I tend to avoid those REITs with high gearing ratios, even though they have high yields, knowing that there are higher chances of them asking for placements . Cash calls to me is like you have no intention to stay with this girl for long, but shit, she got pregnant (cash calls), and you're forced to stick with her.
Reply to @enghoung : same here
A very drama company come complete with a as drama CEO. Now that the son took over hopefully less drama and more action.
Reply to @l0nEr : It's a strategy to give a little more turbo charge to your returns. A high risk, high reward strategy. I adopt it once in a while, selectively...
I think one big part of your analysis lies in your Dividend Yield, which you said in the first sentence that the dividend yield is 10%.
However, that is a very backward looking dividend yield when some rental support are available and IDR might be higher. If you just use the last quarter dividend of 0.003, then u actually get a forward-looking dividend yield of 6%.
Once you change to a 6% dividend yield, your thesis might change.
I think how accretive the acquisition will be is dependent on the forward looking dividend expectations.
Reply to @Incognito : haha. yeah quite the james.
but to their defense, I don't think they ever said they wanted to delist first reit and lippo mall. they said lippo group wants to support the indonesian government policy of starting their own reits, but the properties could had been coming from their other businesses like matahari etc.