Sunday, April 28, 2019

Perennial AGM 2019

I went to the Perennial AGM on 25th Apr held in their own Capitol Theatre.

Management had shared the below key points during AGM:
1) Capitol Piazza is undergoing rebalancing of tenants mix. Target to complete by Q3 2019. New tenants names was not mentioned, citing confidential.
2) Perennial had signed MOU with SPH (Link).
3) Management is open to explore opportunity to dispose off assets if the price is right, especially AXA tower. This was demostrated of their ability to unlock value through the recent dispose of Chinatown Point (Link).
4) Management only replied "Noted on shareholders concern" for below raised by shareholders:
     - Low dividend yield
     - Declining of shares price
     - Request for more detail breakdown of individual properties performance
5) One shareholder asked will Management focus more into China moving forward? Management responded "No specific country in target. They will go into whichever country that can make the most money". Management also shared projects such as Goodluck Garden, Ghana and Penang are more for Build to Sell rather than Build and Operate.
6) Perennial required high CAPEX, especially in China High Speed Rail (HSR) project which takes years to complete, one shareholders asked why Perennial not going more into asset light? Management responded their strategy is to be both the Owner + Operator. By just been Operator (Asset light), they need to keep going around to 'beg' for contract to be awarded to them.
7) One shareholder asked if building hospital, eldercare and etc in the HSR plot is feasible. Management responded that even the China government believe this is feasible, else the China government will not award a few HSR plot to Perennial.
8) One shareholder asked why there was not much insider trades this year as compare to 2018 as the share price is lower than last year. Management responded that a certain amount of public/free float is required.

Not much surprise on the result of the AGM resolution given that the four sponsors own 82.3% of Perennial.

Ceiling of Capitol Theatre

Bento Set

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