Cityspring Infrastructure Trust

[momoeagle]

Same here shuoyanz. I'm lucky I got it during the 09 era.

But to answer you, to the best of my memory,
1) Cityspring reports net loss because their depreciation is high. Their cash flow is still positive. The only worry now becomes what happen after the assets are fully depreciated...

2) think there are some info on loans on their AR. Can't really remember but hey temasek owns a huge chunk of it

3) there's NAV. Also could be found on reitdata

4) Personally I think if you have it already just keep it for the dividends for now unless u have a better use or a need for the cash.

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[shuoyanz]

Thanks momoeagle!

What do you think will happen when assets are fully depreciated? I am not very sure of what the majority of their asset value comes from. If they are in the form of gas and water pipes, I thought it would be gradual replacement/upgrading rather than having to replace all at one go.

At least one consolation is that they have been saving up some cash over the past few years.

[kayhian]

My computer has depreciated to zero value (in accounting terms).

But I am still using it to trade and make money

If you were to reinvest all your dividend into cityspring.

The compound effect would be impressive

[greengiraffe]

http://www.businesstimes.com.sg/premium/...e-20140701

PUBLISHED JULY 01, 2014
CitySpring in JV to develop and lease data centre
BYANDREA SOH
sandrea@sph.com.sg @AndreaSohBT

CITYSPRING Infrastructure Trust is forming a joint venture with architectural and engineering firm Shimizu Corporation to develop and lease a data centre, as it seeks to deepen its presence in telecommunications infrastructure.
The joint venture, in which its wholly owned subsidiary CityDC Pte Ltd will hold a 51 per cent stake, will design and build a data centre building and install all plant, mechanical and electrical equipment.
When the development works are completed and the data centre is ready for use, the joint venture will then lease the building to 1-Net, which is wholly owned by MediaCorp Pte Ltd.
Explaining the reason for the joint venture, City-Spring said that demand for data centre space has been growing more quickly than supply. "The data centre industry, both worldwide and in Singapore, has been growing steadily over the recent years as a result of growing Internet penetration into the consumer and corporate market," said

[Shrivathsa]

This trust is far from a value play. My guess as to why it is trading at 48 cents now is probably a rights issue is coming soon. woohoo!!!

If it is a Rights issue, a good idea would be to buy token amount and apply for excess rights, soak up the selling pressure and sell back when it hits 50 cents.

The last time it had rights, it fell to 0.33 something, rights was at 0.39 and then slowly recovered to 0.5.

Of course, things could be different now.

[shuoyanz]

Hello all

I attended the AGM today and asked one of the directors about possible rights issue.

He assured that they had a large cash horde of around $300 million, and would only issue shares/rights if they were expanding.

[opmi]

Business trust can hold so much cash one meh? I thought must pay out to get tax exemption?

[Porkbelly]

I think Reits MUST distribute at least 90% of income to enjoy tax exemption.

Business trusts are not required to, but may pledge to pay out dividends from cash flows.

[Shrivathsa]

Just noticed that Cityspring has been excluded from the small cap index according to the FTSE Semi Annual Index report

[Shrivathsa]

I had written to the IR, Their reply is

"Thank you for getting in touch with us.

CitySpring was not included in the ST Fledgling Index as our market capitalisation exceeded the index’s eligibility criterion.

Following the latest FTSE Index review effective from 22 Sep, we are not listed in the ST Indices at the moment.

Our commitment to our shareholders remains the same - to deliver long-term results through our strategy of building up a sustainable and resilient cashflow from essential services.

We would like to take this opportunity to thank you for your support, as we look forward to another exciting year ahead.

Thank you
Investor Relations@CitySpring"

My take is that there are significant number of index linked holders of Cityspring, for example, ETFs like EWSS which hold them.

One is likely to see them selling out by 22nd September leading to price weakness. (Force Selling as they cannot hold securities not in the Index)

Might be a good time to pick it up if one believes the overall Cityspring story.