Far East H trust IPO

The final prospectus has been logged.
LINK:
http://info.sgx.com/webipo.nsf/a550a7e7a8393629482578f6002916ce/3b5ac092af1041ae48257a5d0012f0ea/$FILE/Far%20East%20HospitalityTrust%2016%20August%202012.pdf

The indicative timetable is as follows:


My thoughts on the IPO:

Yield:
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.

Price/book
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.

Gearing
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

Disadvantages:

•  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.

Far East H-Trust lodges preliminary prospectus indicating S$656m IPO

Far East H-Trust lodges preliminary prospectus indicating S$656m IPO. The IPO price range is $0.86 to $0.93. Far East H-Trust consists of a real estate investment trust and a business trust. The projected yield is 6-6.5%


Source:
http://www.channelnewsasia.com/stories/singaporebusinessnews/view/1217790/1/.html

The trust consists of the following properties:

Other info:
Distribution policy:
Far East H-REIT’s distribution policy is to distribute 100.0% of Far East H-REIT’s Taxable Income for the Forecast Period 2012 and Projection Year 2013 and at least 90.0% ofits Taxable Income thereafter. The distribution will be made on a quarterly basis for the three-month periods ending 31 March, 30 June, 30 September and 31 December. Distributions, when paid, will be in Singapore dollars.

Gearing: 30.4%

The exact dates for the IPO are not finalized as of now. But investors can take a look at the preliminary prospectus here:
http://masnet.mas.gov.sg/opera/sdrprosp.nsf/0/91361ad5085a4b3648257a4f002de99b?OpenDocument

AH trust balloting ratios

AH trust balloting ratios are as follows:

AH trust will be commence trading on the 27th July (this Friday) at 2pm. Goodl uck to those who are allocated some shares!

IHH balloting ratios

IHH balloting results for Singapore are out. The ratios are as follows:

The final retail price is finalized at $1.113 per share. The original application price was $1.18.

Applicants will see a refund of $0.067 for the allocated shares and the $1.18 for those shares not allocated. IHH will be listed on 25th July 2012. Good luck to those who are allocated some shares. =)

2.1 million Singaporeans to receive GST vouchers

About 2.1 million Singaporeans will be receiving cash handouts, utility rebates and Medisave top-up in the next 2 months.

See article:
http://www.straitstimes.com/BreakingNews/Singapore/Story/STIStory_816994.html

Some may be curious on how much they / their families will be getting. The amount is very much dependent on
1) assessable income
2) flat type
3) age

The breakdown are as follows as provided on the http://www.gstvoucher.gov.sg/ website:

 

You can also go to http://www.gstvoucher.gov.sg/ and login using your Singpass or one-time pass to check how much GST vouchers you are eligible for this July's payout.