investing...but CICT being the big dog here (along with its sponsor)...it can't go too wrong over 10-20 years. It's a well timed move actually, because rates are coming down, so the REIT prices should slowly inch up along with market sentiments and thus make up for the dilution for holders who don't have funds to buy the rights
You’re absolutely right about REITs! And I also agree with your point about the timing of the purchase. Thanks for your slice of wisdom to the community here :)
Great insights!
Thanks so much! I’m so glad it was useful in some ways :)
I live near the north and I hated going CWP. It is damned crowded and so I am vested into FCT.
Being right in the thick of action helps to justify our investments, and it’s the best way to do it.
For retail investors, dilution aka % of a company ownership shouldn't matter, as long as the acquisition is DPU accretive. But I do agree that with acquisition of such scale, the DPU increase is negligible. It feels like the middle man, REIT manager and the sponsor are the ones that has much to gain from this acquisition.
It’s true, if the acquisition boosts DPU, the investor will still benefit. Ikr, the fees seem high, but when compared to the size of the transaction, it’s not too bad.
COCT has not been on my buy list. If you look at the LT performance (10 years plus) it has gone nowhere, ignoring the pre covid rise before the collapse. Agreed, reits are generally not big capital growers, but I think investors do expect some capital growth over the years.
Hey Buddy, I think that is reflective of the poor operating environment over the past few years and the nature of REITs which have to distribute most of its earnings. Having said that, I do agree that investors are looking for perhaps, very broadly, at least 2% growth and 5% dividend yield. But I think the coming months, and years could be interesting - let’s revisit this again in one year’s time, and see whether the averages have been pushed up. But I must say this REIT definitely has a part to play in the core portfolio, offering stability and diversification.
contains are nice but ur AI voice can improve 🤭
Hi Fynn, thanks for your support! Haha I’m constantly searching for better AI voices for my videos ;)