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Presume viva' s small bubble is considered good.
marubozu1688 ( Date: 21-Oct-2016 23:02) Posted:
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Halted pending announcement.
Viva Industrial Trust in Singapore REIT Bubble charts.
http://mystocksinvesting.com/singapore-reits/bubble-charts/singapore-reit-stock-shortlisting-bubble-charts-october-2016/
VIT has announced a distribution of 1.810 Singapore cents per Stapled Security for the period from 1 July 2016 to 30 September 2016, comprising a taxable income of 1.497 Singapore cents per Stapled Security and a tax-exempt income of 0.313 Singapore cents per Stapled Security from Viva Industrial Real Estate Investment Trust (?VI-REIT?). There is no distribution from Viva Industrial Business Trust (?VI-BT?) as VI-BT is still dormant.
Ex Div 2 Nov.
Remarks Not enticement to buy or sell. Pls DYODD.
Ex Div 2 Nov.
Remarks Not enticement to buy or sell. Pls DYODD.
Not all business trusts and REITS are bad. They do face pressure in conserving cash to fund their growth and asset enhancement needs. This is because most of their net income is distributed to their unitholders as distributions. Thus, raising cash is important for them due to their business model. Periodic rights issues, private placements and bank loans are part and parcel of the process of raising cash to fund their growth and asset enhancement needs. Of course, they can recycle their capital by selling assets (or properties) which have either reached the end of their potential (no more potential for seeing attractive growth in property rental yields through any asset enhancement initiatives) or assets which have become significantly over-valued (at a particular time) for a capital gain. But some assets are very difficult or not possible to dispose off due to regulations/ agreements pre-signed preventing their disposal before a certain period of time. Also, some assets (or properties) are just not attractive at all due to various reasons (location of assets, nature of assets, age of assets, etc.)
We have to see whether which business trusts and REITS can manage their assets yields and capital allocation and recycling well. Those that can manage these well and do not often raise much equity (e.g. rights issues) and bank loans to fund their working capital, growth and asset enhancement initiatives are the good ones out there. In doing so, their unitholders do not face the problem of giving back their distributions collected. However, a business trust or REIT that engages in frequent cash raising exercises will erode the unitholders' distribution yield over time and yields of under-performing business trust and REIT can be as low as 1 to 3 % which makes no sense for a unitholder to invest in the business trust and REIT since such vehicles carry higher risk and should provide greater yield to compensate their risks. If the yield is so low, an investor might as well invest in fixed deposits with banks which is safer and provide the same amount of low yield of 1 to 3 % approximately or better still leave the money parked in CPF retirement account which currently provides 4,5% interest per annum.
investshare ( Date: 21-Jan-2016 13:51) Posted:
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Viva Industrial Trust yield at 9.02%
http://mystocksinvesting.com/singapore-reits/singapore-reit-fundamental-analysis-comparison-table-9-october-2016/
VIT has announced a distribution of 1.750 Singapore cents per Stapled Security for the period from 1 April 2016 to 30 June 2016, comprising a taxable income of 1.466 Singapore cents per Stapled Security and a tax-exempt income of 0.284 Singapore cents per Stapled Security from Viva Industrial Real Estate Investment Trust (?VI-REIT?).
Ex Div 2 Aug, Payable 29 Aug.
Ex Div 2 Aug, Payable 29 Aug.
Singapore REIT comparison using Bubble Charts for VIVA Industrial Trust.
http://mystocksinvesting.com/singapore-reits/bubble-charts/singapore-reit-stock-shortlisting-bubble-charts-july-2016/
From Maybank KE
Long term leases to minimise earnings cyclicality.
Viva has six properties in Singapore: two business parks at 72% of 1Q15 revenue, two factories (15.9%), one hotel (at 9.9%), and one warehouse (2.2%). Total NLA is 2.3m sf with a gross development value of SGD850m. With a weighted average land lease of 40.6 years and 69% of income locked in with rental support and longterm master leases, market views Viva as a defensive play through late 2018 amidst the backdrop of a glut in industrial capacity.
