Ascendas Reit

@jeremyowtaip bro Jeremy, would like to hear your view? Isn't the new placement of 170m share is going to erode the dpu? Current price is trading at p/b 1.24x , Nav 2.07, seems trading at a super premium price level.(i think is expensive)..Yield is below 6%. DPu of 15.9 cents, let says another 5% decrease of dpu that may derive the dpu of 15.1 cents. Would you rather wait for price to go lower towards $2.20 level or lower Or would you be interested to initiate a position at current price level?

CLOSE OF PRIVATE PLACEMENT OF 178,007,000 NEW UNITS (“NEW UNITS”) IN
ASCENDAS REAL ESTATE INVESTMENT TRUST (“ASCENDAS REIT”) AT AN ISSUE PRICE
OF S$2.540 PER NEW UNIT
Capitalised terms used herein, unless otherwise defined, shall have the meaning ascribed to them
in the announcement of Ascendas Real Estate Investment Trust dated 6 September 2018 in relation
to the launch of the proposed private placement (the “Announcement”).
1. Introduction
Further to the Announcement in relation to the private placement of 178,007,000 New Units
at an issue price of between S$2.528 and S$2.606 per New Unit (the “Private Placement”),
Ascendas Funds Management (S) Limited, in its capacity as manager of Ascendas Reit (the
“Manager”), is pleased to announce that DBS Bank Ltd. (“DBS”) and J.P. Morgan (S.E.A.)
Limited (“JPM”, and together with DBS, the “Joint Lead Managers and Underwriters”), in
consultation with the Manager, have closed the book of orders for the Private Placement.
The Private Placement was approximately 2.2 times covered and drew strong demand from
new and existing institutional, accredited and other investors.
2. Issue Price

The issue price has been fixed at S$2.540 per New Unit (the “Issue Price”), as agreed
between the Manager and the Joint Lead Managers and Underwriters, following an
accelerated book-building process.
The Issue Price of S$2.540 per New Unit represents a discount of:
(i) (for illustrative purposes only) 3.50% to the adjusted volume weighted average ..

price1
 (“VWAP”) of S$2.6322 per Unit; and
(ii) 6.09% to the VWAP of S$2.7047 per Unit for trades in the Units done on Singapore
Exchange Securities Trading Limited (the “SGX-ST”) for the full Market Day2
 on 6
September 2018 (being the Market Day on which the Placement Agreement was
signed).
The gross proceeds from the Private Placement amounted to approximately S$452.1
million.
The Issue Price of S$2.540 per New Unit represents a 25.1% premium to the adjusted net
asset value per Unit3
 (based on Ascendas Reit’s unaudited financial results for the financial
period from 1 April 2018 to 30 June 2018).
3. Use of Proceeds
Subject to relevant laws and regulations, the Manager intends to use the gross proceeds of
approximately S$452.1 million from the Private Placement in the following manner:
(i) approximately S$250.0 million4
 (which is equivalent to 55.3% of the gross proceeds
of the Private Placement) to partially fund the acquisition of a second UK logistics
portfolio5
 (the “Proposed UK Acquisition”) and the associated costs, subject to
completion of negotiations with the vendor and satisfactory due diligence6
;

(ii) approximately S$109.0 million (which is equivalent to 24.1% of the gross proceeds
of the Private Placement) to partially fund the development of a build-to-suit facility
located in Singapore (the “Proposed Singapore Development”), subject to
completion of negotiations with the vendor and satisfactory due diligence7
;
(iii) approximately S$88.9 million (which is equivalent to 19.7% of the gross proceeds
of the Private Placement) to be used for funding debt repayment and future
acquisitions; and
approximately S$4.2 million (which is equivalent to 0.9% of the gross proceeds of
the Private Placement) to pay the estimated fees and expenses, including
professional fees and expenses, incurred or to be incurred by Ascendas Reit in
connection with the Private Placement,
with the balance of the gross proceeds of the Private Placement, if any, to be used for
general corporate and/or working capital purposes.
Notwithstanding its current intention, in the event that the Private Placement is completed
but the Proposed UK Acquisition and/or the Proposed Singapore Development does not
proceed for whatever reason, the Manager may, subject to relevant laws and regulations,
use the net proceeds from the Private Placement at its absolute discretion for other
purposes, including, without limitation, to repay existing indebtedness and fund capital
expenditures.
Pending the deployment of the net proceeds from the Private Placement, the net proceeds
may, subject to relevant laws and regulations, be deposited with banks and/or financial
institutions or used to repay outstanding borrowings or for any other purpose on a shortterm
basis as the Manager may, in its absolute discretion, deem fit.
The Manager will make periodic announcements on the utilisation of the net proceeds of the
Private Placement via SGXNET as and when such funds are materially utilised and whether
such a use is in accordance with the stated use and in accordance with the percentage
allocated. Where there is any material deviation from the stated use of proceeds, the
Manager will announce the reasons for such deviation.


