Well, Prime Reit has hit $0.975 in the afternoon trading and it is now trading below it IPO price (Hope that it will not close below it IPO price today). Look like Prime Reit will be the first REIT counter that is trading below it IPO price in the recent years since SGX started trading of REIT counter. Does this mean that REIT counter has lost it shine in Singapore market? How will this affects Centrepoint, F&N and other properties counters like UOL, UIC, Keppeland, etc in raising their fund. Will this affect their plan of offering REITs. With the recent interest rate hike, look like REIT counters will need to offer higher yield in order to attract investor to park their fund. There is only two ways to acheive that; one is the downward movement of the share price, while the other is to increase their revenue so that the DPU they paid out will make the share price look attractive. More work for the REIT management to improve yield :)
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Well, it really closed below it IPO price @ $0.96. Yield now is around 5.22% based on the the information on the Prospectuse.
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