Last week I attended the Keppel-KBS US REIT (KORE) AGM and left feeling a bit uneasy about some of the responses given during the AGM. As such, I gave myself a little homework to verify / cross check some of these responses. Here are my findings.
On Rights Issue Circumstances
It was represented during the AGM that the reason they had to issue rights at a huge discount to NAV was due to a “perfect storm of bad news”. This comprised of the trifecta of a US-China trade war, Aggressive Fed Rate Hikes and Potential tax regulation issues. So it was either miss out on a good investment opportunity or issue dilutive rights.
I decided to do some fact checking on this statement to evaluate management decision making prowess and here is the timeline I was able to verify.
Timeline of Events Mar 22 2018 – Brinkmanship in