Furore
2022-03-25

In short, buy $Lendlease Global Commercial REIT(JYEU.SI)$, apply for its rights shares, apply for excess rights shares.

I've been recommending to buy Lendlease many times before. I've even went to the extent of writing an article to share whether Lendlease is a buy, just a week ago. That's because I believe there's a lot of growth potential in this young company, further increase in DPU and ultimately share price growth over the years.

Shortly after I posted that Lendlease article, LREIT had a trading halt and announced a private placement together with a rights issue, after the trading halt was lifted. Before the trading halt was lifted, again I commented that LREIT is a buy not to be missed.

After the trading halt, it dropped to lowest of $0.755 before going up to $0.77 on Wed and further up to close at $0.825 on Thu.

So is it still a buy after it went up by so much?

Singapore government has already announced that there are plans to redevelop Jurong East into the second CBD quite some time ago. There were talks of HSR development which subsequently fell through. However, the government said that HSR would only be a nice boost and bonus to the second CBD and HSR failure was a possibility that was already factored in during planning of the CBD.

The private placement and rights issue is to raise funds for the 100% acquisition of JEM. JEM is located right next to Jurong East MRT and already has a very high footfall. With JE becoming the second CBD in the future, it will bring even more footfall to this place.

What I personally foresee will be an upward valuation of the JEM property's value as well as steadily increasing rental leases over the years. This could translate into a steady DPU growth and increase in share price over the years. This will be a good investment to buy and really hold for long.

However, I'm not a professional analyst or a stock guru. I've also lost a lot on other trades like CAO, MUST, SEA, Wing Tai etc. My views on Lendlease could also be biased as I'm vested.

Although I would strongly suggest this as a buy, everyone has to do your own due diligence before making any trade decisions.

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Comments

  • ClarenceNehemiah
    2022-03-25
    ClarenceNehemiah
    I have't concern about REITs before, can you share more details on invest on this? THX
    • BizkitReplyFurore: 
      not everyone will get right?
    • Furore: 
      verify how they will contact you to inform you about the rights shares application.
      Eligible shareholders will be entitled to apply for excess rights shares on top of their entitlement. Once the
    • Furore: 
      desired amount of rights shares to be purchased has been communicated, the custodian broker will usually deduct away the equivalent amount of funds based on the number of rights shares applied. Once
    • Furore: 
      custodian brokers usually will inform clients about rights issue and how much they want to apply via various communication methods such as emails, app in-box, sms etc. You may want to call Tiger to
    • Furore: 
      I am not sure if I quite understand your question.
      Purchasing this stock is similar to purchasing any stocks around the world.
      But if you are asking about rights issue (I am not too sure about Tiger),
  • Anselo
    2022-03-25
    Anselo
    Pretty good analysis on JEM footfall.  Would be good if you can also share on what are lendlease portfolio of buildings.  If JEM revenue and assets make up substantially all of lendlease will be good.
    • Furore: 
      You can go to my profile, search for my post on 17/03.
      "Is Lendlease REIT a good investment?"
      All the properties under LREIT are listed in that article, you may refer to it.
  • Kaixiang
    2022-03-26
    Kaixiang
    Let’s not forget thaf $Lendlease Global Commercial REIT(JYEU.SI)$ also has Sky Complex in Milan, which houses Grade A office buildings. That’s another good asset too [Grin]
  • Guy
    2022-03-25
    Guy
    As you recommend it so much, do you think it's the good time to buy now?
    • Furore: 
      If you're a short term trader going for quick profits, I can't advise you.
      If you're a long term investor, my personal opinion is yes. This stock is good to buy and keep for long.
  • Vincxie
    2022-03-25
    Vincxie
    This is not for quick profits , its for mid to long term investment, and if you like quarterly dividend.
  • koolgal
    2022-03-25
    koolgal
    Thanks for your excellent analysis on Lendl Lease Reit.  It is certainly an exciting time for them to acquire 100 %Jem.  I can also see the future potential of 2nd CBD.  The only worry is dilution.
    • koolgalReplyFurore: 
      Thanks for  sharing your insights and knowledge on this.  Appreciate it.
    • Furore: 
      You can counter dilution by
      - applying for excess rights shares
      - periodically buying from the market
      - buying more whenever there's a private placement
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