Cromwell European REIT (CEREIT) went on a trading halt and announced their intent to acquire 6 new properties in France and Poland for a total of 247m EUR, which is expected to increase net initial yield by 7.4%. To that end, they have raised fund of 150m EUR for the acquisition via a private placement at 0.46 EUR per unit.
Post-placement, the share base is enlarged by 326,086,000 units (about 15%). Consequently, one can expect the distribution down the road to also drop by about 13.1% before accounting for the increase in DPU from the new properties.
You can read more about the acquisition here and here, and the private placement here and here.
Distribution for existing shareholders
To ensure fairness to existing shareholders, the distribution for period 1 Jan 2019 - 1 Jul 2019 will be paid out prior to the issuance of new shares. The stock will go...