Another $82.8 million, or 27.3 per cent, will be used to finance aplanned extension and renovation of Novotel Sydney Central, its hotel asset in Australia.
Some $19.9 million, or 6.6 per cent, will go into financing the renovation of Citadines Holborn-Covent Garden London, the stapled group’s serviced residence in Britain.
The preferential offering will be on the basis of 29 shares for every 1,000 shares owned.
As I currently hold 8,000 shares of Capitaland Ascott Trust which were converted from previous Ascendas Hospitality Trust, I am entitled to 208 preferential offer shares.
I hope to get 2,000 shares including excess but not guaranteed in preferential offering.
Now that the share price of Capitaland Ascott Trust is below the preferential offer price of $1.025, I have nibbled 2,000 shares at $1.01 off the market which costs $2,048 instead of $2,052 from if I were to subscribe to preferential offer. Hence I will skip the preferential offer exercise.
There it goes.
Capitaland Ascott Trust constitutes less than 5% of my SGX income portfolio and is not my most favourite REIT. Though I believe it is the best hospitality REIT for investors to ride on the tourism recovery wave, it is not the most attractive REIT to hold for the long-term considering that there are many better quality REITs offering more attractive yields at lower risks.
Nonetheless, I am happy to round up my investment in Capitaland Ascott Trust at below book value of $1.15 and continue "owning" hotels and serviced residential properties around the globe, while collecting rental for the long-term at a yield of more than 5%.
Thank you for reading. Stay focused and remain steadfast as always!
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