Attended the SIAS RHT dialogue session.
I would say there is nothing new coming from the CEO, as should be expected.
There were questions about valuation and SGD/INR FX. I would say just read the circular. FX is not something the manager can control. So what the manager has done is to fix the price at the FX rate a day before 30 Sep. Anything below this rate when the actual transaction is closed, unitholders will not be affected. However if there is any upside, unitholders will benefit from the extra few cents (hopefully). Again, these are found in the circular.
The CEO reiterated that it is the fiduciary duty of these trust manager to review any offers and present them to the unitholders for their approval/disapproval. One unitholder noted that no matter what, the related proxies will just vote in favor and the deal will go through.
One unitholder suggested that resolution 2 should be to just wind down the trust and distribute the remaining 5%, since it is likely that the shell will follow the footsteps of Saizen REIT with nothing done and having to wait for 1 year before delisting.
One unitholder asked why First REIT and Plife REIT are trading at a higher premium to book unlike what what was offered to RHT. I think CEO mentioned that that is because their revenue is in SGD, no FX risk, so RHT trades closer to book instead.
CEO mentioned that the risk is always there when the assets are overseas.
(This is something I think is valid and something we all should be mindful of the next time we want to invest in companies or trusts that hold assets based in a single country)
The CEO stated that Tier 1 hospitals (for the well to do class), the ones the trust owns, face oversupply and it is the lower Tier hospitals that are in demand (I believe this is what he is saying). So it is not correct to say healthcare is in demand in India without considering the different income demographics.
The CEO pointed out that additional regulations have caused revenue pressure and we cannot expect the kind of growth that was experienced years back.
One unitholder harped on the 3% annual rental escalation that Fortis operator is paying. The CEO mentioned that this rate is lower than the annual inflation of 4-5% and is not the main growth driver. The driver was actually the performance fees collected from the operator, which had been decreasing.
Resolutions 1 and 2 are exclusive of each other.
Resolution 1 will be passed if votes for exceeds 50% (imo this will be easily passed, even if FHL and RHT minions abstain from voting). See circular page 4: Summary of approvals sought.
No comments from CFO on why he will sell his shares at $0.90+ if he thought the same was a good deal. CEO said this was his personal decision, so he has no comment.
The rest were more of frustration and confusion on the long stop date and FX.
I may have missed out something, so please do add on for those who attended.
Conclusion: I am of 2 minds on whether to vote for or against now.