Listing of, Dealing in and Quotation of the New Units
The trading of the New Units on the SGX-ST pursuant to the Private Placement is currently
expected to commence at 9.00 a.m. on 18 September 2018.
The Manager will make a formal application to the SGX-ST for the listing of, dealing in, and
quotation of, the New Units on the Main Board of the SGX-ST. An appropriate
announcement will be made upon the receipt of such in-principle approval from the SGXST.
Placement of New Units to DBS’ Treasury Investments Unit (“DBS TI”)
DBS TI has been allocated 9,800,000 New Units under the Private Placement. Ascendas
Land (Singapore) Pte Ltd (the “Sponsor”) is a substantial unitholder of Ascendas Reit. As
of the date of this announcement and based on information available to the Manager,
Temasek Holdings (Private) Limited (“Temasek”) owns 51.0% of the Sponsor. Accordingly,
Temasek, through its interest in the Sponsor, is deemed a substantial unitholder of
Ascendas Reit. DBS is a wholly owned subsidiary of DBS Group Holdings Ltd (“DBSH”) and
based on the latest annual report of DBSH for the financial year ended 31 December 2017,
Temasek had a direct and deemed interest of 29.27% in DBSH as at 1 March 2018.

Downtrend stock counters

These are the few downtrend stock counters that could be seeing further selling down pressure!

Japfa
China Sunsine
DBS

Firstly, we take a look at Japfa.
After hitting the high of about 77 cents, it has succumbed to selling down pressure and continue to trend lower to close 62.5 cents today, this is rather bearish.

Short term wise, I think likely to revisit 60 cents . Breaking down of 60 cents with high volume that would be rather negative and may continue to slide down towards 50 cents level.


Similarly for China Sunsine, after hitting the high of $1.60+, it has since corrected sharply and continued to go down to touch $1.02 today and close at $1.04 . This is rather bearish!

Short term wise, i think it may likely revisit $1.00. Breaking down of $1.00 may likely see it prices heading lower towards 91 cents with extension to 82 cents.

Thirdly, for DBS it has broken down the recent low of $25.00 and continue to slide further down towards $24.41 today and close at $24.58 level. Looks rather negative and may likely continue to head lower to retest $24 with extension to $23.24 level.

Not a call to sell or buy.

Please do your own due diligence.

Singapore Saving Bond offer for October and Nov

Nov rate is out!
Looks attractive!
First year 1.8%, average for 10 years 2.48%.

Closing date of application : 26 Oct 2018.
It is now available for applying .

Applicant may apply via Internet banking from the 3 local banks such as DBS,Uob & OCBC .

Closing date of application is on 25th September 9pm.

 First year interest is 1.74% & 10 year interest is about 2.42%. You may refer to the table below ;

 Each Savings Bond has a term of 10 years and pays interest every 6 months. Savings Bonds cannot be traded like conventional bonds or shares. Interest income is exempt from tax. Only individuals above 18 years old can apply.

 Savings Bonds are fully backed by the Singapore Government. And because the bonds can always be redeemed for the full amount invested, investors are protected against capital losses when interest rates change.

 This makes them one of the safest possible investments for individuals to hold.

 Save up to 10 years, and earn interest that “steps up” or increases over time. Hold your Savings Bond for the full 10 years and receive an average interest per year that matches the return from 10-year Singapore Government Securities yields, which has generally been between 2%-3%. Flexible : Or, choose to exit your investment in any given month, with no penalties.

There is no need to decide on a specific investment period at the start.

Before you Apply: You will need: A bank account with DBS/POSB, OCBC or UOB. Visit any of the three local banks’ branches in Singapore to open a bank account.

 An individual CDP Securities account linked to any of your bank accounts through direct crediting service (DCS). CDP is the custodian for Savings Bonds and will process applications, interest payments and redemptions. Visit CDP's webpage for information on opening your CDP Securities account.

 $2 transaction fee A non-refundable transaction fee will be charged by the bank for each application request.

After you have Apply: MAS will allot the new Savings Bond among applicants on the 3rd last business day of the month (called the "Allotment Day")You will receive the first interest payment 6 months after the bond is issued. Interest will be automatically paid into the bank account that is linked to your CDP account.

 The application results will be available on the Announcements page after 3.00pm on Allotment Day. Should the total amount of applications exceed the amount on offer in a particular month, you may not get the full amount you applied for (why not?). The excess cash will be refunded to you by the end of the 2nd last business day of the month.

Savings Bonds will be issued on the 1st business day of the following month. You will be notified by CDP via mail of the amount of Savings Bonds allotted to you. You can also check your holdings online through the CDP Internet service or by calling CDP at 6535-7511.

 Received your interest : You will receive the first interest payment 6 months after the bond is issued. Interest will be automatically paid into the bank account that is linked to your CDP account. Interest will be paid every six months after that, on the 1st business day of the month. The interest payments will be reflected in your CDP statements. When your bond matures Each Savings Bond has a term of ten years. At the end of ten years, your principal and the last interest payment will be automatically credited to your DCS bank account.

