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Same here. Took profit and moved on after annoucement of the dilutive deal. However, the deal will actually make their income stream more stable (diversified) and still have room for growth (properties in Spain still have rents below market rate). So might still be worth a look after the dust had settled on the rights issue.
angmohlin ( Date: 19-Sep-2020 16:02) Posted:
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I opine that someone purposely to push up the price to 73 cents to show and to induce that the rights issue 32.9% discount from the last closing price before announcement. So from Monday onward the price may drop back to 69.5/69 cents. After all, this is not a DPU yield accretive rights issue. DYODD.
The price of rights issue of $0.49 is 5.15% higher than the illustrative price of $0.466 in the last announcement. The aforesaid acquisition are not DPU yield accretive to existing unitholders but will only benefits the 3 substantial unitholders. Have sold off my holding.
Anyone see the announcements?
Rights at 0.49/unit
454 rights for every 1000 units
Would u all be participating?
Mid & long term moving averages pointing down, may drop back to 69 again.
Technically 71 is a resistance level. Support turns resistance with 50% retracement.
The annualised DPU yield accretion drop from 8.1% to 7.2% a 11.7% drop after the acquisition, then what benefit to acquire the balance of 60%. Make no sense and who want to subscribe the rights issue. My 2 cents.
69 should be very strong support from technical point of view. Resistance turns support. It is important for the Manager & major unitholders to support the price otherwise no one want to subscribe the right issue,
71 cents? How about in the 40s during March? 
Thats approx 13% yield.
Thats approx 13% yield. Secret_Squirrel ( Date: 17-Aug-2020 16:37) Posted:
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PhillipCapital downgrades iREIT Global to ' neutral' on rights issue to fund acquisition
PhillipCapital analyst Tan Jie Hui has downgraded iREIT Global to &ldquo neutral&rdquo from &ldquo accumulate&rdquo with a lower target price of 68 cents from 76 cents previously.
While the REIT posted stable results for 1H20, it was offset by the weaker exchange rates between the Euro and the Singapore dollar. To that end, iREIT Global declared 2.7% y-o-y lower distribution per unit (DPU) for the same period.
The REIT&rsquo s occupancy rate improved q-o-q to 95.7% from 94.7%, with a weighted average lease expiry (WALE) of 3.7 years. Some 95.9% of the REIT&rsquo s leases were also locked in till 2022.
However, Tan says the revised recommendation came on the back of the REIT&rsquo s rights issue to fund its acquisition and repay loans is dilutive to the REIT&rsquo s DPU and net asset value per share (NAVPS).
On August 7, iREIT Global announced that it will be issuing 281.8 million new Rights Units to raise an estimated &euro 90 million ($140.9 million). The money raised will be used to fund the proposed acquisition (of some &euro 49.1 million), and repay the &euro 32 million term loan facility granted by City Developments Limited.
The acquisition, according to iREIT, is expected to be completed in 4Q20.
Looking at the data based on 1H20&rsquo s numbers, Tan says the DPU for the enlarged portfolio is estimated to decline by 18.9% to 2.31 cents from 2.85 cents.
NAVPS for the enlarged portfolio is also expected to decline by 14.5% to 47 Euro cents from 55 Euro cents.
&ldquo Amid the looming recession, the take-up in office space and investment activity in Europe is expected to slow down in 2020. However, office rents where IREIT&rsquo s properties are located are not expected to be significantly affected due to strong local fundamentals e.g. low vacancy rates and lack of supply,&rdquo says Tan.
&ldquo iREIT&rsquo s portfolio has remained resilient with majority of the leases supported by blue-chip tenants. The impending acquisition will increase and diversify iREIT&rsquo s asset and tenant base, and mark what we believe to be the beginning to iREIT&rsquo s growth plans now that it is backed by supportive stakeholders. It has been a rough start to growth, but growth nonetheless,&rdquo she adds.
On the downgrade and lowered target price, Tan says that her target price &ldquo translates to a FY20e distribution yield of 6.9% and a total upside of 0.8%&rdquo .
&ldquo We factored in for the &euro 90 million rights issue to fully fund the acquisition and repay the CDL loan,&rdquo she writes in a report dated August 13.
Today up 1.5 cents , now at 74.5 cents. Those who bought at 71 cents when results are out must be smiling. But not much people bought at 71 cents 😓
marketuncle ( Date: 13-Aug-2020 17:05) Posted:
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Downgraded as expected on dilutive deal.
https://research.sginvestors.io/2020/08/ireit-global-phillip-securities-research-2020-08-13.html
https://research.sginvestors.io/2020/08/ireit-global-phillip-securities-research-2020-08-13.html
Presumable subscribe or not to it.
Seems they have thrown a figure like 50 cents.
But wait for the rights announcement itself.
Seems they have thrown a figure like 50 cents.
But wait for the rights announcement itself.
anyone knows what are we the shareholders supposed to do for this Rights issue?
