Daily Archives: 29 Aug 2009

Despite cash calls, Reits are doing well

Posted on 29 Aug 2009 | Comments Off on Despite cash calls, Reits are doing well

Out of the 18 Reits that have announced their results, 12 reported revenue growth

YET another real estate investment trust (Reit) went cap-in-hand to its shareholders this week. Fortune Reit said that it was raising HK$1.9 billion (S$354.4 million) from a one-for-one rights issue to buy three malls in Hong Kong and pay down debt.

The news was not surprising. Reits have been raising cash by the billion. In June, Starhill Global Reit raised $337.3 million through its rights issue. Unitholders of CapitaMall Trust, CapitaCommercial Trust, Ascendas Reit and Saizen Reit have together dug out $2.16 billion from their piggy banks. Frasers Commercial Trust is raising $214 million in a three-for-one issue. Owning a Reit is not cheap.

It has not been rewarding either. The Straits Times Reit Index has underperformed the benchmark Straits Times Index almost every day in the past 12 months. Despite some recovery since March, Reit returns are still some 15 per cent behind the equity index. Unit prices have been driven down by concerns over refinancing and worries that commercial or industrial rentals will not get sprightly, and that hospitality rates will remain depressed. Continue reading →

Comments Off on Despite cash calls, Reits are doing well

Posted in Funds

Tagged ,

Demand up as international school opens

Posted on 29 Aug 2009 | Comments Off on Demand up as international school opens

Flood of inquiries despite $20k fees at Stamford American International
The Stamford American International School has started classes on its temporary Lorong Chuan campus. It takes in children between the ages of two and 18, and offers the International Baccalaureate and American Advanced Placement Diploma programmes. — ST PHOTO: MUGILAN RAJASEGERAN

MORE STAYING PUT
‘According to an internal survey, we estimated that about 2,000 expatriate students would leave Singapore this year. But to our surprise, this has not been the case. Not only are families staying on, but we are also seeing new families who just moved to Singapore this year applying for places in the school.

Mr Brian Rogove, Cognita’s chief executive officer for Asia

SINGAPORE’S newest international school was officially opened yesterday, and already, demand for places is heating up despite fees that run to $20,000 a year. Continue reading →

Comments Off on Demand up as international school opens

Posted in General

Tagged , , ,