Summary of September 2016 Transactions


This was a busy month for me at work and I have not bought or sold anything on the market. I have subscribed to Soilbuild REIT preferential offering (Soilbuild Launches Preferential Offering to fund Bukit Batok Connection Acquisition) and also applied for excess as well.

I have received my Soilbuild REIT shares and partially of the excess I applied for. Soilbuild REIT is now 4% of my stock portfolio in terms of value. With the proceeds from the preferential offering, Soilbuild REIT has completed the acquisition of Bukit Batok Connection. The stock price of Soilbuild Business REIT went up from S$0.685 to S$0.72. This is definitely a piece of good news for investors but we still need to observe if the REIT can hold the fort well.

The Fed has decided to hold off interest rate hike for now (Why Fed Decides Not to Increase Interest Rate). This has in a way stimulate the stock market to continue its uptrend for now.

Some REIT are planning way ahead of the Fed interest rate hike. Examples are Cambridge Industrial Trust (Cambridge Industrial Trust 100 Million Loan) and Soilbuild REIT (Soilbuild Business Space REIT 45 Million Loan). The two REITs have took up unsecured loan facility to refinance their current loan. In a way or another, they have hedged or engaged in a fixed interest rate that mitigates the risk of a possible interest rate hike by the Fed in the near future.

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