I shared in the recent session sharing last week that there is beauty for Reits to grow through organic and inorganic means even though they are mandated to pay out most of their earnings to shareholders as dividends.
I also spoke about how the role of the management becomes very important because their competency will determine the direction of the Reits. There are good Reits around that is able to increase shareholder's value over time, which will eventually be implied by higher dividends and stronger share price. There are also lousy Reits which will eventually be a dumping ground from their sponsors. I will not talk about this at this point.
One of Accordia's catalyst is through M&A activities for which the idea is to gear up more over time and buy accretive golf assets from its parent. Their current low gearing at 28% loan to value ratio would enable ...