Investors looking to ride the coming rate cuts with Reits should be prepared to be tapped for funds from time to time
THE first message that appeared on my phone last Tuesday (Sep 3) was from a longtime investor in real estate investment trusts (Reits), complaining about the impact that CapitaLand Integrated Commercial Trust’s (CICT) latest acquisition and equity fundraising plans might have on the market price of its units.
“It creates a lot of ‘overhang’ on the stock,” he grumbled.
CICT’s manager had called for a trading halt that morning, and announced that the Reit will acquire a 50 per cent interest in Ion Orchard from its sponsor group CapitaLand Investment (CLI) at an agreed property value of S$1.85 billion.
