Wednesday, July 15, 2015

[SGX Portfolio] Dipping toes back into OUE Comm REIT

I exited my position in OUE Comm REIT just very recently because it seemed very fair valued to me, plus I did not want to end up with odd lots, inject a lot of capital and increase my position within my portfolio.

For about a year with this investment I made by 7.2% which is rather decent in my opinion.

Key numbers are $0.92 which is the pro-forma NAV, $0.81 which is the closing price which helps calculates the TERP of $0.731.

I sold off my previous stake at $0.815 which was above the closing price they used, so that's a point for me.

Today I bought back a nibble at a price of $0.705 which is 4% below the TERP price.

With a 9-20 rights issue and my previous stake of 1000 shares, I would have to pony up and buy an additional 1000 shares so that I can exercise my 900 rights and not end up with any odd lots. That would require me an additional $1,300 of capital to make full use of the rights and have my capital investment to be at the TERP price of $0.731.

So not only did I make a small profit by selling my stake off CR, I also managed to reduce myself to a much more comfortable position and get in with a lower price.

Still, I don't like the fact that the REIT only has 2 (3 after the acquisition) properties, but the price is right for me to go back in for a little nibble!

2 comments:

  1. New to this, but I thought you are eligible only when you hold the shares during the Cum rights period?

    ReplyDelete
    Replies
    1. Hi Anon,

      Yes, I did not hold onto the shares during the CR period. I sold out early and bought back XR. This means that I don't have to care about applying for the rights.

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