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I updated the business trust performance list taking into account the recent share price movements and corporate actions (rights, dividends etc). Pls feel free to point out any errors made in the data presented.
Ascendas India Trust
IPO Price: $1.18 (IPO’ed in 2H 07)
Current Price: $0.95
Dividends Declared: $0.2776
Net Loss: $0.0476
Net Gain Percentage: 4.03%
CitySpring
IPO Price: $0.89 (IPO’ed in early 2007)
IPO Price after adjusting for 1 for 1 rights @ $0.48: $0.685
Dividends Declared: $0.1583 (pre rights) & $0.0525 (post rights)
Dividends Declared adjusting for rights: $0.15265
Current Price: $0.495
Net Loss: $0.03735
Net Loss Percentage: 5.45%
First Ship Lease Trust
IPO Price: US$0.98
Dividends Declared: US$0.3167
Current Price: US$0.2845 (using current exchange rate)
Net Loss: US$0.3788
Net Loss Percentage: 38.7%
India Bulls Properties Investment Trust
IPO Price: $1.00 (June 2008)
IPO Price after adjusting for 53 for 100 rights @ $0.16: $0.709
Dividends Declared: 0
Current Price: $0.19
Net Loss: $0.519
Net Loss Percentage: 73.2%
K-Green Trust
IPO Price: $1.11 (based on 1st day closing price in June 2010)
Dividends Declared: 0.0431
Current Price: $1.075
Net Gain: $0.0081
Net Gain Percentage: 2.7%
Pacific Shipping Trust
IPO Price: US$0.45 (IPO’ed in 2H 2006)
IPO Price Adjusting for offer of 3 for 4 @ USD 0.365: US$0.414
Dividends Declared: US$0.099253 (pre rights) & US$0.07533 (post rights)
Dividends Declared (adjusting for rights): US$0. 0.148226
Current Price: US$0.36
Net Gain: US$0.094226
Net Gain Percentage: 22.7%
Rickmers Maritime Trust
IPO Price: US$1.00
Current Price: US$0.329 (current exchange rate)
Dividends Declared: US$0.21354
Net Loss: US$0.45746
Net Loss Percentage: 45.7%
Treasury China Trust
IPO Price: $1.76 (based on 1st day closing price)
Dividends Declared: $0.050
Current Price: $1.945
Net Gain: $0.235
Net Gain Percentage: 13.3%
MIIF
IPO Price: $1.00 (2005)
Current Price: $0.57
Dividends Declared: $0.364
Net Loss: $0.066
Net Loss Percentage: 6.6%
Global Investment Limited
IPO Price: $1.06
IPO Price Adjusting for offer of 2 for 5 @ $0.138: $0.7965
Dividends Declared: $0.1459 (adjusted for rights)
Current Price: $0.158
Net Loss: $0.4926
Net Loss Percentage: 61.8%
HPH Trust
IPO Price: US$1.01
Dividends Declared: 0
Current Price: US$0.85
Net Loss: $$0.16
Net Loss Percentage: 15.8%
Treasury China Trust is the only business trust trading above its IPO price. It, together with PST, are the only ones which provided meaningful returns to unit-holders since it IPO. The rest failed to do so due to a multitude of reasons. In terms of DPU payouts and sustainability, I would say that only Ascendas India and PST have provided stable payouts and look likely to continue to do so. The reason is simple - Ascendas India owns freehold properties and maintains very low gearing of merely 18%. PST, on the other hand, is the only business trust to retain cash-flow from depreciation to repay loans and re-generate (and grow) its equity. MIIF and TCT has started buying back units from open market. The former has repurchased 2.5% of its unit float while the latter has repurchased 1% of its unit float. This is unprecedented since Management doesn't benefit from increase in AUM (and fees) so it will be interesting to see where this will lead to. GIL and Cityspring launched a rights issue this year. GIL is doing so to build up its AUM and hopefully increase its DPU going forward with more astute investment decisions from its newly appointed Manager. Cityspring failure to carry out loan repayment since inception has return to haunt its B/S. At the moment, only the 3 shipping trust are repaying loans of which two (FSLT, RMT) are being forced to do so by the lending banks. MIIF underlying assets have a loan repayment profile and can be seen in its presentation slides.
In all, judging by their performance, it isn't very wise to purchase yield stocks when it is newly listed. Moreover, yield stocks (especially trust) should meet two basic criteria - i) Can they repay their loans independently ? ii) Can they replenish their asset base independently ? Look at this first before looking at the yield.
Disclaimer: Please verify the figures independently. There might be errors in the data/computation.
