Aug 8, 2021

Cory Diary : Short History of iReit Global


7th Aug'20 - 1H2020 DPU S$2.85 (3.16 bf. ret), NAV €0.55, 641,862,550 Shares, Gearing 39%.

7th Aug'20 - Propose Remaining stake in Spain. Stock price dropped 3 cents from S$0.67 and then slide down to S$0.575 in early Nov. A significant right issue at 39.5% discount. 

22nd Oct'20 - The acquisition was completed.

28th Oct'20 - IREIT also repaid the €32.0m loan provided by CDL.

10th Feb'21 - 2H2020 DPU S$2.18 (2.42 bf. ret), NAV €0.47, 938,963,000 Shares, Gearing 34.8%.

28th Apr'21 - Propose acquisition of 27 properties of Decathlon France.

12th May'21 Completion of acquisition expected in 3Q2021

30th Jun'21 Placement 11,372,868 Units @0.6155. Stock Price @0.635.

2nd Jul'21 Launch of PO 214 for every 1000 existing units. Closed on 14th Jul'21 PO 201,137,870 Units @0.595. Stock Price @0.635

6th Aug'21  - 1H2021 DPU S$2.30 (2.56 bf. ret), NAV €0.50, 952,302,277 Shares, Gearing 33.3%.
Stock Price 0.635.

In Review

If we are to do comparison on 1H2021/1H2020, DPU reduced by -19.3%. Per 1st Rights and 2nd Rights issue if we take the number literally is -8.3% and -2.2%. For both rights issues, they were DPU dilutive and shareholders are compensated through rights discounts and for savvy holders applying for more excess rights. The first Rights discount 39.5% on large amount of shares while the 2nd Rights issue yet include will be typical and much normal.

So If we understand the complexity of the above we would understand the result below on why iReit needs to reinstate 2020 results as this is already expected, to achieve 17.3% YOY increase instead just on larger share base basis, and not considering the discounts.

So to make it simple, how do we value it ?

Year 2020 yield is 7.2%.
Year 2021 YTD 6.9%.

However we have significantly enlarged base excluding Decathlon France exercise. Between the two dates, shareholders gained in discounts, distribution and capital. Win-Win. Now, how will 9th Aug'21 trading day think is anybody guess.

Hope this helps.


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Articles in this Blog is personal take and educational purposes only. Reader should seek their own professional help when making financial decision and be responsible for their decision.

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