Monday, August 10, 2015

Journey To Retirement Part 11.1 -- Kep REIT

The recent earning release in July 2015 has seen a change in the Reit dividend policy; the start of the option scrip based dividend scheme.  That was not surprising at all given that at this junction of time it was an appropriate move for the company.  Kep REIT is one the S-Reit in current market to have a high gearing ratio and with the impending US Fed rate hike, preservation of capital through the scrip dividend scheme will enable the company to have the cash to repay loan and lower its gearing.

The Kep REIT share which I obtained in 2013 was from the entitlement from being Kep Corp shareholder, meaning coming at zero-cost at all.  Since then, I just put it aside to collect cash dividend (not much in term of absolute amount) and I also not willing to put in more capital to increase the holding given that the price level is not deem to be cheap from my perspective.  However, the latest move of scrip dividend prompted me to take action to it.

Adopting the Sun Tzu Art of War Chapter 3 — Strategic Attack (第三篇,谋攻篇) method, I am beginning to increase my holding in Kep REIT.  Cannot ignore the fact that I could be incurring some realized loss in executing the strategy, I am not at bother about those loss as I have mean to eventually recover those loss to make the holding at zero-cost.

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