First REIT– CEO Dr Ronnie keeps buying shares

Back then I written when First REIT announced their latest quarter results there isn’t much value.

I more or less followed CEO Dr Ronnie to purchase at $1.07 and that was when First REIT announced 2 acquisition.

But turns out Dr Ronnie kept buying even at the price of $1.40.

Not sure if we are reading too much into this but the CEO buying in is always a good thing. This stock certainly do not need a management support and the yield here based on a projected DPU of 7.5 cents isn’t super appealing at 5.3%

So why the purchase. For sure its not going to be a rights issue, since such a move will mean he has the chance to participate in the rights.

At such a high stock price a possibility is a share placement to boost DPU. It may be unlikely since they just bought something not too long ago.

Their leverage is near its limits.

It probably may be that the CEO cannot find a better return asset class to channel his capital into. That will be rather shocking.

Can’t think of other possibility. Perhaps he just like the business.

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Kyith

Kyith is the Owner and Sole Writer behind Investment Moats. Readers tune in to Investment Moats to learn and build stronger, firmer wealth foundations, how to have a Passive investment strategy, know more about investing in REITs and the nuts and bolts of Active Investing.

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