Nibbled Ascendas Reit at TERP

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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.

https://www.probutterfly.com/blog/ascendas-reit-rights-issue-strategy-and-thoughts-about-their-us-acquisition

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 Securities, 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!