Friday, August 24, 2012

Far East H trust balloting ratios

The balloting ratios are out as follows:

In general, there is about 40%-50% chance of balloting successfully. There are a total of 9563 successful applicants.

On the lower bands, the balloting results were some what similar to that of Ascendas Hospitality trust where the first band are allocated 1 lot and the second band are allocated 3 lots.
On the higher bands, we see a bigger difference as Far east hospitality trust is more heavily subscribed.

Looking at the highest band, 37 individuals applied for more than 1000 lots ($930,000 in value) successfully. Since 2/5 are successful, it works out to 92 or 93 individuals on this band. There are so many rich people out there.

The counter will open on 27th August at 2pm.

Related posts:
Far East H-Trust lodges preliminary prospectus indicating S$656m IPO  
Far East H trust IPO
AH trust balloting ratios

Far East H-Trust retail tranche 14.6 times subscribed

Far East H-Trust retail tranche 14.6 times subscribed. I think the results are pretty decent. Looking at Ascendas H trust, the retail tranche was only 5.9 times subscribed.

The balloting ratios should be out tonight. I will be updating the balloting ratios here when it is released. The far east h trust will list on SGX on the 27th August at 2pm. Good luck to those who applied. =)

Tuesday, August 21, 2012

AIMS DRP (Aug-Sept 2012)

Some time ago, I posted an article on the optimal number of units to apply:
AIMS DRP: The optimal number of units to apply?

In the article, I showed some calculations for investors to get the most out of the distribution reinvestment plan (DRP). It has been about 3 months since then and the DRP has been offered for the current quarter.

For the DRP this round,
DPU: $0.025
issue price: $1.2421
Last done price: $1.275

The amount of DRP units allocated can be calculated using the formula below:
N = (S * D) / V

N is the number of DRP units to be allotted and issued.
S is the number of participating units held participating in the DRP
D is the qualifying distribution per unit. In this case, it is 0.025
V is the issue price of the DRP unit. In this case it is 1.2421

N will be rounded down. Any fractional entitlements will be disregarded.

If you are intending to participate in this round's DRP, you may want to perform some calculations for your optimal number of units. I have provided the number of units required for participation in the DRP for the units you would like to get (in multiple of 50s) here:
number of units
units to take part in DRP

I will be participating in this quarter's DRP.

Sunday, August 19, 2012

Far East H trust IPO

The final prospectus has been logged.

The indicative timetable is as follows:

My thoughts on the IPO:

Far east H trust gives 6%.
Comparing to other hospitality trusts, CDL H trust gives 5.938% and Ascendas H trust gives 7.786%
I feel that the yield is a little low.

Far east H trust has a P/B of 1.
CDL H trust has a P/B of 1.21 and Ascendas H trust has a PB of 1.07
P/B looks good but P/B it is not a very important factor when investors looks at REITs or business trusts.

Far East H trust has a gearing of 30.2%
CDL H trust has a gearing of 25.2% and Ascendas H trust has a gearing of 34.3%
Gearing is on the average as compared to other hospitality trusts.

Other advantages:
  • strong potential pipeline for future acquistion
  •  This is a stapled security, not a 100% reit. This means that the business trust component do not need to give out at least 90% of its earnings as distributions. Any major reduction of the distribution will impact its yield and market value
  • Limited short term upside. The 0.93 IPO price is placed at the highest of its indicative price. Any upside in prices is limited by its yield.
Other notes:
In the investment tranche, the stapled security is 30 times over subscribed.

I will be applying for this. This will be for the long term as there shouldn't be much short term upside.
Good luck to those who are applying for this as well.