You do not need to take any action, and the $2 transaction fee is not applicable in this instance. Redeeming early You can redeem your Savings Bonds in any given month before the bond matures, with no penalty for exiting your investment early. To redeem your bond: Submit your redemption requests through the DBS/POSB, OCBC or UOB ATMs, or Internet Banking portals. Redeem in multiples of $500 up to the amount you have invested for each bond. You can redeem more than one bond per month. A $2 transaction fee will apply for each redemption request. Please note that you will not be able to amend or cancel submitted redemption requests.

The redemption period opens at 6pm on the 1st business day of each month and closes at 9pm on the 4th last business day of the month. Redemption proceeds will be paid by the end of the 2nd business day of the following month. Will I receive any interest?  Savings Bonds pay interest every 6 months.

If you redeem your bond when there is a scheduled interest payment, you will receive the scheduled interest together with your redemption amount. If you redeem before the scheduled interest is paid, you will receive a pro-rated amount, called the accrued interest, which is the interest you have earned but have not been paid.

Genting Sing

Looking at the chart we can notice that the Supply has more or less exhausted with the indication of the super wide Volume bar reflected in RED.

The volume bar has generally turned lower.

 The Demand started to come in with the indication of the stronger buying interest accompany with the super wide Volume bar in GREEN .

 This seems that the ACCUMULATION process is on going.

 Once BB has collected with sufficient amount of share, we can witness that the price had started to breakout of the Accumulation zone and rises higher.


 Genting Sing had a nice white thrust bar appeared on the chart today couple with high volume. This is rather positive. A nice Breaking out of the hurdle/accumulation zone at $1.10, this is super bullish!

Short term wise, it may likely re-attempt $1.14 the immediate Resistance. Breaking out with ease + high volume that may propel to drive the price higher towards $1.22,next $1.25.

Not a call to buy or sell.

Please do your own due diligence.


Genting Singapore Limited, an investment holding company, engages in the development, management, and operation of integrated resort destinations in Asia. Its integrated resort destinations comprise gaming, hospitality, MICE, leisure, and entertainment facilities. The company primarily owns Resorts World Sentosa, a destination resort, which offers a casino, Adventure Cove Waterpark, S.E.A. Aquarium, Universal Studios Singapore Theme Park, MICE facilities, hotels, Michelin starred restaurants, and specialty retail outlets. It is also involved in the operation of casinos; and provision of sales and marketing support services to leisure and hospitality related businesses, as well as in the investment activities. Genting Singapore Limited was incorporated in 1984 and is headquartered in Singapore. Genting Singapore Limited is a subsidiary of Genting Overseas Holdings Limited.

Centurion

From TA point of view,it is rather bearish ! The company director keeps buying back share from 55 to 42 cents yet the price still continue to head further South! It seems that Bear is still in control!

Short term wise, it may continue to head lower. This reminds me of YZJ, the price keeps falling when the company keeps buying back share. The same scenario is being played out now on this counter.


Immediate support is at 40 cents. Breaking down of this level may see it's price slide further down towards 35 with extension to 30 cents. 

NAV $0.557
Dividend of 2 cents.
Yield is 4.5%

Not a call to buy or sell.

 Please do your own due diligence.


Centurion Corporation Limited, an investment holding company, develops, owns, and manages workers and students accommodation assets in Singapore, the United Kingdom, Malaysia, Australia, and internationally. The company conducts its operations through Workers Accommodation, Student Accommodation, and Others segments. It offers dormitory accommodation and services for workers; and accommodation and services for students. As of December 31, 2017, the company owned and managed a portfolio of 26 operational accommodation assets comprising 55,148 beds. It also manufactures and sells optical discs and related data storage products. In addition, the company offers laundry and dry cleaning; management; utilities and transportation; fund management; and trustee services. Further, it is involved in property investment activates. The company was founded in 1981 and is headquartered in Singapore. Centurion Corporation Limited is a subsidiary of Centurion Properties Pte Ltd.

ThaiBev & YZJ - ACCUMULATION Zone

YZJ - Looking at the chart we can notice that the Supply has more or less exhausted with the indication of the super wide Volume bar reflected in RED. The volume bar has generally turned lower.


The Demand started to come in with the indication of the stronger buying interest accompany with the super wide Volume bar in GREEN . This seems that the ACCUMULATION process is on going.
Once BB has collected with sufficient amount of share, we can witness that the price had started to breakout of the Accumulation zone and rises higher.

ThaiBev - Looks like the similar scenario is happening over at this counter and we would see that the Supply has more or less exhausted with the indication of the super wide Volume bar reflected in RED. The volume bar has generally turned lower.


Hopefully , we can see Demand increases and price can breakout of the Accumulation zone in the near future!

Not a call to buy or sell.

Please do your own due diligence.

Trade / invest base on your own decision.