DPU payment on 27 Aug 2020 at the end of the results. All lump into the half year report
Joelton ( Date: 11-Aug-2020 09:00) Posted:
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IREIT exercises call option for Spanish office buildings, plans rights issue
On Aug 7, IREIT Global&rsquo s manager announced it plans to exercise the call option to acquire the 60% of four Spanish properties it does not own from Tikehau Capital, for around &euro 47.8 million. The transaction is subject to unitholders approval where the major unitholders City Developments and Tikehau Capital cannot vote.
On Dec 7, 2019, IREIT partnered with Tikehau Capital and City Developments (CDL) to acquire 100% interest in the Spanish portfolio comprising four freehold multi-tenants office buildins in Madrid and Barcelona for &euro 136.4 million on a 100% basis. At the time, CDL extended a &euro 32.0 million loan to IREIT to fund its 40% investment.
To fund the transaction and to repay CDL, IREIT Global&rsquo s manager has announced a renounceable non-underwritten rights issue of new units in IREIT, to raise &euro 90 million. The ratio has not been announced but units will be issued to existing unitholders on a pro rata basis. Tikehau Capital, CDL and AT Investments have provided undertaking to subscribe for all of the rights units, with CDL (through City Strategic Equity Pte Ltd (CSEPL) and AT Investments taking up excess units. As a result of the undertakings provided by AT Investments, there may be a transfer of controlling interest in IREIT to AT Investments.
&ldquo The rights issue will be underwritten by the substantial shareholders which will take their pro rata share and excess rights. We&rsquo re trying to deliver a message of confidence to minority unitholders that the quality is good and the substantial unitholders are able to back this,&rdquo Louis d&rsquo Estienne d&rsquo Orves, CEO of IREIT Global&rsquo s manager.
The impact of the rights issue is both distribution per unit (DPU) and net asset value (NAV) per unit dilutive.
However, d' Estienne d' Orves, says the Spanish properties are under-rented, with a strong tenant base. &ldquo We are slightly below market rents in Spain and in Germany as well. We are in a safe position. The top two contributors representing 35% of the total income of the Spanish portfolio are DXC Technologies, listed on NYSE and Roche. We are able to add to the strong tenants in Germany and it&rsquo s very important to have these kind of [tenants] to pay rent,&rdquo he says.
The German portfolio comprises of campuses in Berlin, Bonn, Darmstadt, Mü nster and Munich where its largest tenants are Deutsche Telekom, Deutsche Rentenversicherung Bund, Allianz and ST Microelectronics.
The rights issue is likely to lower IREIT&rsquo s gearing ratio from 39% to 35%, giving it some debt headroom should opportunities arise. &ldquo In line with the strategy of looking at Western European countries excluding UK, [our focus is] Spain, Germany, France and Italy, making sure we&rsquo re in places where value remains stable,&rdquo d&rsquo Estienne d&rsquo Orves says.
IREIT Global reported a 1.4% y-o-y increase in 1H2020 net property income mainly to higher gross revenue from the new lease at Mü nster South Building which commenced in Jul 2019 and the positive effects arising from the finalisation of prior year&rsquo s service charge reconciliation. However, income available for distribution for 1H2020 fell marginally y-o-y to &euro 11.7 million translating into a 2.7% decline in DPU to 2.85 cents.
&ldquo The portfolio has been very resilient and valuation is at the same level as Dec 30 2019 thanks to tenants that pay rent and asset management initiatives. Overall we have increased NPI by 1.4% which reflects annualised DPU yield of 7.9%. We will be ale to distribute a DPU of 2.83 cents versus 2.93 cents a year ago,&rdquo d&rsquo Estienne d&rsquo Orves says.
As usual, minority shareholders get screwed by dilution.
Calmroom ( Date: 08-Aug-2020 16:36) Posted:
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In addition, IReit also announced its results for the first half ended June 30 on Friday.
The Europe-focused Reit&rsquo s distribution per stapled security (DPS) slipped 2.7 per cent to 2.85 Singapore cents from 2.93 Singapore cents a year ago. This represents an annualised distribution yield of 7.9 per cent based on IReit&rsquo s closing unit price as at the last trading day of Q2 2020.
Its distributable income remained stable year on year at 13 million euros, while net property income increased 1.4 per cent year on year from 15.4 million euros to 15.7 million euros.
The Reit collected over 98 per cent of the total rents in the months of April to June, despite the novel coronavirus outbreak and lockdown restrictions. Last month, IGG also extended about 95 per cent of its Spanish portfolio leases expiring in 2020.
With IReit&rsquo s proposed acquisition of the Spanish portfolio from Tikehau Capital, its geographical exposure to Spain will increase from 9 per cent to 19 per cent of its portfolio. The Reit&rsquo s portfolio will thus consist of five properties in Germany and four in Spain.
