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MIIF
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Farmer
Master |
05-Sep-2007 15:45
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Sohguanh, agree with you that we should "see open abit" on this issue and not to sold shares at a loss. I actually didn't aware of this incident highlighted by mw since I first bought it much later at below $0.95. It has been said that Management is one of the most critical criteria when deciding on a good company to buy for long term investment - dun know whether it applies to reits? I believe the point mw's trying to bring out is the experience / trustworthiness of the current mgmt. Can they be trusted with our hard earn $$? |
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sohguanh
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05-Sep-2007 13:36
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Farmer: i tink musicwhiz is too bothered by management decision not to pro-rate the dividends for those shareholders who buy the newly issued units. to me personally obviously pro-rating is a fairer way to distribute dividends but in reality i will not sold at a loss juz becuz of this decision. why go against a REIT that pay good dividends? why get jealous of others who so called 'earned' the dividends? share trading is like that. reit is no exception. there will be ppl who buy high and who buy low but they still get same dividend for each lot. to me as long as got monies take see open abit lar. look on bright side with more NEW shareholders that means the the stock is more heavily traded and company got more monies to acquire more yield accretive assets. look at big picture! :) |
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Farmer
Master |
05-Sep-2007 11:58
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Dun know if anyone had read this articles from "Musicwhiz" posted in July....any comments? Investment Mistakes Part 4 ? Company?s Management To continue the series on investment mistakes, my next mistake was to buy a company in which I had no faith in the Management. The ?company? in question was actually Macquarie International Infrastructure Fund (MIIF for short). This was actually an infrastructure fund which invested in assets such as airports, toll roads and oil storage tanks. I purchased 3,000 shares at S$1.15 on May 27, 2005 and sold out at 95 cents on Dec 15, 2005, incurring a loss of 17.1%. The selling occurred after an EGM held by the company to approve the issue of new units in MIIF to fund the purchase of additional assets which were yield-accretive. The strange thing was that these new units would rank pari-passu with existing units in that they were entitled to the dividend of 3 cents per share promised to shareholders as at Dec 31, 2005. The circular did not attempt to explain this and I was left wondering what Management?s explanation would be. I therefore made it a point to attend the EGM to ask questions of the Management. It would be my first experience with the Management of the companies I own and would open my eyes to the importance of talking to the people in charge of the company (or in this case, the fund). Many shareholders bombarded the Management with the same question, apparently because they were disgruntled that the ?new? shareholders would be entitled to the same dividend as existing shareholders when they were only vested from mid-Nov 2005 till Dec 31, 2005. By right, the dividend should have been pro-rated to the amount of time the new shares were in issue till year-end. In fact, Suntec REIT had done exactly the same thing when they issued new units to fund the purchase of the remaining space by minority tenants. The new shares which Suntec REIT issued were only entitled to the pro-rated dividend, and the Management took pains to separate the dividend into two components, one for existing shareholders and one for existing and new shareholders. In MIIF?s case, the CFO and CEO could not give a convincing explanation as to why this was NOT done, and many of the shareholders (myself included) felt shortchanged and bullied. This incident showed that Management was not sympathetic to existing shareholders who have stood by the fund since its IPO. After the EGM, I thought over the incident for a few days and then promptly sold off my shareholdings for a loss. Lesson Learnt: Always try to engage Management on issues relating to the company if you can, be it through emails, EGM or AGM (most common method). It need not be about the issue I described above; discussions may range from the company?s prospects, strategies undertaken, markets targeted, customer base, product range, revenue streams and margins just to name a few. I have had the fortune of meeting the Management (including the chairman and CEO) from Ezra as well as Swiber and engaged them on several aspects of the business. Most of the time, things to look out for would be their manner in answering queries, their attitude, how willing they are to open up, whether they are evasive and how passionate they are about the business. Do also note that Management may get over-zealous about their business prospects but it is up to the discerning and intelligent investor (to quote Benjamin Graham) to sift out the yarns from the facts. Always keep an open mind and think over what Management has said, in order to draw conclusions and insights. |
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Pinnacle
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04-Sep-2007 21:44
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Based on chart, MACD and RSI is showing that this is picking up. The MA is relatively Flat. Note that due to current volatile market, I used a relative shorter duration for all the analysis. Based on fundamental, this is relatively undervalued. So are many other REITs and Trusts, which are over-sold. |
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Applet123
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04-Sep-2007 21:09
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From the charts, it seem like this counter is going to go up soon. What do you think?? |
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Pinnacle
Master |
29-Aug-2007 08:25
