Maybank actually only raise 3 cents up from 1.16 to 1.19. However, of the help from cmmt and sunreit's great marketting, reit gains a lot more attentions. Just wondering what could be a stable price for Arreit for now. 

I am a supporter of arreit since its day one listing. The price will up and up. Will stop when reach full valuation aka NTA or at a level 8 - 9 % return..beyong that very hard to hold longer..

AXREIT up another 2 cents to 2.17. I wonder if this interest could be caused by the latest distribution

fyi, I spotted a 1 batang push at the end of session on yesterday and today around 4:45pm. So, it's kind of a "fake" one, and people blind blind buying the upward price. 

Well, we won't know who are the ones doing the dirty work, but all is good. If it keeps going up beyond 2.20, I will start selling.

Also, one thing I hate about AXIS is that when the company raise money to acquire new properties, they do not offer the new shares to the existing share holders. I never was offered. Then when the “deal” is done, there is an increased in the number of total shares in the company with each new acquisition! How was the shares sold? A big question mark?

But i wanna buy below 2.08 

Just read one of the readers comment in a blog.....
I quote....
....UNQUOTE
What say you brothers & sister....your views please...thank you all.
Cheers to all....take care too on this festive days.

yok70,

Why buy so expensive? That price is almost fully valued.
monkeyking,

It is what we called private placement. The new shares were sold to selected institutional investors.

I think what monkeyking said is to give it for FREE. Since the profit for each unit has been diluted because of increment of units, the company suppose to give for free to existing holders such as free BI or RI offers to shareholders on good performing ordinary stocks.

And ya, I also quite piss off as so far I see ALL reits don't give free gifts to shareholders. 

I think what monkeyking said is to give it for FREE. Since the profit for each unit has been diluted because of increment of units, the company suppose to give for free to existing holders such as free BI or RI offers to shareholders on good performing ordinary stocks.

And ya, I also quite piss off as so far I see ALL reits don't give free gifts to shareholders. 

I think what monkeyking said is to give it for FREE. Since the profit for each unit has been diluted because of increment of units, the company suppose to give for free to existing holders such as free BI or RI offers to shareholders on good performing ordinary stocks.

And ya, I also quite piss off as so far I see ALL reits don't give free gifts to shareholders. 

REIT Financial News - 9 SEP 2010: Notice of rights issue books closure date for AIMSAMPIReit


NOTICE OF RIGHTS ISSUE BOOKS CLOSURE DATE for AIMSAMPIReit. See press release.

Key Points

    * Eligible Unitholders will receive their Rights Entitlements on a basis of seven (7) Rights Units for every twenty (20) existing Units held by each Eligible Unitholder as at the Rights Issue Books Closure Date.
    * Important dates and times in respect of the Rights Issue:




Key Points

    * Proposed acquisition of a high-quality industrial property at 27 Penjuru Lane Singapore 609195 for S$161.0 million.
    * New debt facility of S$280.0 million.
    * Fully underwritten renounceable 7 for 20 rights issue to raise S$79.6 million.
    * The Rights Issue Books Closure Date which is expected to be 5.00 p.m. on 20 September 2010.
    * The Rights Units will be issued at a price of S$0.155 per Rights Unit, which is a discount of 32.6% to the closing price of S$0.230 per unit on 19 August 2010 and which is a discount of 26.5% to the theoretical ex-rights price (“TERP”) of S$0.211.
    * The Manager expects to raise gross proceeds of S$79.6 million, of which:


          o S$64.5 million will be used to part satisfy the total cash cost of the Acquisition.
          o S$4.8 million will be used to pay for underwriting and selling commissions and professional and other fees and expenses.
          o S$10.3 million will be used to pay for debt related costs and for general corporate and working capital purposes.

Cheers guys, I think I've used the word FREE inaccurately. Sorry. 

What I actually mean was, when a company wants to increase their capital, they sometimes do BI. And when they increase unit of shares to increase capital, existing shareholder's shares will be diluted. And how they treat shareholders fairly is that they offer the same amount of extra units to the shareholders. ie. 1 on 1 BI ends up shareholders holding double of shares they used to have, so that the dilution of EPS does not affects their total profit from the shares they own.

Now comes to the case of REITs. When they increase capital, they DON'T offer BI. So the EPS of existing shareholders' shares becomes diluted immediately. Of course, the new assets may provide more profit in the future, but at the moment, they may not too. For non-Reit companies, after they increase capital, they also use those extra capital to gain more income in the future too. But at the moment, they offer BI to their shareholders so that the profit of their owning shares remains the same.

I hope this explanation is clear enough.
Cheers. 

ps: I used the word "FREE" because in chinese, they wrote something like this:
手套股建議以1送1比例派送1億5986萬6976紅股。
"送" in English is "free gift".

Cheers guys, I think I've used the word FREE inaccurately. Sorry. 

What I actually mean was, when a company wants to increase their capital, they sometimes do BI. And when they increase unit of shares to increase capital, existing shareholder's shares will be diluted. And how they treat shareholders fairly is that they offer the same amount of extra units to the shareholders. ie. 1 on 1 BI ends up shareholders holding double of shares they used to have, so that the dilution of EPS does not affects their total profit from the shares they own.

Now comes to the case of REITs. When they increase capital, they DON'T offer BI. So the EPS of existing shareholders' shares becomes diluted immediately. Of course, the new assets may provide more profit in the future, but at the moment, they may not too. For non-Reit companies, after they increase capital, they also use those extra capital to gain more income in the future too. But at the moment, they offer BI to their shareholders so that the profit of their owning shares remains the same.

I hope this explanation is clear enough.
Cheers. 

ps: I used the word "FREE" because in chinese, they wrote something like this:
手套股建議以1送1比例派送1億5986萬6976紅股。
"送" in English is "free gift".

yok70,

I think you have mistaken bonus issue with rights issue. Bonus issue does not increase the company's capital. It in fact reduces the company's capital as they are transferring their cash into stocks and distribute it back to the investors. Bonus issue does not increase the company's value, thus a bonus issue will only dilute the price of the stock and the EPS of the stock as the outstanding shares has increased. For rights issue, companies will sell rights to buy additional shares to existing shareholders to raise capital.

Before BI:
par value: 1.00
share issued: 10 million
share price: 3.00
market cap: 30 million
eps: 0.10
cash: 15 million

After BI of 1 on 1:
par value: 1.00
share issued: 20 million
share price: 1.50
market cap: 30 million
eps: 0.05
cash: 15 million - 10 million (the increase shares) * 1.00 (par value of 1.00) = 5 million.
Is the above correct? Especially the cash part. 

Another question is,
If X = share issued * share price,
what do we call this X?