Friday, 3 August 2018

RHT - Religare Health Trust Deal

Finally, I disposed off my holding in Religare Health Trust after I made some calculation.

Initial estimate distribution announced in early this February
  1. Final INR for consideration of INR46,000 millions. (It is suppose to be INR46,500 millions however there is a clause in the deal that reserve this INR500 millions if  parties not obtaining warranty and indemnity clause)
  2. Total outstanding shares was about 807,842,000
  3. Exchange rate INR48.5=SGD1
Based on the above, we will be able to derive why they mentioned net consideration is $0.88 (INR46,000 millions divided by INR 48.5 and divided by the total outstanding shares)

However the manager also mentioned the transaction cost of $15.8 millions with this the net proceed will be $0.86 and the manager reserve 5% and with this the estimated distributed will drop to $0.82.

Few months has passed and few thing has changes
  1. No of outstanding shares has increased to 809,644,000
    • Remember, there is another quarter in September that will increase the outstanding shares however for those still holding you should be able to get some additional dividend :)
  2. INR exchange rate has depreciate to around INR50 = SGD1 (as of 3 Aug 18)
With those 2 new figures , the estimate distribution will be $0.8 and with manager reserve 5%, the distributed amount somewhere in year end will be $0.78.

With a lot of uncertainty, even IHH has made the offer and Fortis has accept it then come Daiichi , you can read the news here . I have decided to say good bye to RHT since I don't see much capital gain I can have.

RHT is a painful lesson for me even though I don't suffer any capital loss and still keep the dividend over the year. I could have earn much more capital gain if I could did my due dilligence earlier instead of at this stage.

Friday, 29 June 2018

June 18 Portfolio update, 60% toward 2018 goal.

For the month of June I have
  1. Bought back 8k shares of AA Reit at $1.38
  2. Bought back 10k shares of MGCCT at $1.14, with this I returned back the profit I have earlier and my average price will be $0.92
  3. Bought back 20k shares of CRCT at $1.55, with this I returned back the profit I have earlier and my average price will be $1.46
  4. Bought 8.5k FCOT shares at $1.37
  5. Sold 47.2k shares of First Reit at $1.37
Feel the pain for CRCT as when I bought at $1.55 the next hour it drop few cents and the next few days it was drop until $1.46, This is the fund from selling First Reit to diversify my concentration risk and I should be able to get the same yield as First Reit plus a little bit bonus as CRCT is bi-annual dividend and it is going to pay in next quarter.

I will divest some more of my First Reit when the price is right for me.

RHT deadline to be bought over by Fortis is getting nearer and if the price is above my cost, I will let it go and move on.

Total dividend and trading profit for 1st half of 2018 stood at $17.5k and based on my current holding I should be able to hit the profit of $28k i have set this year and may hit $30k.

My current portfolio

First REIT46.47%
Frasers logistics and Industrial21.25%
Religare Health Trust (RHT)8.95%
CapitaLand Retail China Trust7.02%
IReit Global3.81%
EC World2.81%
Frasers Commercial Trust2.67%
Mapletree Greater China Trust2.62%
AIMS AMP Capital Industrial REIT2.53%
Fortune REIT1.87%

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