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MIIF AGREES TO SELL BRUSSELS AIRPORT INTEREST Macquarie International Infrastructure Fund Limited (MIIF) today announced that it has agreed to sell its 3.2 per cent interest in The Brussels Airport Company (Brussels Airport) to Macquarie Airports Limited (MAp), subject to closing conditions including MIIF shareholder approval at an Extraordinary General Meeting (EGM) expected in November 2007. The interest to be sold represents 6 per cent of MIIF?s portfolio by value1. MAp?s offer price for MIIF?s Brussels Airport stake amounts to ?52.8 million (S$109.6 million2). The offer price is consistent with MIIF?s Brussels Airport valuation3 of 30 June 2007 and will be adjusted to reflect that valuation rolled forward to the date of transaction completion (expected in November 2007) and for any distributions declared and/or paid until that time. MIIF will use the sale proceeds to repay the drawn balance on its debt facilities, which will increase MIIF?s ability to pursue further investment opportunities in Asia. Mr Gavin Kerr, Managing Director of MIIF?s manager, said: ?Brussels Airport, an investment since MIIF?s IPO in May 2005, has performed strongly since its acquisition. We believe the offer price for Brussels Airport reflects this performance and is very attractive. The offer price equates to an EV/EBITDA multiple of 14.1 times4 for the 12 month period ended 30 June 2007. The sale of Brussels Airport will enable MIIF to realise an attractive internal rate of return of approximately 44 per cent per annum5 since its acquisition.? The sale of Brussels Airport is in line with MIIF?s commitment to maximise value for shareholders and, over time, to progressively move its portfolio of assets to be more focused on Asian infrastructure. ?MIIF continues to develop a strong pipeline of Asian investment opportunities, which it expects will lead to investments in value accretive Asian infrastructure assets this year. MIIF has the option of utilising its existing debt facilities as well as divesting some of its non-Asian assets such as Brussels Airport to fund its Asian deal pipeline,? Mr Kerr said. MAp is managed by a subsidiary of Macquarie Bank Limited (MBL), Macquarie Airports Management Limited (MAML). MIMAL, the manager of MIIF, is also a subsidiary of MBL. John Roberts, Chairman of MIIF, is an Executive Director of MBL and an alternate director on the board of MAML. Save as disclosed, none of the directors or controlling shareholders of MIIF have a material interest, direct or indirect in the above transaction. |
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Farmer
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28-Aug-2007 14:31
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CAC is the only assest among MIIF's overall portfolio that is currently valuated below its acquired price. More details needed to justify the acquisition consider the fact that it's done outside of Asia which otherwise should have been guided by the management. |
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Pinnacle
Master |
28-Aug-2007 12:45
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MIIF - Canadian Aged Care to Acquire Long Term care portfolio. |
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Farmer
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17-Aug-2007 21:57
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Thanks Pinnacle but this's yesterday's new.  I Q for 99.5 today but didn't get it. Will try again next wk. |
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Pinnacle
Master |
17-Aug-2007 21:44
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Macquarie International Infrastructure Fund (MIIF) announced that the Taiwan Broadband Communications group of companies (TBC), in which MIIF holds a 20 per cent economic interest has successfully completed the refinancing of its existing debt facilities, providing for a net distribution to MIIF of US$49.2 million (S$75.6 million). MIIF will use the proceeds to repay part of the drawn balance on its debt facilities, which will put MIIF in an excellent position to pursue further investment opportunities in Asia. TBC raised three new facilities totalling NT$14.5 billion (S$672.7 million), US$258 million (S$396.2 million) and US$100 million (S$153.6 million) respectively, which includes term debt and facilities for capital expenditure and working capital purposes. The new facilities have been entered into with TBC?s Taiwanese and international banking partners and financiers. TBC has implemented a hedging programme consistent with existing MIIF policy, in order to manage any risk of increased interest rates in Taiwan and exchange rate movements. Over the short to medium term, cash flows of MIIF?s assets are relatively insensitive to changes in interest rates due to significant interest rate hedging. |
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KiLrOy
Master |
13-Aug-2007 15:52
Yells: "I buy only what I can see." |
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Sorry I meant ' .. profit stop for it at 0.98'. Anyway its 1.08SGD now so something good to cheer abt. :) |
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KiLrOy
Master |
13-Aug-2007 15:27
Yells: "I buy only what I can see." |
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sohguanh, In a bigger picture I do have other stocks which are not dividend AND ReIT play. We all know the fastest way to make money is in stocks and its not thru dividend but capital gain. For ReIT investment, both capitial and dividend are inportant to me. No doubt MIIF ReIT may have good fund operations and deliver year to year high div yield but if it doesnt progressively trend upwards but display a 'seasonal' cycle pattern, I WILL take advantage to lock in profit and buy again at MY prediction cycle low. I will continue to have interest in this counter as long as it pays good div yield and goes according to its 'seasonal' cycle, it will be profitable. My last few lots are at 0.89SGD which I bought in last SEP and I have a profit stop for it at 1.008 to lock in some profit before it turns RED if you must know. If it trend up past 1.15SGD and break 1.24 instead, I will only have myself to curse for selling the initial lots. But then again, whats there to curse when the money is out of the risky market. We may not think or execute alike for ReIT and as you said as long as we make money, that is the utimate aim. |
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Farmer
Master |
13-Aug-2007 15:08
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Thanks all! KiLrOy is absolutely correct in his first sentence. I also believe MIIF and REIT are differently creatures in terms of rewarding performance fee/issue of performance shares if outperform. That is why I'm a bit skeptical on its current assets valuation and ask for more opinion on fair price. But ultimately, it should remain a part of one's overall portfolio.
