SINGAPORE (Oct 1): Investors are being spoilt for choice when it comes to stockpiling their portfolios with real estate investment trusts. So far this year, unitholders who own Frasers Logistics & Indus­trial Trust, Manulife US REIT and ESR-REIT have had the opportunity to buy more units through either preferential equity fundraising or rights issues. Over the next few weeks, unitholders of OUE Commercial REIT and Keppel-KBS US REIT will be able to accumulate more units. OUE Commercial REIT has announced a dilutive rights issue. Keppel-KBS US REIT plans to fund the acquisition of a portfolio with a preferential equity fundraising of about US$101 million ($137.9 million) and debt of US$69 million. 

REITs have also been eager to attract new investors through placements. These are relatively quick and painless to current unitholders as they are not dilutive in general, and can be executed overnight with only minor discounts to the prevailing price. In addition, existing unitholders are entitled to an advanced distribution for certain ­periods, up to the date before the new units are issued. 

Upcoming placements are likely to include one by CapitaLand Mall Trust. It will hold an extraordinary general meeting on Oct 28 for unitholders to vote on the acquisition of 70% of Westgate for $805 million from CapitaLand

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