Unit Price Performance
As the equity market and S-REIT sector
suffered one of their worst quarters
in a decade, K-REIT Asia’s unit price
closed at $0.70 on 31 December 2008,
down 67.1% from $2.13 on
31 December 2007. The Singapore
stock market ended the year down
49.2% as the contagion effects of
the financial crisis in United States
spread across the global markets.
The FTSE ST Real Estate Investment
Trust Index fell by 59.0% during the
same period on the back of concerns
over refinancing and softening rentals.
Market concerns over a share overhang
due to a proposed rights issue kept
K-REIT Asia’s unit price under pressure
during the first quarter of 2008. The
exercise which was announced in
January 2008, was subsequently
approved by Unitholders during an
Extraordinary General Meeting in
March. During the month of May 2008,
there was a spike in trading volume due
to the issue of 396.9 million units under
the rights issue.
K-REIT Asia’s trading liquidity improved
to approximately 120.8 million units
in 2008 from about 104.4 million units
in 2007.
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