05-09-2018, 09:03 AM
That's true, and that's why I am not vested. For a brief period of time I was deliberating whether to take a stake after all the chain of events from Activist Speaks to ESR upping stake in Sabana and talks between ESR-Sabana. With the share issuance mandate given back to the manager, all such thoughts were dismissed and I am happy to watch this REIT from far - it's realtime comedy.
The DPU might be propped up temporarily with fees paid in units, so headline yield looks gr8. But eventually the rise in units just means further dpu dilution+ nav drops further down the road. It's just a matter of time before another equity fund raising exercise - be it rights or placement to buy another property. I suppose there will be a spin in the future with the announcement of "VIBRANT GROUP ENTERS STRATEGIC PARTNERSHIP TO SUPPORT MAJOR CHINA LOGISTICS PLAYER IN ITS FIRST FORAY OVERSEAS"
http://infopub.sgx.com/FileOpen/Press%20...eID=523313
Nonetheless this is still set to look interesting - ESR's next moves after gobbling Viva will be closely watched.
The DPU might be propped up temporarily with fees paid in units, so headline yield looks gr8. But eventually the rise in units just means further dpu dilution+ nav drops further down the road. It's just a matter of time before another equity fund raising exercise - be it rights or placement to buy another property. I suppose there will be a spin in the future with the announcement of "VIBRANT GROUP ENTERS STRATEGIC PARTNERSHIP TO SUPPORT MAJOR CHINA LOGISTICS PLAYER IN ITS FIRST FORAY OVERSEAS"
http://infopub.sgx.com/FileOpen/Press%20...eID=523313
Nonetheless this is still set to look interesting - ESR's next moves after gobbling Viva will be closely watched.