Cityspring Infrastructure Trust

[kichialo]

The real effect of this is that Cityspring is now asking its unitholders to cough out all the dividends they have received to-date, and also their guts! How to invest like that!?

So don't invest. Capital markets are efficient that way - over time they result in the transfer of wealth from the financially illiterate to the financially astute. That's the way the real world works, too.

Cityspring has been behaving like Rickmers Maritime Trust and First Ship Lease Trust, paying out cash without keeping enough aside for debt repayment and asset renewal. It is hardly surprising that it had to do a rights issue during the crisis in Aug 2009. It is utterly shameful that it has to do so again. Evidently the Trustee-Manager is not doing its job properly, since its decisions have resulted in 2 rights issues which have consumed all the cash ever paid out and more.

As usual, YMMV.

Incredibly inept management. Divested with slight loss excluding dividends collected.