Friday, July 19, 2013

SPH...OUE...And now Boustead next to venture into REITS

Boustead Singapore is getting ready to venture into the next hottest phenomenon out there....REITS. This news came out after the successful listing of the recent SPH and OUE Reits.
 
Mr. Wong, Chairman and CEO of Boustead Singapore, is determined to press on with the idea of creating a REIT, where he believes will benefit the shareholders of Boustead Singapore through capital recycling and corporate tax savings on the dividends.
 
 
 
"We don't need an external partner to do it, but we are looking for a partner to share risk and help us build our portfolio"
 
"Finding yield-accretive acquisitions is more difficult, with yields going up. So, this will play to our advantage"
 
"We are the pioneers in Singapore for industrial properties leaseback . With our design capability and leaseback model, we will be able to continue to create a pipeline"
 
"Our competitors don't have the expertise. They just make acquisitions and float them. They make money because they are good managers, but they have no pipeline".
 
At current price, Boustead is trading at a 5% yield and 11 times forward earnings. NAV stands at 60 cents. The company is scheduling its AGM on the 26th July 2013.
 
 

6 comments:

  1. I won't hold my breath on this if I were you. It's all just talk; The Edge is just hyping it up. Boustead does not have the critical mass for a REIT and it will probably take another few more years.

    ReplyDelete
    Replies
    1. Hi Mw

      Care to share why do you think it will take another few more years? Is it due to their small industry property size that they have in their portfolio right now?

      Delete
  2. Ready fund from plenty of passive income investors

    ReplyDelete
    Replies
    1. Hi Uncle cw

      It's going to be a luxury for investors to choose in between the different many reits out there.

      Delete
  3. Yes you are right that they are too small to form a REIT on their own. I have attended a talk by their PR guy. They are exploring various options to overcome this. One of them is to combine with other companies' property or go for a stapled REIT

    ReplyDelete
    Replies
    1. Hi Leon

      Yeah. I think they can go to find partners to do REITS with. I don't think it'll be that difficult to do it. Anyway, I'll be going to the AGM this coming Friday and maybe I will ask them that.

      Delete

UA-57154194-1