Frasers Logistics & Industrial Trust just concluded its private placement (KPO did not get an offer this time round unlike Keppel DC REIT Private Placement which was a pleasant surprise!) and provided more information on the preferential offering to fund its proposed acquisition of 21 prime industrial properties in key global logistics hubs in Germany (17) and the Netherlands (4). You can find the official announcement here.

Some of the readers may know that KPO secretly loves rights issue as it provides an opportunity for existing shareholders to increase their investment at a much lower cost and without any commission as compared to buying off the market. Having said that, not all rights issue is good and there is a need to evaluate whether the cash call is beneficial to the existing shareholders.

Current/Latest Numbers
Price: $1.09
Dividend/Distribution Per Unit (DPU) for FY2017: $0.0701
Dividend Yield (Assuming DPU remain constant for FY2018): 0.0701 / 1.09 = 6.43%
NAV …