I initiated a position in Ascendas Reit in Nov 2019 after selling Singtel. Back then, there was equity fund raising by Ascendas Reit to purchase 30 business parks in US. I also subscribed to the preferential offering shares and then added more shares to accumulate 8,000 shares.
Fast forward one year, it is time for another Equity fund raising by Ascendas Reit. See related post:
Another Equity Fund Raising of an S Reit to milk my war chest
Although the share prices of industrial Reits seem weak recently, the share price of Ascendas Reit did not fall much below the Preferential Offer price of $2.96. Based on recent experiences of FCT and MLT's equity fund raising, there is decent possibility of further share price weakness of Ascendas Reit as the next dividend is still months away and there is no catalyst in the short term. Nonetheless, Ascendas Reit is a must-have in any income investment portfolio and hence I decided to subscribe to 2,000 shares (including my entitled preferential offering shares with excess).
At $2.96, offering a close to 5% dividend yield, it is irresistible and considering that the share price can move either way, we can only plan to add more shares whenever its share price gets cheaper. I will continue to build up my position in Ascendas Reit in the future to strengthen my portfolio further and grow my passive income.
Thanks for reading.
With love & peace,
Qiongster
4 comments:
good luck. I applied for it too and applied for excess rights.
Good luck to you too. Expectedly, it falls below PO price today but doesn't matter for long term investors.
Thanks for your sharing. Noted you use POEMS platform. Would you able to share pros and cons between using Cash Management account and Cash Plus acc....many thanks in advance
Cash Management account is more suitable for passive long-term investors who invest using their real money, buying and accumulating shares of businesses in their own CDP account and has voting rights during AGM. Cash plus account is more suitable for short term traders actively buying and selling stocks of various markets and rarely keep their positions for long, and require leverage up to 3.5x their money. It is also a custodian account whereby Philips Capital own all the shares on the customer behalf. This has little impact on a trader who should not keep lots of shares due to active trading. Hope the above gives a good comparison of both accounts.
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