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Not bad got 1.6% dpu payable too..
: Ascott Residence Trust: Private placement 3 times subscribed
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"steven.koh@cimb.com" <steven.koh@cimb.com>
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Private_Placement_Press_Release.pdfAscott Residence Trust (ART SP) BUY
Price/Tgt: S$1.15/S$1.40 Mkt Cap: S$530.9m Daily: Vol 1.22m 1-Yr Hi/Lo: S$1.41/S$0.92
Private placement 3 times subscribed, 1-for-10 preference shares priced at S$1.07
Analyst: Vikrant Pandey/Singapore Research Team Tel: (65) 6590 6623/6590 6626
· Ascott Residence Trust (ART) reported that its private placement of 419.7m units was fully placed at S$1.08/ share, raising S$453.2m. This represents a discount of 4.7% to the adjusted volume weighted average price on 13 Sep.
· The 216.5 placement new units for institutional investors were 3 times subscribed, and 203.2m private placement new units were subscribed by CapitaLand, maintaining its 47.74% stake in ART.
· Existing unitholders of ART will be able to subscribe for 67.9m new units of the preferential offering on a non-renounceable basis of one preferential offering new unit for every 10 existing units held on 21 Sep 2010. The preferential offering new units are priced at an issue price of S$1.07/ unit. The preferential offering will open on 24 Sep 10 and close on 30 Sep 10.
· ART also announced a advanced distribution of 1.6 cents for existing shareholders from the distributable income for the period from 1 July 2010 up to the day immediately prior to the date of issuance of the private placement units.
· The issue price of S$1.08 for the private placement units is in line with our expectations. Maintain BUY with a target price of S$1.40. The details have been attached for your reference.
This transmission has been issued by a member of the UOB Kay Hian Group for the information of the addressee only and should not be reproduced and/or distributed to any other person. Each page attached hereto must be read in conjunction with any disclaimer which forms part of it. Unless otherwise stated, this transmission is neither an offer nor the solicitation of an offer to sell or purchase any investment. Its comments are based on information obtained from sources believed to be reliable but UOB Kay Hian Group makes no representations and accepts no responsibility or liability as to its completeness or accuracy.
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EGM on 9Sept recently already approved the intention to raise fund via rights issues
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DJ MARKET TALK:Morgan Stanley Raises Ascott REIT Target To S$1.30
Dow Jones Newswires | 23 Aug 2010 4:12pm 0813 GMT [Dow Jones] STOCK CALL: Morgan Stanley lifts Ascott Residence Trust (A68U.SG) target price to S$1.30 from S$1.18, based on discounted cashflow valuation, to factor in value accretion stemming from S$969.6 million purchase of 28 serviced residence properties from parent CapitaLand (C31.SG). "We see improved earnings stability from diversification into Europe and from greater earnings contribution from master leases and guaranteed income contracts." _________________________________________________________________________ Paul's and Morgan Stanley's optimism notwithstanding, my concern is that after the placement, the final outstanding shares tally is not far from doubled! That is definitive. What is not is the increase in dividend payment. That's just one of their so-called 'forward-looking statements'. How much dividend will improve from the new Europe portfolio would depend on how well the 26 properties do in terms of bottom line. And that would depend on the geographic location of the properties, their marketing strategy and links with tour agents, and of course the state of not only the Eurozone but the global economy as well. |
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 25-08-2010, 11:45 AM |
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Senior Member
Join Date: Jan 2000
Posts: 2,151
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 MikeL09 wrote:
What do you guys make of the above development? I dun see any problem with exposure to European. The post-acquisition mix still looks ok to me. Its seems to me though that Ascott REITs is changing their focus from being a 'Pan Asian hospitality REIT' to one that encompassed the wider European region. Perhaps it is precisely because things are precarious in Europe that makes the acquisition attractive. While I will want to go through the giant circular in greater detail (looks to be nearly as thick as the yellow pages!), I do judge the proposed acquisitions positively despite the dilution factor. Sell down is always an opportunity to buy more! |
pharoah88 ( Date: 02-Aug-2010 20:13) Posted:
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