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Ascendas Real Estate Trust–Getting Expensive

AREIT announced their results this evening. Of note, distribution per unit dropped from 3.5 cent to 3 cents per quarter.

The number of units have also increased due to the placement, but the contribution have not kicked in yet.

The distribution is rather disappointing, but we hope that with the contribution next quarter they restore some of it.

The amazing thing is the performance fee.

The annualized distribution would be 12.25 cents. Which is a far cry from the 14 cents we are getting now. I believe with the contribution next quarter it will be higher than that.

For now I have update my Dividend Stock Tracker with the new units and DPU. The yield now is a miserly 4.2%. I haven’t see it annualized so low before.

Its even more crazy consider the 2.9% one day climb for a REIT of its size that movement is big. You would have thought that the result is gonna be stellar. Its not.

Such price movement makes me more of an observer than a buyer.

We talk about reward per unit risk. That return is probably not looking good for the risk we put in.

I run a free Singapore Dividend Stock Tracker available for everyone’s perusal. Do follow my Dividend Stock Tracker which is updated nightly  here.


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Sunday 21st of April 2013

I agree it is getting so expensive. But the funny thing is that why is the stock price still increasing? I guess there are many cash rich people entering into reits now and don't mind the miserly yield as it is afterall much more attractive than bank interest rates.


Sunday 21st of April 2013

You start noticing when there are unexpected shock.

Sph, Ascendas, IBM.

There are much expected predictable in earnings. When it disappointed the weakest holders panicked.

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