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Prime US REIT Makes 2 Accretive Acquisition to Boost Dividend Yield to 8%
By Investment Moats  •  June 25, 2021
At the start of 2021, Prime US REIT set the theme for 2021 to be the year of growth. Yesterday, Prime US REIT announced the acquisition of two U.S Grade A properties. These properties would be yield accretive. Prime US REIT currently trades at US$0.88. Based on the annualized distribution of their second-half 2020 distribution, the DPU $0.0684, the historical dividend yield is 7.77%. If you look up my Dividend Stock Tracker, you would notice that it is one of the higher yielding stocks. Perhaps, Prime US is a higher yielding dividend stock with less overhang compare to other higher yielding dividend stocks. The two properties will cost about US$245.5 mil. Prime US REIT will finance the acquisition with: The debt of around $164.5 milPrivate placement of 100 mil shares at US$0.809 which comes up to $81 mil The following figure shows the change in DPU after the acquisition, funded...
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By Investment Moats
Investment Moats is set up by Kyith Ng and have been around since 2005. He aims to share his experiences making sense of money, how money works and ways to grow his money. It hopes that by sharing his experiences, both good and bad, season investors can advice and critique his decisions and new investors can learn from them and find their own style ...
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