(Not Vested in any business trust)
Ascendas India Trust
IPO Price: $1.18 (IPO’ed in 2H 07)
Current Price: $0.95
Dividends Declared: $0.2776
Net Loss: $0.0476
Net Gain Percentage: 4.03%
CitySpring
IPO Price: $0.89 (IPO’ed in early 2007)
IPO Price after adjusting for 1 for 1 rights @ $0.48: $0.685
Dividends Declared: $0.1583 (pre rights) & $0.0525 (post rights)
Dividends Declared adjusting for rights: $0.15265
Current Price: $0.495
Net Loss: $0.03735
Net Loss Percentage: 5.45%
First Ship Lease Trust
IPO Price: US$0.98
Dividends Declared: US$0.3167
Current Price: US$0.2845 (using current exchange rate)
Net Loss: US$0.3788
Net Loss Percentage: 38.7%
India Bulls Properties Investment Trust
IPO Price: $1.00 (June 2008)
IPO Price after adjusting for 53 for 100 rights @ $0.16: $0.709
Dividends Declared: 0
Current Price: $0.19
Net Loss: $0.519
Net Loss Percentage: 73.2%
K-Green Trust
IPO Price: $1.11 (based on 1st day closing price in June 2010)
Dividends Declared: 0.0431
Current Price: $1.075
Net Gain: $0.0081
Net Gain Percentage: 2.7%
Pacific Shipping Trust
IPO Price: US$0.45 (IPO’ed in 2H 2006)
IPO Price Adjusting for offer of 3 for 4 @ USD 0.365: US$0.414
Dividends Declared: US$0.099253 (pre rights) & US$0.07533 (post rights)
Dividends Declared (adjusting for rights): US$0. 0.148226
Current Price: US$0.36
Net Gain: US$0.094226
Net Gain Percentage: 22.7%
Rickmers Maritime Trust
IPO Price: US$1.00
Current Price: US$0.329 (current exchange rate)
Dividends Declared: US$0.21354
Net Loss: US$0.45746
Net Loss Percentage: 45.7%
Treasury China Trust
IPO Price: $1.76 (based on 1st day closing price)
Dividends Declared: $0.050
Current Price: $1.945
Net Gain: $0.235
Net Gain Percentage: 13.3%
MIIF
IPO Price: $1.00 (2005)
Current Price: $0.57
Dividends Declared: $0.364
Net Loss: $0.066
Net Loss Percentage: 6.6%
Global Investment Limited
IPO Price: $1.06
IPO Price Adjusting for offer of 2 for 5 @ $0.138: $0.7965
Dividends Declared: $0.1459 (adjusted for rights)
Current Price: $0.158
Net Loss: $0.4926
Net Loss Percentage: 61.8%
HPH Trust
IPO Price: US$1.01
Dividends Declared: 0
Current Price: US$0.85
Net Loss: $$0.16
Net Loss Percentage: 15.8%
Treasury China Trust is the only business trust trading above its IPO price. It, together with PST, are the only ones which provided meaningful returns to unit-holders since it IPO. The rest failed to do so due to a multitude of reasons. In terms of DPU payouts and sustainability, I would say that only Ascendas India and PST have provided stable payouts and look likely to continue to do so. The reason is simple - Ascendas India owns freehold properties and maintains very low gearing of merely 18%. PST, on the other hand, is the only business trust to retain cash-flow from depreciation to repay loans and re-generate (and grow) its equity. MIIF and TCT has started buying back units from open market. The former has repurchased 2.5% of its unit float while the latter has repurchased 1% of its unit float. This is unprecedented since Management doesn't benefit from increase in AUM (and fees) so it will be interesting to see where this will lead to. GIL and Cityspring launched a rights issue this year. GIL is doing so to build up its AUM and hopefully increase its DPU going forward with more astute investment decisions from its newly appointed Manager. Cityspring failure to carry out loan repayment since inception has return to haunt its B/S. At the moment, only the 3 shipping trust are repaying loans of which two (FSLT, RMT) are being forced to do so by the lending banks. MIIF underlying assets have a loan repayment profile and can be seen in its presentation slides.
In all, judging by their performance, it isn't very wise to purchase yield stocks when it is newly listed. Moreover, yield stocks (especially trust) should meet two basic criteria - i) Can they repay their loans independently ? ii) Can they replenish their asset base independently ? Look at this first before looking at the yield.
Disclaimer: Please verify the figures independently. There might be errors in the data/computation.
(Not Vested in any business trust)
Disclaimer: Please feel free to correct any error in my post. I am not liable for anything. Do your own research and analysis. I do NOT give buy or sell calls and stock tips. Buy and sell at your risk. I am not a qualified financial adviser so I do not give any advice. The postings reflects my own personal thoughts which may or may not be accurate.