With potential growth to boot Management has updated that planned asset enhancement at Technopark @ Chai Chee (31% revenue), will help anchor FY16 DPS growth. AEI will entail conversion of under-utilized carpark and business-park space into retail space. An anchor tenant agreement has since been signed with Decathlon, a global sports innovator and retailer. With AEI expected to complete by 4Q15, management believes that Technopark?s retail space and improved facilities will also have the potential to lift business-park occupancy as well as rental reversions.
FY16-17 yields could expand to 9.0-9.9%
A SGD70m fund-raising exercise is expected in the near future. Even if we factor in potential dilution, investors could be looking forward to yields expanding from the current 8.4% in FY14 to 9.0- 9.9% range by FY16-17 ? this compares favourably against the current industrial SREIT sector of 6.5%. From FY19 onwards, yields are likely to dip to 9.0-9.3% as rental support for UE Biz Hub East ceases.
Long term leases to minimise earnings cyclicality.
Viva has six properties in Singapore: two business parks at 72% of 1Q15 revenue, two factories (15.9%), one hotel (at 9.9%), and one warehouse (2.2%). Total NLA is 2.3m sf with a gross development value of SGD850m. With a weighted average land lease of 40.6 years and 69% of income locked in with rental support and longterm master leases, market views Viva as a defensive play through late 2018 amidst the backdrop of a glut in industrial capacity.
With potential growth to boot Management has updated that planned asset enhancement at Technopark @ Chai Chee (31% revenue), will help anchor FY16 DPS growth. AEI will entail conversion of under-utilized carpark and business-park space into retail space. An anchor tenant agreement has since been signed with Decathlon, a global sports innovator and retailer. With AEI expected to complete by 4Q15, management believes that Technopark?s retail space and improved facilities will also have the potential to lift business-park occupancy as well as rental reversions.
FY16-17 yields could expand to 9.0-9.9%
A SGD70m fund-raising exercise is expected in the near future. Even if we factor in potential dilution, investors could be looking forward to yields expanding from the current 8.4% in FY14 to 9.0- 9.9% range by FY16-17 ? this compares favourably against the current industrial SREIT sector of 6.5%. From FY19 onwards, yields are likely to dip to 9.0-9.3% as rental support for UE Biz Hub East ceases.
Viva quarterly dividend for 1Q2016 is 1.638 cents (c.f. 1Q2015 div of 1.87 cents).
Revenue and distributable income increased but there is an enlarged share base now hence DPU per unit decreased.
Revenue and distributable income increased but there is an enlarged share base now hence DPU per unit decreased.
That' s true. Hardly anyone took up the Viva rights issue because trading price was below offer price - their equity was definitely affected. A certain majority shareholder had to gobble up all the units on offer.
investshare ( Date: 21-Jan-2016 13:51) Posted:
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For Trust and REIT, better avoid now, not so much because the price will drop due to high interest rate, but they will issue new shares for capital, so you need to prepare to fork out more.
ambally ( Date: 21-Jan-2016 13:40) Posted:
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Anyone loading up at this price? Yield nearing 10% and roughly 20% discount right now.
Or do you think there' s still room to drop?
Preferential Rights Offerings results out. Looks like Mr Tong has to gobble another 23,843,191 New Stapled Securities on top of its provisional allotment of 55,305,998 New Stapled Securities (total 79,149,189) at 71.5 cents where now you can get from market at a price of 69 cents.
Wrong timing for aquisition and wrong time to ask shareholders for money. Complete
destruction of value by amateurish decisions. Some recent investors got in at 78 cents.
I am quite worry since the issue volume is double that in June
Probably want Mr Tong (Controlling Shareholder) to makan the rest of the stapled securities that he has not rights to as he has a firm commitment to mop it up.
sgtowkayneo ( Date: 04-Dec-2015 15:03) Posted:
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It appears that the offer price is 0.715. Why would anyone subscribe to it whence you can trade at 0.71 now? Am I missing something? I am new to these rights stuff.
Unfortunately this is common problem with rights subsription for SRS account. The safest is to hand deliver the form at CDP or whatever address on the form.