Nibbled Ascendas Reit at TERP

I bought some Ascendas Reit (A17U.SI) at the TERP (theoretical ex-rights price) of 3.10 today.

I read a well-written blog post and saw that the trading plan makes sense.

Here is a summary of trade plan from the blog

  1. Buy at the TERP price of 3.10 (1 Nov to 7 Nov)
  2. Exercise the full 16-for-100 rights issue at $2.63. Apply for excess rights. (14 Nov to 21 Nov).
  3. Sell from 6 Dec onwards

Note that there are risks involved in this investment. Current price of Ascendas Reit is very high. News can easily rattle the broader market and hit A-REIT unexpectedly, which could see more than a 0.10 fall in the share price.

Main reasons why I like Ascendas Reit:

  • This acquisition is both DPU and NAV per unit accretive
  • Ascendas Reit has a track record of rising DPU

  • I'm a remisier with Maybank Kim Eng, and as a bonds and REITs investor myself, I guide my clients to build resilient bonds and REITs portfolios. If you like to be guided, please open a trading account to become my client; It's free!
  • WealthLions is my blog where I journal my trading ideas and share my opinions about the markets. If you like to be kept posted of my new blog posts and events, please subscribe to my mailing list. No spam, I promise.