Saizen REIT has published a circular detailing on the process that they will take for the sale to take place. Here are the details
Current Price = $1.09
Special Distribution = $1.056 (By 21st April 2016)
Retained Distribution = $0.09 (By 31st Dec 2016)
Dividend Distribution = $0.039 (Estimate 8 months from July 2015)
Total = $1.185
The catch is that the retained distribution may be used for repairs by the buyer which means we may not get the retained distribution. Thus, we are looking at $1.095 if all the retained distribution is used up.
Therefore, here is the deal. If all the retained distribution is used up, we are looking at 0.47% return from now which is equivalent to the returns of a savings account. If all the retained distribution is given to us, we are looking at at 8.68% return from now which is equivalent to a one year REIT investment with a guarantee in capital. Well, is this good for you?
I am vested with 21,000 shares. I bought 11,000 shares at $0.93 just before they announced their take over so I am going to enjoy a larger earnings. Another 10,000 shares is bought at $1.09 which will follow this formula which I have written here. Will follow through all the way to see whether I can earn the potential returns.
Current Price = $1.09
Special Distribution = $1.056 (By 21st April 2016)
Retained Distribution = $0.09 (By 31st Dec 2016)
Dividend Distribution = $0.039 (Estimate 8 months from July 2015)
Total = $1.185
The catch is that the retained distribution may be used for repairs by the buyer which means we may not get the retained distribution. Thus, we are looking at $1.095 if all the retained distribution is used up.
Therefore, here is the deal. If all the retained distribution is used up, we are looking at 0.47% return from now which is equivalent to the returns of a savings account. If all the retained distribution is given to us, we are looking at at 8.68% return from now which is equivalent to a one year REIT investment with a guarantee in capital. Well, is this good for you?
I am vested with 21,000 shares. I bought 11,000 shares at $0.93 just before they announced their take over so I am going to enjoy a larger earnings. Another 10,000 shares is bought at $1.09 which will follow this formula which I have written here. Will follow through all the way to see whether I can earn the potential returns.
What would happen to the REIT though. Delist? Or just be a non producing stock in SGX?
ReplyDeleteHi unluckid,
DeleteIt will delist, liquidate and return all cash to shareholders
Hope it helps.
I see..thanks for the info! :)
Deletehi sir, i also got 3 lots at 0.945 ... u also suggest that we hold all the way instead of selling now too?
ReplyDeleteHi there,
ReplyDeleteCould you explain what happened on 11Mar? Saizen dropped all the way till 0.08.
They distribute their capital of $1.056 after selling their entire portfolio of properties.
DeleteThank you for your sharing. Any idea what will happen after they distribute the capital? Will there still be dividend distribution?
DeleteThere should be one more which is about 9 cents. After that, they will close shop.
Deleteafter close shop can we still sell the balance price , example 0.08?
DeleteHi, will there be another dividend distribution later in the year? Not the retained money from the sale, but dividend from rental earnings
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ReplyDelete