Seems FLT’s Advanced Distribution Eventually Adjusted to 1.01 cents from 0.69 cents.
It seems Advanced Distribution Amount does change even though an amount was given before hand.
Frasers Logistics and Industrial Trust announced a Private Placement and non-renounceable preference offering in April 2018, to fund the purchase of 21 properties in Germany and Netherlands from its parent Frasers Property Limited.
As there are new units issued, usually a REIT or stock would declare an advance dividend distribution for existing shareholders, which the shareholders who joined later through the preference offering and placement, cannot enjoy.
In the launch of equity fund raising article, it highlighted that an ordinary dividend of $0.0361 was announced. This has since been distributed.
The advance distribution is $0.0069, which is for the period of 1st Apr to 21st May, which is the period before the conclusion of the actual equity raising to ensure fairness.
1st Apr to 21st May is about 50 days, which is 40 days away from a full quarter (90 days).
If we assume the next quarter, FLT earns the same quarterly income available for distribution of $0.0181 as last quarter, a 50 day advanced distribution should be $0.0181/90 * 50 = $0.01.
An advanced distribution of $0.0069 does look very low, and I was disturbed by this.
So I asked the Investor Relations why this is the case.
The Investor Relations personnel explained to me that the advance distribution given is not firmed up.
When it is closer to the distribution date, another declaration should be announced.
According to this, even if its after the ex-dividend date, this figure could still change.
True enough, this week, an update on the advanced distribution was reported:
It seems the IR is right. The final advanced distribution is closer to $0.0101.
So it does change and since its XD we will receive this distribution on August 7.