Real estate investment trusts (REITs) are known to employ a variety of methods to fund mergers and acquisitions (M&A), and these include options involving debt and equity. The most straightforward method used by REITs would be to take on more debt, but this will increase its leverage ratio (i.e. total debt divided by total asset) and may offer it less room to take on debt in future. The maximum leverage that a REIT can take up is 45%, so many REITs tap on capital markets as an alternative source of funding. Secondary share placements are a common source of fundraising and involve the issuance of new shares to a new group of investors who take up a stake in the REIT. Such placements will increase the issued share capital base of the REIT and be dilutive to distribution per unit (DPU),

Here are some stocks that saw interesting developments in the past week. Dasin Retail Trust (SGX: CEDU) This China retail real estate investment trust (REIT) halted trading to announce the launch of a private placement to raise up to S$68.8 million. The new units will be issued at S$0.836 per new unit, around a 3% discount to the market price of S$0.86 before the trading halt. Approximately S$61.3 million of the money raised will be used to fund the purchase of Doumen Metro Mall, with the remainder used to pay for expenses and fees related to the placement and acquisition. The private placement, if fully subscribed, seems to be decent for existing unitholders as the new units are at a discount to book value and are only a slight discount to the prevailing market price. The new units also

The Chinese yuan slumped to an 11-year low on Monday, 26 September to around 7.1425 to the US dollar. This was touted to be China’s retaliation to the US imposing more tariffs on Chinese products. Because of that, the Chinese yuan has also weakened considerably against the Singapore dollar over the last year. As of the time of writing, one Singapore dollar can be exchanged for 5.16 Chinese yuan, as compared to 4.98 just a year ago. The sudden devaluation of the Chinese currency will definitely have a knock-on effect on numerous Singapore-listed China companies that report their earnings and pay dividends in Singapore dollars. With that said, here are some companies that will be negatively affected by China’s currency devaluation. China-focused REITs There are a number of REITs

As one of the most popular investments in Singapore, we keep a close eye on the performance of S-REITs. After the corporate earnings announcements each quarter, we compile a comprehensive summary on our REITs Report Card column. How Singapore REITs Share Prices Have Fared In 2019, So Far Before we look at how individual REIT prices have moved, let’s look at the broad S-REIT indices in Singapore. There are two main indices – the iEdge S-REIT Index and the iEdge S-REIT 20 Index. The iEdge S-REIT Index comprises all the REITs listed in Singapore, while the iEdge S-REIT 20 Index, as its name suggests, only comprise the 20 largest and more tradeable REITs on the iEdge S-REIT Index. Read Also: Complete Guide To Investing In Singapore REITs The chart below depicts the iEdge S-REIT Index fluc

Dear readers, let us take a look at five highest dividends, undervalued Trusts and Reits. Each of these Trusts and Reits pays a Dividend yield of at least 8% and is undervalued (i.e. with a Price-to-Book ratio of less than 1). Without further ado, these five Trusts and Reits are: Daisin Retail Trust: Dividend Yield:… Continue reading FIVE HIGHEST DIVIDENDS, UNDERVALUED TRUSTS AND REITS REVEALED The post FIVE HIGHEST DIVIDENDS, UNDERVALUED TRUSTS AND REITS REVEALED appeared first on SINGAPORE STOCKS INVESTING.

Dasin Retail Trust (SGX: CEDU) announces the acquisition of a retail mall in China, its first since its IPO. Should investors be thrilled about it?

Real Estate Investment Trusts (REITs) are a favourite investment for Singapore investors. This is primarily due to its property-heavy investments and relatively high distribution yields. REITs Share Price Performance In 1st Half 2019 The first aspect of figuring out how REITs have done in the first half of 2019 is to look at how its share price has moved in the year-to-date (ytd) 2019. The chart below shows the price movements of the SGX S-REIT 20 Index, comprising the top 20 REITs listed in Singapore. As we can see, its share price has increased 10.3% since the start of the year, to 1337.3. However, looking at the past quarter, prices does look like it has taken a slight dip. Source: ShareInvestor In general, REITs have had a strong performance, in terms of just price appreciation, in th

Current Price on 7th Apr 2019 = $0.865Yield = 8.46%  Price-to-book Ratio = 0.554Assets per unit = $3.005Debt per unit = $1.443 (including current liabilities)Gearing = 48.0%Three months have passed since I look at Dasin Retail Trust and here we see it again.The price has not changed much but I have collected a dividend of $4,600 which is very good for me. With the current yield of 8.46%, I am expecting to collect another $4,200 in August/September period which is fantastic for me. It's price-to-book ratio also suggest that we are buying at a big discount. Gearing is at a high of 48% so need to watch out.With the current Hyflux problems, I have come to realize that the valuation can be misleading and unreal since Hyflux gives such a big writedown in their assets. I am wondering ho