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Cache Logistics Trust
13-09-2017, 06:50 PM,
Post: #71
RE: Cache Logistics Trust
On a slightly tangential note, I am not sure if any value buddies have noticed this.

Among the REITs paying dividends, there are three different payments per unit every quarter.

Using Cache as an example, for the latest quarter, there is

.00286 per unit, which is tax exempt
.00013 per unit and
.01501 which is taxable.

Now, interestingly, if you have 1000 units, then the dividend is 18 SGD and you will get exactly 18 SGD in your CDP, CPF or SRS account, depending on which you hold the units.

However, if you have 900 units, or any number of units, which is not a multiple exactly of 1000 units, you will get less than your entitlement.

For example, if you have 900 units, your actual dividend is SGD 16.2, but you will actually receive only 16.18.

Looking at the cash amounts paid out by the REITs, they are debited the exact amount i.e. SGD 16.2

That means that your holding bank is actually benefiting to the tune of SGD 0.02 per SGD 16.2.

This does seem small i.e. 0.12% and is probably not really a major factor for most investors.

However, if you aggregate it across the REIT base and total distribution, it means the holding entity (SRS Bank, CPF Bank, CDP Bank) will benefit, if you hold a REIT in multiples which are not exact 1,000 unit multiples.
Disclaimer :-

I am not an investment professional.

I encourage you to do your own independent "due diligence" on any idea that I write about, because I could be and probably am wrong.

Nothing written here is an invitation to buy or sell any particular stock.

At most, I am handing out an educated guess as to what the markets may do.

The market will always find a new way to make a fool out of me (and maybe, even you!).

Even the best strategies of the past fail, sometimes spectacularly, when you least expect it.

I am not immune to that, so please understand that any past success of mine will probably be followed by failures

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15-09-2017, 01:00 AM,
Post: #72
RE: Cache Logistics Trust
(13-09-2017, 06:50 PM)Shrivathsa Wrote: On a slightly tangential note, I am not sure if any value buddies have noticed this.

Among the REITs paying dividends, there are three different payments per unit every quarter.

Using Cache as an example, for the latest quarter, there is

.00286 per unit, which is tax exempt
.00013 per unit and
.01501 which is taxable.

Now, interestingly, if you have 1000 units, then the dividend is 18 SGD and you will get exactly 18 SGD in your CDP, CPF or SRS account, depending on which you hold the units.

However, if you have 900 units, or any number of units, which is not a multiple exactly of 1000 units, you will get less than your entitlement.

For example, if you have 900 units, your actual dividend is SGD 16.2, but you will actually receive only 16.18.

Looking at the cash amounts paid out by the REITs, they are debited the exact amount i.e. SGD 16.2

That means that your holding bank is actually benefiting to the tune of SGD 0.02 per SGD 16.2.

This does seem small i.e. 0.12% and is probably not really a major factor for most investors.

However, if you aggregate it across the REIT base and total distribution, it means the holding entity (SRS Bank, CPF Bank, CDP Bank) will benefit, if you hold a REIT in multiples which are not exact 1,000 unit multiples.

How is 16.18 calculated? Isn't it just (900 x 0.018) for 900 units?

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15-09-2017, 10:12 AM,
Post: #73
RE: Cache Logistics Trust
(13-09-2017, 06:50 PM)Shrivathsa Wrote: That means that your holding bank is actually benefiting to the tune of SGD 0.02 per SGD 16.2.

This does seem small i.e. 0.12% and is probably not really a major factor for most investors.

However, if you aggregate it across the REIT base and total distribution, it means the holding entity (SRS Bank, CPF Bank, CDP Bank) will benefit, if you hold a REIT in multiples which are not exact 1,000 unit multiples.

There are 11,057 unitholders as of 1 Mar 2017. Assuming all are not rounded to 1000 shares, the gain by holding entity is $0.02 X 11,057= $221.14

Be careful of extrapolation of 0.12% Smile
Before you speak, listen. Before you write, think. Before you spend, earn. Before you invest, investigate. Before you criticize, wait. Before you pray, forgive. Before you quit, try. Before you retire, save. Before you die, give. –William A. Ward

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