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Mapletree North Asia Commercial Trust: Should You Receive Your Distributions in Cash or in New Units of the REIT?

Mapletree North Asia Commercial Trust: Should You Receive Your Distributions in Cash or in New Units of the REIT?

I received a mail in my letterbox over the weekend from Mapletree North Asia Commercial Trust – a long-term investment of mine (in case you’re wondering, I have gotten the mail because I invested in the REIT via a CDP-linked brokerage account.

This post was originally posted here. The writer, Lim Jun Yuan is a veteran community member and blogger on InvestingNote, with username known as ljunyuan and has 1083  followers.

If you invested in the REIT via a custodian account, you should receive the same message in your brokerage account and if you don’t, you can contact your brokerage firm to enquire.)

In the letter, I was asked to state my preference to either receive the distributions (declared when the REIT announced its fourth quarter and full year 2020 results on 29 April 2020) in a form of cash (of S$0.00496 per unit), in a form of new units of the REIT (which will be computed based on the unit price of S$0.8752 per new unit), or a combination of both.

By default, all unitholders will receive their distributions in a form of a cash payout (unless you state your preference to either receive units of the REIT, or a combination of cash and units of the REIT by 04 June 2020.)

One of the questions on my mind (and very likely the minds of many unitholders) are – how do I calculate the number of new units of the REIT I will receive (if I opt for this option), and which option is more “worth it”?

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