Friday, May 22, 2015

Singapore Business Trusts Averaged a Dividend Yield of 6.9%

  • Following the completion of acquisition of Keppel Infrastructure Trust by CitySpring Infrastructure Trust on Monday, this brings the total number of Business Trusts listed on SGX to 10.
  • CitySpring Infrastructure Trust (“CIT”) has been renamed “Keppel Infrastructure Trust” and the enlarged trust will adopt the existing CIT stock code of “A7RU”. In addition, the former Keppel Infrastructure Trust has been renamed “Crystal Trust” (SGX:LH4U) and will be delisted on Friday, 22nd May.
  • The 10 Trusts have a combined market capitalisation of S$13.8 billion and averaged 8.8% price gain in the year-to-date. They also maintain an average dividend yield of 6.9%, with yields ranging from 12.0% for Rickmers Maritime to 0.3% for Indiabulls Properties Investment Trust.
  • Keppel Infrastructure’s pipeline includes Keppel Merlimau Cogen, Changi Business Park, One-North, Mediapolis, and Woodlands Wafer Fab Park.
Business Trusts allow investors to have direct exposure to cashflow-generating assets, such as utilities, shipping or aircraft. The structure unitises big-ticket assets into liquid and affordable units which are traded on the Singapore Exchange (SGX), giving investors a new alternative to existing yield plays.

On Monday, CitySpring Infrastructure Management announced that CitySpring Infrastructure Trust (“CIT”) has completed the acquisition of the assets and liabilities of Keppel Infrastructure Trust (“KIT”), and the following actions have taken place effective from the date of this Announcement (click here to view):
  1. CIT has acquired all the assets and liabilities held by KIT;
  2. 1,326,319,374 Consideration CIT Units have been issued at the issue price of S$0.496 per Consideration CIT Unit as consideration for the Acquisition;
  3. CIT has been renamed “Keppel Infrastructure Trust”;
  4. Keppel Infrastructure Fund Management (“KIFM”) is appointed as the trustee-manager of the Enlarged Trust
The enlarged trust – Keppel Infrastructure Trust – will adopt the existing CIT stock code of “A7RU”. According to a recent company presentation, some of the key investment highlights of the enlarged trust include:
  1. Acquisition of core infrastructure assets with long-term stable cash flows
  2. Extend average life of distributions
  3. Benefits from Keppel’s continued sponsorship
For more information, click here. In addition, the former Keppel Infrastructure Trust has been renamed Crystal Trust (SGX:LH4U) as of Monday and will be delisted on Friday, 22nd May.

The completion of the acquisition brings the total number of Business Trusts listed on the Singapore Exchange (SGX) to 10. These 10 Trusts are categorised to five different sectors according to the Global Industrial Classification Standard (GICS®). More than half the combined market capitalisation of the Trusts are classified to the Industrials Sector, followed by Consumer Discretionary and Financials.
Source: SGX StockFacts (Data as of 19 May 2015)

Together, the 10 trusts have a combined market capitalisation of S$13.8 billion, and averaged 8.8% price gain in the year-to-date. This brings their average year-to-date and one-year return to 11.4% and 22.3% respectively. They also maintain an average yield of 6.9%, with yields ranging from 12.0% for Rickmers Maritime to 0.3% for Indiabulls Properties Investment Trust.

Details of the 10 Business Trusts are below.
Source: SGX StockFacts (Data as of 19 May 2015)

Source: My Gateway

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