Nov 30, 2010

Dividends for Q310 - Final

Ok, I finally received my PST dividend and it is just 1 cent off my calculation of S$108. With that, my final dividends received for Q310 is as calculated before :

S$(108 + 123 + 100 + 111) / 3 = S$147

I am very eagerly looking forward to 4Q10 dividends now !!   :=)

Nov 11, 2010

First Reit - my first healthcare reit

Just two days ago, First Reit announces that it is going to issue rights to fund the purchase of two hospitals in Indonesia. According to the announcement, it is going to issue rights at S$0.50 per unit and the TERP is estimated to be at S$0.70. It is also a yield accretive acquisition as the distribution yield is to rise from 8.57% to 9.14% (based its calculation on the closing price of S$0.95 on 4th Nov 2010).

All along, I have been interested to own some units of this reit and now it provides me a very good opportunity to do just that. Due to my capital limitation, I intend to own about 10000 shares (10 Lots) of it. After some calculation and consideration, I decided to do this :

1. Buy from open market = 4000 shares (4 Lots)
2. Rights to be received = (4000/4) * 5 = 5000 rights units
3. Shares own after rights conversion = 4000 + 5000 = 9000 shares
4. For the balanced shares :
  • To apply excess rights for at least = 1000 units => 1000 shares
  • Or, buy again from open market = 1000 shares

 Net shares to own = 9000 + 1000 = 10000 shares

So far, I have completed Step 1 today. Hence for now, I shall wait for the window of rights application to open and then proceed with my rights and excess rights application.

I will continue my update about this purchase in my later posts.