Wednesday, May 19, 2010


Basically, this is another undervalued gem in my opinion, in the leagues of Saizen.
My earlier write up of this REIT is here

The results was a nice surprise for me in terms of the DPU. It was slightly above my expectations. Earlier, I bought based on a conservative estimate of 0.45 cts DPU, although my calculations showed at least 0.5 cts DPU. The surprise was that DPU came out to be 0.5376 cts, giving me a nice dividend of $241.92 for 45 lots payable in June 2010.

This works out to be about 10% yield based on my entry price of 0.215 on a low gearing of 29%, among the lowest in the industrial REIT sector.

The NAV remains at 31c. There's also no management fee bonus paid out ==> it's only paid when the DPU increases by at least 2.5%. Have to monitor to check that management does not increase gearing unnecessarily and dangerously to increase DPU so as to get fee bonus.

This is a short post to update as I'm really really tied up with work these few weeks :(


  1. Hi JW,

    You take care and pop those Vit C pills, k? :)

    I did a short FA + TA on this REIT last Friday:


    I would accumulate on weakness. :)

  2. Hi AK,

    thanks! I didn't accumulate some more at 21c when it went down that fateful day as I wanted to increase my cash level first :p

  3. Hi JW,

    Maybe we could get more at 20.5c! Haha ;-p

  4. Hehe, really got it at 20.5c :)

  5. Haha... Yah, really got it at 20.5c. :)


Please Comment >>