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With the scrip dividend, rights issue and change of dividend payout to an annual one.
It seems like GIL is aiming for a cash hoard for investments. Hopefully, these investments are yield accretive and beneficial to all unit holders.
The management did revive GIL. I pray the GIL management do not disappoint its unit holders.
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hm... in the beginning I was considering to buy GIL as a yield play, however with the scrip dividends it really makes no sense for me to take cash right? Since its definitely wiser to take shares at a discount.
For me, I generally buy stocks as an asset to improve my passive income, I do not wish to put more $$ in via rights issue and it doesn't give me a regular stream of income, so I have to pass this one, even though I think its a good counter to invest in.
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Let's look at the recurring FCF for 1Q2013 result:
Number of shares issued = 851,241,155 after issuance of the latest dividend scrips
FCF require to maintain annual DPU of SGD1.5 cent = SGD 12.8 million per annum or SGD 3.2 million per quarter (on average)
1Q 2013
Ops Cash-flow: SGD 2.848 million
Interest Exp: SGD 0.265 million
Debt Repayment: SGD 0.514 million
Recurring Cash-Flow: SGD 2.069
Dividend shortfall = (SGD 1.131 million), without taking into consideration of cash flow from gain on sale of investments
Add in cash-flow from gain on sale of Asia Listed Equities in 1Q2013 (= SGD 1.43 million) >> enough to cover the quarterly dividend contribution.
That is – still have to rely on gain on sale of investments to fund part of dividend payout – which in the long run is unsustainable. Investors would feel more comfortable and assured if the dividend payout could be fully funded from recurring FCF, without having to rely on contribution from any gain on sale of investments – but this is not happening.
FLY Leasing
I would not read too much into “gain” on sale of FLY shares as those “gain” were measured relative to the impaired net book value of around USD 4.3 per share. (Please refer to page 104, 105 of AR2012)
For FY2012 “gain”, SGD 2.105 million had been “reversed” – {see page 53 of AR2012 – other comprehensive income -Available-for-sale financial assets – reclassifications to profit or loss on disposal (net of income tax)}
Similarly, for 1Q2013 “gain”, there was a “reversal” of SGD 5.375 million (See page 8 of 1Q2013 results – other comprehensive income -Available-for-sale financial assets - Reclassification to profit or loss)
(Vested)
Research, research and research - Please do your own due diligence (DYODD) before you invest - Any reliance on my analysis is SOLELY at your own risk.
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The last I checked the Incentive Fee was tied to the Market Cap. Is it still the case?
So the score is now
Cityspring 2: Global Inv 3
Come on Cityspring!
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(07-05-2013, 09:28 AM)Gaudente Wrote: (07-05-2013, 12:20 AM)Boon Wrote: On the rights issue, it is a surprise. Wondering how the market will react?
with a sell off , of course 
In the 2012 Rights Issue (Issue Price of SGD 12.8 cents per share)
Share price dropped from SGD 15.8 cents over a period of time to as low as SGD 13.0 cents (-17.7%) prior to the listing of rights issue
2013 Rights Issue
Issue Price of SGD 14.3 cents per share
Day One : Share price dropped from SGD 17.0 cents to SGD 15.9 cents (-6.5%)
The answer to the easy part of the question – sell off, of course!
The harder part of the question : How low can it go this time?
Research, research and research - Please do your own due diligence (DYODD) before you invest - Any reliance on my analysis is SOLELY at your own risk.
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Just curious in its rights announcement, it mentions proceeds could be used to invest in :
(3) Equity or debt in companies with exposure to operating leases.
Do they mean companies that deal with renting out their property etc, Landlord counters, REITS etc?
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