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KiLrOy
Master |
13-Aug-2007 15:02
Yells: "I buy only what I can see." |
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Pinnacle raised an important reminder. For ReIT valuation, EPS and PE do not apply. There was a booklet on how to invest in ReIT I read sometime back. |
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sohguanh
Veteran |
13-Aug-2007 14:59
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KilrOy: if capital gain are wat is more important to you then MIIF and other REIT stocks should not be in your strategy isn't it? the reason REIT and business trust are IPOed is for their pure dividend yield play. since you decide to sell by all means sell. you should target other stocks instead. trying to treat them like other playable stocks is farnie but i guess when tok abt making monies no1 care whether it is a REIT or watever isn't it? happy investing. hope you make lotsa monies :) |
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KiLrOy
Master |
13-Aug-2007 14:53
Yells: "I buy only what I can see." |
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If you look back all the way to 2005, you will noticed that this counter DID hit a high of 1.24SGD and thereafter it plummet to a low of 0.80+ before coming up again. This historic cycle proved to me that this stock may not be worth holding long term as one may missed out on the ability to profit from the capital gain from the cycle on top of the yummy dividend. I sold a fair bit of it in MAY 2007 when it failed to break past the 1.24 in APR which on hindsight I should have sold all of it. I guess the element of hope that it will break past 1.24SGD made me kept some (bl00dy emotion!). No prize for guessing what I am going do with my remaining lots prior to XD. hehe. |
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Pinnacle
Master |
13-Aug-2007 14:46
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Look below: "Positioning it to take advantage on short notice of any new acquisitions opportunities that meet MIIF?s investment criteria, MIIF raised an additional S$200 million in revolving credit facilities in July 2007 which could be used for bridge financing equity commitments. A group led by Australia and New Zealand Banking Group Ltd and DBS Bank Ltd arranged and provided a S$100 million tranche of additional debt facilities. The transaction was open to only a limited number of selected banks and was well supported. The other tranche of S$100 million was provided by United Overseas Bank Ltd. " They are still expanding, hence NAV will improve further. For REIT, thats what you look at. Not gearing ratio or PE as that will scare the hell out of you. MIIF 52 wk high is $1.23, current NAV based on their unaudited report is $1.26. Well, now is a good price to go in. But you may also wait a while to see whether it will go to $1.00 if US crashed again tonight. But the truth is, REITs are for long term investment, because their price do not have big up and down, so these few cents are not going to make a lot of different. I'm already vest here since early of the year. Currently targetting at other REITs or Trust which offer very good price now. Lookout for First REIT, FSL and Babcock.. 
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sohguanh
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13-Aug-2007 14:27
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Latest Edge issue say Macquarie open market sales of MIIF so that can partly explain the drop in price. They need funds for future acquisition I believe. But at the same time they issued themselves new units for their performance. Having said all that, current price is quite attractive though :) |
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Farmer
Master |
13-Aug-2007 14:26
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I'm not only vested for the long term but looking to expand my holding if price is right(~$1). Pinnacle, can kindly share at what price will you consider adding if you intend to do so? |
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Pinnacle
Master |
13-Aug-2007 14:17
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I agreed with Kilroy to catch it cheap. But the million dollar question is, how to consider cheap? Current share price below NAV + dividend is also consider cheap. NAV is the amount sharesholder will get if they liquidated all their asset. So you get more than the share price now! Well everybody has their own ruler, so have to do your own judgement. I'm vested here for long term, so I'm fine with the up down movement before and after CD. MIIF had shown that they are actively looking for opportunity that fit their portfolio for acqusition. So more upside to their NAV. |
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