Jul 23 2009, 05:53 PM
QUOTE(SKY 1809 @ Jul 23 2009, 01:05 PM)
Jordy,
Your yield computation is diff from my broker, which is about 10.9, later more. ( Rental Yield ). Dividend yield is about 11.9%. Read 2/3 of report attached.
Though an increase in units through private placement, might need to build in the incremental increase in rental incomes , in order to balance up. Gearing might fall to 27% from 37% if fully placed. Another + point.
Existing Fixed costs tend to drop if operation expands ( just an assumption made ).
Attach report in case you are interested.
RPT , is my concern also.
Regards
The computation is simple, 1st half they distribute 8sen for dividend (which i understand is near 100% of their income, excluding RM 2million profit which is paper gain from valuation, though NAV will up a bit). So Assume whole year = 8 *2 = 16cents for current 19 properties.Your yield computation is diff from my broker, which is about 10.9, later more. ( Rental Yield ). Dividend yield is about 11.9%. Read 2/3 of report attached.
Though an increase in units through private placement, might need to build in the incremental increase in rental incomes , in order to balance up. Gearing might fall to 27% from 37% if fully placed. Another + point.
Existing Fixed costs tend to drop if operation expands ( just an assumption made ).
Attach report in case you are interested.
RPT , is my concern also.
Regards
The additional property add 1.28 cents next year so total 17.28 cents.
Private placement is 20% that's mean next year 120% share the dividend. 17.28censt / 120% = 14.4 cents DPU for next year.
Remember, the private placement is to purchase the 65mil and the extra 10mil is develop it further. So, the total debts still remain the same relative to NAV, but will be lower against total asset, which for me just a small +positive factor.
He he, if they can private placement at RM 1.70 and use extra to pare down debts then good for long term like what Cherroy say(short term not good coz now low interest environment)
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