AIMS AMP Industrial REIT

[KopiKat]

To me the action is neither. You should sell the mother share if you don't think the share is worth purchasing.

There's a big difference between 'Worth Purchasing' and 'Worth Purchasing More' eg. via DRP.

In my case, having evaluated the risk-rewards for AIMSAMP, I'm willing to take only a smaller risk, say, max. 5% of my portfolio. So, I'd unlikely want to subscribe for more via DRP (or open market purchase), besides other reasons cited earlier.

My action of not taking up the DRP doesn't mean it's not 'Worth Purchasing'. Rather, it's not 'Worth Purchasing More' based on my own risk profile. So, there's no need to sell the mother share unless the DRP discount is huge enough to do a mini-arbitrage ie. Sell Mother Share, Buy via DRP. But, the discount is typically not attractive enough and/or my total Qty (of DRP) not large enough to do that.



Talking about AIMSAMP, the recent BT interview with their new Chairman has lowered my 'alert' status one notch. Extracts,

AIMS AMP Capital Industrial Reit intends to "sweat" its assets over the next few years by raising the overall quality of its portfolio to provide better returns for its shareholders, said Andrew Bird, director of AMP Capital's property and management business.

With more than 20 per cent of its current portfolio in Singapore undergoing asset enhancements, the industrial real estate investment trust (Reit) intends to focus on improving the quality of its overall assets this year, instead of acquiring new properties.

In particular, Mr Bird, who was also newly appointed as chairman of the board of AIMS AMP Capital Industrial Reit Management (the Reit's manager) yesterday, said that with the completion of the group's $155 million development at 20 Gul Way later this year, the Reit's portfolio – comprising mainly warehouse and logistics assets – which currently stands at around $940 million, is expected to cross the $1 billion mark.

ie. Chances of Rights Issues is low for this year.