AA Reit Rights at $1.189

 

AIMS APAC (AA Reit) has launched a Preferential Offering/Rights of 35-for-1000 at $1.189 to existing shareholders. Being a small long-time existing shareholder of AA Reit, I am quite surprised that the rights is offered at such a low price. As expected, market sold down unfavourable on this preferential offering news, to even $1.16 below the rights price (close to 1 year lows of $1.13)

With some heavy selling seen even below $1.18, this would be an even cheaper price than the preferential offering price+comission fees if bought over the market. At one point, I was even considering buying from the open market and forfeiting my rights instead. Unfortunately or fortunately 😎, prices recover on Friday to close at $1.22

 

I had been considering to purchase more AA reit for some time in AA reit at $1.3 a good Buy? as I generally consider this as a reasonably small but well managed Reit (vs MIT/MLT/Areit) with prices ranging between $1.2-$1.5 for the past few years, for a reasonable yield of between 6-8%

I would be subscribing to this preferential offering and probably oversubscribing more to round up to 1k shares for long term investments. Hopefully this decision would turn profitable in time to come, both in terms of dividends and capital gains

Would u be subscribing to this preferential offering or what are some of your thoughts on AA reit? Pls feel free to share in the comments below  😊