Sunday, 13 March 2016

Saizen Reit

I will remember Saizen Reit fondly despite the short acquaintance with this counter.

 After going XD for the special dividend this week, all assets of Saizen Reit are gone and it becomes a cash holding, though it will continue trading on the stock exchange for the time being.

I bought Saizen Reit when it was announced that there was a firm offer to acquire all the assets of the Reit.  The stock value has already crept up from $0.80+ to $0.90+.  As Saizen Reit's NAV is $1.10+, I thought it makes no sense to the owner to sell too much below the NAV.  So, I bet that it would be sold near to its NAV.

Despite my small investment in Saizen Reit, it is setting records and milestone for me:

1. The special dividend declared for Saizen Reit will be the highest one-time dividend payout that I received so far. Hope this record will be broken in the future.

2. After XD, Saizen Reit becomes the lowest priced stock in my portfolio. Hope this record will not be broken.

3. The special dividend from Saizen Reit gives a great turbocharge to my 2016 dividend projection.  The full year dividend is projected to exceed $12K for the first time in my investment journey.

I will not sell off my Saizen Reit now and will wait for the delisting cash payout.  Maybe Saizen Reit could yet surprised us with a RTO......
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6 comments:

  1. Ellaa William13 March 2016 at 05:19

    I will remember Saizen fondly too! Bought a little in Feb 2015 with some spare cash, and it has turned out so well. A little bit sad to see it go in fact!

    ReplyDelete
    Replies
    1. Passive Income Farmer13 March 2016 at 07:14

      Hi Ellaa,

      Thanks for your visit and comment.

      Cheers,
      Farmer.

      Delete
  2. Unknown13 March 2016 at 08:33

    I am going to miss Saizen. I got it early when the price was below 90c. Didn't had the runaway to continue adding more shares before the news were announced . What a pity

    ReplyDelete
    Replies
    1. Passive Income Farmer13 March 2016 at 19:20

      Hi PI Trooper,

      Yes, what a pity. Saizen Reit is a unique REIT.

      Delete
  3. joel13 March 2016 at 18:19

    I will recognize the special dividend as capital gain rather than dividend so it won't skew my numbers cus it is not recurring

    ReplyDelete
    Replies
    1. Passive Income Farmer13 March 2016 at 19:35

      Hi Joel,

      Thanks for your comment. Officially it is called special dividend. And also it is for consistency as I recognized previous special dividends (e.g. SPH, SingTel, etc). I will recognize capital gain only after selling, but currently I am still holding Saizen Reit.

      Own record only, no need to go for auditing. Haha.

      Cheers,
      Farmer.

      Delete

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