I bought AREIT at 3.13 because it returned to a point where it would help increase my income portfolio's overall yield abv 5% ( 5.12% to be exact). it also came with DPU 6.913c + 16 rights for every 100 owned at 2.63.
Possibilities
At friday's closing price of 2.94.
if you subscribe to the rights at 2.63, you get a "31c" discount.
i get an additional $4.96 on top of the $6.913 every 100 shares.
If i do not buy the rights entitled
This means i get $6.913 for every 100 shares.
If i bought all the rights entitled
$11.873c gain for every 100 share, on the condition i put in $42.08 to buy those 16 shares.
If i buy excess
not only i have a gain of $11.873 for every 100 share \
But for every 100 share in excess received then sold immediately based on the friday's market closing of $2.94, will net me $31.
if kept and the DPU is same as 2019, dividend yield is 6%
But for every 100 share in excess received then sold immediately based on the friday's market closing of $2.94, will net me $31.
if kept and the DPU is same as 2019, dividend yield is 6%
Conclusion
Subscribe to excess.
keep them for dividend yield of 6% at cost. because for quality business with scale, it is impossible to get 6% yield.
Too bad I don't own any Areit. can only watch hahaha. wondering to buy or not.
ReplyDeleteCurrently about 5.5% yield.
DeleteIt's next nearest comparable mapletree ind trust is 4.8% yield.
This was one reason for me to load up more of this reit. Still can buy imo