First REIT

the funny thing is that they shunned debt for a long time, then in the last 2 years they sorta woken up and say "hey debt is f***ing cheap, lets levered up" or "we have to sell these assets to first reit" so they start levering up.

if you look at cost of equity versus debt, there is a justifiction for them to do that. and then now u see perhaps they should just remain conservative.

had they not do that yield may not have shot up.

you may argue that first reit at 75-80 cents is lower in gearing and in a good position. perhaps they were slightly under valued. at this point where does that leave us?

more risks on the table to evaluate and perhaps 75-80 cents is really the safe range now. NAV around 94 cents which means not much consider the possible revaluation downwards

(21-08-2013, 11:09 AM)Nick Wrote: First REIT is not a new REIT on the block - its been around for over 5 years and we can get an idea on how the Management has used equity as a tool in the past. I don't think there was ever a case of them raising equity to repay debt.

U made a good point, Nick.

Yupp. Thanks a lot for the information!!

The SGD bond they raised in May is 4.125% for 5 years. Just thinking about the currency risk. If their revenue isnt affected (since its in SGD), then i guess everything is pretty much fine?
1.00 seems like a strong support? time to load up? haha.

In the statement of distribution, it is stated that unitholders' distribution comes from:
- distribution from operations
- distribution of Unitholders' capital contribution

What is distribution of Unitholders' capital contribution? If there is no divestment, shouldn't be all the profit comes from NPI?

Ok. This is about my First Reit shares. I've never really looked at the letters sent via Standard Chartered when they have a corporate announcement for taking cash or shares during their dividend distribution until my buddy called me while he was on reservist. Guess he had too much time in there. Went back to dig up the letters sent and found some request to declare my position or else, part of my dividends will be taxed.

In the letter, apart from the corporate announcement, Standard Chartered sent a 2 pages asking us to declare if we are

(A) Individuals and the units are not held through a partnership in Spore
(B) Qualifying Unitholders
© Foreign non individual investors

Letter's too long and dry but basically they spelt out that no tax will be deducted from individuals, companies incorporated and tax resident in singapore. If I'm not making sense, that's coz I'm confused.

I called the Standard Chartered hotline but the customer service who handles the corporate announcement action is equally lost.

Anyone have any idea on this?

OOps. Sorry. This should have been posted under First Reit I think.

(08-02-2014, 12:28 AM)runicx Wrote: OOps. Sorry. This should have been posted under First Reit I think.

I merged your post into First Reit thread.

(08-02-2014, 12:13 AM)runicx Wrote: Ok. This is about my First Reit shares. I've never really looked at the letters sent via Standard Chartered when they have a corporate announcement for taking cash or shares during their dividend distribution until my buddy called me while he was on reservist. Guess he had too much time in there. Went back to dig up the letters sent and found some request to declare my position or else, part of my dividends will be taxed.

In the letter, apart from the corporate announcement, Standard Chartered sent a 2 pages asking us to declare if we are

(A) Individuals and the units are not held through a partnership in Spore
(B) Qualifying Unitholders
© Foreign non individual investors

Letter's too long and dry but basically they spelt out that no tax will be deducted from individuals, companies incorporated and tax resident in singapore. If I'm not making sense, that's coz I'm confused.

I called the Standard Chartered hotline but the customer service who handles the corporate announcement action is equally lost.

Anyone have any idea on this?

All dividends received by an individual resident in Singapore are not taxable as Singapore uses one-tier tax system. I uses SCB to hold some other REITS, but i didn't receive such letters. I guess you just have to write in and inform them that you are a an individual and the units are not held through a partnership in Spore, (if you are).

There will be withholding tax involve if the shares that you are buying for the purpose of a trade (your business is about investing), and that your business is overseas. so this will be the option C.
Not too sure what option B means.

for better understanding, here a reference about tax on dividends.
http://www.iras.gov.sg/irashome/page04.aspx?id=146

(21-08-2013, 03:34 PM)l0nEr Wrote: Yupp. Thanks a lot for the information!!

The SGD bond they raised in May is 4.125% for 5 years. Just thinking about the currency risk. If their revenue isnt affected (since its in SGD), then i guess everything is pretty much fine?
1.00 seems like a strong support? time to load up? haha.

Loner you need to think margin of safety. load up when there is a discount to NAV. Which can happen if there is a sell-down or if management decides to sell some properties at a profit which will improve gearing and increase NAV.

(08-02-2014, 03:47 PM)CityFarmer Wrote:

(08-02-2014, 12:28 AM)runicx Wrote: OOps. Sorry. This should have been posted under First Reit I think.

I merged your post into First Reit thread.

Thanks!