The proposed acquisition is expected to be completed by the fourth quarter of this year, subject to the approval of unitholders of IReit.
https://www.businesstimes.com.sg/companies-markets/ireit-to-take-full-ownership-of-spanish-portfolio-from-tikehau-capital-dps-at-285
The Europe-focused Reit&rsquo s distribution per stapled security (DPS) slipped 2.7 per cent to 2.85 Singapore cents from 2.93 Singapore cents a year ago. This represents an annualised distribution yield of 7.9 per cent based on IReit&rsquo s closing unit price as at the last trading day of Q2 2020.
Its distributable income remained stable year on year at 13 million euros, while net property income increased 1.4 per cent year on year from 15.4 million euros to 15.7 million euros.
The Reit collected over 98 per cent of the total rents in the months of April to June, despite the novel coronavirus outbreak and lockdown restrictions. Last month, IGG also extended about 95 per cent of its Spanish portfolio leases expiring in 2020.
With IReit&rsquo s proposed acquisition of the Spanish portfolio from Tikehau Capital, its geographical exposure to Spain will increase from 9 per cent to 19 per cent of its portfolio. The Reit&rsquo s portfolio will thus consist of five properties in Germany and four in Spain.
The proposed acquisition is expected to be completed by the fourth quarter of this year, subject to the approval of unitholders of IReit.
https://www.businesstimes.com.sg/companies-markets/ireit-to-take-full-ownership-of-spanish-portfolio-from-tikehau-capital-dps-at-285
Calmroom ( Date: 08-Aug-2020 16:36) Posted:
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The company has provided more details in its
SGX announcement yesterday.
I feel pages 26 - 27 need to be read carefully.
The virus situation in Spain bears watching too.
SGX announcement yesterday.
I feel pages 26 - 27 need to be read carefully.
The virus situation in Spain bears watching too.
Joelton ( Date: 08-Aug-2020 15:25) Posted:
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IReit to take full ownership of Spanish portfolio from Tikehau Capital, DPS at 2.85 cents for H1
IREIT Global on Friday announced its proposed acquisition of the balance 60 per cent interest of a Spanish portfolio from asset management and investment group Tikehau Capital, at an agreed market value of 136.4 million euro (S$221 million) on a 100 per cent basis.
The portfolio consists of four freehold multi-tenanted office properties located in Madrid and Barcelona. It is currently held through a 40:60 joint venture by IReit and Tikehau Capital.
Last December, IReit partnered with Tikehau Capital and City Developments Limited (CDL) to acquire 100 per cent interest in the Spanish portfolio. CDL&rsquo s wholly owned subsidiary, City Strategic Equity, extended a 32 million euro loan to IReit to fund its 40 per cent investment.
As part of the transaction, Tikehau Capital had granted IReit a call option to acquire its 60 per cent shares in the joint venture within 18 months following completion of the initial acquisition.
IReit on Friday exercised the call option to acquire Tikehau Capital&rsquo s 60 per cent share. The purchase consideration, which is subject to post-completion adjustments, is 47.8 million euros, derived based on the consolidated net asset value of the joint venture as of June 30 this year, after taking into account the average of two independent valuations of the portfolio.
Louis d&rsquo Estienne d&rsquo Orves, chief executive of IReit Global Group (IGG), said: &ldquo The proposed acquisition allows IReit to achieve full ownership of a high-quality office portfolio. It is also in line with our strategy of building and strengthening IReit&rsquo s footprint across Europe.
&ldquo These properties offer attractive asset management opportunities while benefiting from the decentralisation trend driven by improved infrastructure, lower rents and limited supply in the CBD.&rdquo
In addition, IReit also announced its results for the first half ended June 30 on Friday.
The Europe-focused Reit&rsquo s distribution per stapled security (DPS) slipped 2.7 per cent to 2.85 Singapore cents from 2.93 Singapore cents a year ago. This represents an annualised distribution yield of 7.9 per cent based on IReit&rsquo s closing unit price as at the last trading day of Q2 2020.
Its distributable income remained stable year on year at 13 million euros, while net property income increased 1.4 per cent year on year from 15.4 million euros to 15.7 million euros.
&ldquo It&rsquo s thanks to picking (and) acquiring assets with strong tenants &hellip That&rsquo s really something we&rsquo ve been extremely careful of, and we picked assets where we know that the tenants will pay the rent,&rdquo said Mr d&rsquo Estienne d&rsquo Orves of IReit&rsquo s H1 results.
The Reit collected over 98 per cent of the total rents in the months of April to June, despite the novel coronavirus outbreak and lockdown restrictions. Last month, IGG also extended about 95 per cent of its Spanish portfolio leases expiring in 2020.
With IReit&rsquo s proposed acquisition of the Spanish portfolio from Tikehau Capital, its geographical exposure to Spain will increase from 9 per cent to 19 per cent of its portfolio. The Reit&rsquo s portfolio will thus consist of five properties in Germany and four in Spain.
The proposed acquisition is expected to be completed by the fourth quarter of this year, subject to the approval of unitholders of IReit.
&ldquo We will continue to actively explore different avenues to increase the occupancy rate and optimise the Spanish portfolio for future income improvement,&rdquo said Mr d&rsquo Estienne d&rsquo Orves.