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03-09-2017, 09:59 AM
I'll add-in some further explanations that I thought of this morning after replying to a forummer in another forum :-
Yes bro,... it is accretive, but NOT dpu-accretive. It is yield-accretive.
Document for reference, the Circular : http://infopub.sgx.com/FileOpen/MUST%20-...eID=469425
Being 'yield-accretive' is DIFFERENT from being 'dpu-accretive'. The 'yield-accretive' matter is explained in the following paras on page 29 of the above document which is The Circular :-
4.4 Accretive Acquisition Funded by a Rights Issue
4.4.1 Accretive Acquisition that Improves DPU Yield to Unitholders
FOR ILLUSTRATIVE PURPOSES ONLY: Assuming the Acquisition was completed on 20 May 2016 (the date of listing of Manulife US REIT) and Manulife US REIT held and operated the Property in FY2016, the pro forma DPU yield of the Enlarged Portfolio would increase by 2.2% to approximately 6.23%(1) compared to the pro forma DPU yield of the Current Portfolio of approximately 6.10%(2).
The 2016 actual yield is said to be at only 6.10% annualised from an actual dpu of 3.55 cts divided by the last closing price last Friday of 96.5 Cts.
BUT the way they calculated the resultant yield after the acquisition of 10 Exchange Place and the completion of the Rights Issue is by dividing 3.41 cts (resultant dpu) with A LOWER PRICE OF 88.6 Cts.
3.41 US Cts is THE RESULTANT DPU, being LOWER tha the 3.55 US Cts that we got last year, with all references being equal !
The resultant dpu is LOWER !!!!!!
Did I miss anything ?
Yes bro,... it is accretive, but NOT dpu-accretive. It is yield-accretive.
Document for reference, the Circular : http://infopub.sgx.com/FileOpen/MUST%20-...eID=469425
Being 'yield-accretive' is DIFFERENT from being 'dpu-accretive'. The 'yield-accretive' matter is explained in the following paras on page 29 of the above document which is The Circular :-
4.4 Accretive Acquisition Funded by a Rights Issue
4.4.1 Accretive Acquisition that Improves DPU Yield to Unitholders
FOR ILLUSTRATIVE PURPOSES ONLY: Assuming the Acquisition was completed on 20 May 2016 (the date of listing of Manulife US REIT) and Manulife US REIT held and operated the Property in FY2016, the pro forma DPU yield of the Enlarged Portfolio would increase by 2.2% to approximately 6.23%(1) compared to the pro forma DPU yield of the Current Portfolio of approximately 6.10%(2).
The 2016 actual yield is said to be at only 6.10% annualised from an actual dpu of 3.55 cts divided by the last closing price last Friday of 96.5 Cts.
BUT the way they calculated the resultant yield after the acquisition of 10 Exchange Place and the completion of the Rights Issue is by dividing 3.41 cts (resultant dpu) with A LOWER PRICE OF 88.6 Cts.
3.41 US Cts is THE RESULTANT DPU, being LOWER tha the 3.55 US Cts that we got last year, with all references being equal !
The resultant dpu is LOWER !!!!!!
Did I miss anything ?