'via Blog this'
This is one interesting article which is worth reading again. However, I don't really agree with its report. He uses an example of CMT to illustrate how rights have resulted in negative cash flow for us, retail investors. But he failed to consider the increase in number of units that the retail investor holds, which results in an overall increase in value of her investments.
In fact, according to Lim and Tan (http://sreit.reitdata.com/2011/11/28/reits-%E2%80%93-lim-and-tan/), total shareholder return is 127% which is much more than the dividends that she has received. Lim and Tan is also right to say that we can sell our nil-paid rights instead of subscribing, thus generating more returns.
So is the REIT myth busted by the author of the article? I don't think so. I think Lim and Tan hit a home-run in their report about tweaking of rules on how managers should be compensated (and not by acquisition)
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