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Capitaland rights issue has been circulating for some weeks now.
C-Land, at $2.36, is trading at a large 34% discount to book NTA of $3.60 per share, which in turn raises the following questions:-
As at end Sept ’08, C-Land has total Borrowings of $10,440.5 mln; $4,209.66 mln Cash and $10,767.0 mln of Shareholders Funds.
Singapore reits are likely to take the cue from their counterparts in the US, who are expected to pay dividends with shares rather than cash, having been given the go-ahead by the US internal Revenue Service (our equivalent of IRA). By so doing, the US Reits are expected to save US10bln which can be used to pay down their borrowings. The banks would put pressure on S-Reits to do so, especially those with much refinancing to do this year. One strategy is to wait for someone to take the lead, before taking a more aggressive stance in picking up S-Reits. =================================================================
Technically, still trapped within 50EMA and downtrend line, my guess we will drift a while.
C-Land, at $2.36, is trading at a large 34% discount to book NTA of $3.60 per share, which in turn raises the following questions:-
As at end Sept ’08, C-Land has total Borrowings of $10,440.5 mln; $4,209.66 mln Cash and $10,767.0 mln of Shareholders Funds.
Singapore reits are likely to take the cue from their counterparts in the US, who are expected to pay dividends with shares rather than cash, having been given the go-ahead by the US internal Revenue Service (our equivalent of IRA). By so doing, the US Reits are expected to save US10bln which can be used to pay down their borrowings. The banks would put pressure on S-Reits to do so, especially those with much refinancing to do this year. One strategy is to wait for someone to take the lead, before taking a more aggressive stance in picking up S-Reits. =================================================================
Technically, still trapped within 50EMA and downtrend line, my guess we will drift a while.
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