MacArthurCook reit

MI-REIT is rising from the ashes. The recapitalisation plan, though unpopular, will reduce its gearing level to 29% and meet all of its financial obligations by year end. It is on track to being upgraded by rating agencies which might attract institutional investors. At 21c, the proforma yield is about 10% which is not bad at all. NAV is at 34c. Current price is not a bargain but it is a fair price. I have some bought at prices I would rather forget. However, given the stronger position after recapitalisation, my confidence in MI-REIT is renewed. Bought more at 20.5c yesterday. If the price declines further, I would accumulate. This counter will contribute to a stable, passive income stream for unitholders now.

the recapitalisation is at the expense of the current unitholders. does this means loyalty does not pay? is it big fish eats small fish ? the loyal unitholders were not offered the chance to buy more units at 28cts. AMPS and Cornerstone fund bought them at 28 cts when mkt is around 35 to 40 cts. previously, unitholders have approx 21 pct yield. now, unitholders will have approx 10 pct yield. it was rumoured that it was a scam. previously, it was 40 cts when NAV is 94 cts. mkt/nav = 42 pct. now , it is 20 cts when its new NAV is 31 cts mkt/nav = 65 pct. maybe, it shd be traded at around 17 cts where mkt/nav = 55 pct (just guessing with consideration of better financial structure) thus, it can go lower to around 17 cts. which concur with philip security report

I share the feeling that minority shareholders had a raw deal in MI-REIT\'s recapitalisation exercise. I didn\'t like it either. However, the concept of loyalty is rather quaint in the world of investments, isn\'t it? :huh: My holdings in FCOT, Cityspring, CCT, CIT and K-REIT have all seen dilution in various degrees through recapitalisation exercises whether it is rights issues or share placements. There are so many other examples in the market. I would rather be forward looking and assess MI-REIT\'s potential based on the current reality. If it goes lower to 17c, I would buy more as that would translate to a yield of 12.23%. With new gearing level at 29%, it would have some leeway to make acquisitions which would bolster its DPU in future.

My humble opinion, SGX should never have approved this plan but their hands are tied cos the Company played around the rules. What minority shareholders can do now, is to question the valuations of these properties that are being injected into the REIT and seek a fair value for these assets. I personally feel that the assets\' values are overinflated. Minority shareholders should seek a second opinion on these valuations.

I bought a large chunk of MI-REIT at 20.5c after the recap exercise. At that price, it gives a yield of about 10%. It\'s trading at about 30% below NAV. It has the lowest gearing amongst Singapore industrial REITs. Taken from Business Times\' article on the positive re-rating by Moody\'s: singaporeanstocksinvestor.blogspot.com/2...ustrial-reit-mi.html

Hongbao today from AIMS AMP (formerly known as MacArthurcook Reit): AIMS AMP Capital Industrial REIT Management Limited, as the manager (the “Manager”) of AIMS AMP Capital Industrial REIT (“AIMS AMPCI REIT”) is pleased to announce a Special Distribution of 0.95 cents per Unit, payable on 23 March 2010. Unitholders whose securities accounts with The Central Depository (Pte) Limited were credited with Units as at 5.00 p.m. on 30 November 2009 will be entitled to the Special Distribution. info.sgx.com/webcoranncatth.nsf/VwAttach...inal.pdf?openelement