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Mapletree s China-focused REIT IPO nearly 30 times
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Lobster
Elite |
10-Feb-2022 18:17
Yells: "Even Adam Khoo believes in the Black Market!" |
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Most Mapletree shareholders have shares in all the REITS in the group, so it' s fine with us... more good terms to MNAC means less favourable to MCT. Merger or no merger, not much difference, although it would be good if we are a bigger unit. | ||||
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Starship
Supreme |
10-Feb-2022 18:04
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Wow, another Sabana Reit saga in the making !!!! MCT will have to up the price ? Activist investor Quarz opposes terms of $4.2b Mapletree Reits merger PUBLISHED 4 HOURS AGO SINGAPORE (REUTERS) - Activist investor Quarz Capital Management said it is opposed to the terms of a proposed $4.2 billion merger of two Temasek-linked Singapore real estate investment trusts (Reits), saying the target firm was significantly undervalued. It is urging Mapletree North Asia Commercial Trust (MNACT) to negotiate an improved offer from Mapletree Commercial Trust (MCT), according to a Feb 9 open letter reviewed by Reuters. Quarz, which has previously been successful in blocking a Singapore Reit deal, says it and its affiliates hold stakes that rank them among the top 10 unitholders of MNACT. Quarz and Black Crane Capital voted down a merger between ESR-Reit and Sabana Shari&rsquo ah Compliant Industrial Reit in December 2020. An external spokesman for MNACT and MCT said they had no immediate comment on Reuters' queries. Singapore' s Temasek declined to comment. Its Mapletree Investments, a global real estate conglomerate, is the single largest unitholder in both Reits, owning 32.6 per cent of MCT and 38.1 per cent of MNACT as at Dec 29 last year. On Dec 31, MCT announced plans to buy MNACT, seeking to create the seventh-largest Reit in Asia with an expected market valuation of about $10.5 billion. MNACT' s main portfolio includes one commercial property in Hong Kong and two in China, while MCT is a Singapore-focused Reit. Quarz, which is run by Mr Jan Moermann, a former Swiss banker, said it supports the deal rationale but objects to the merger ratio and price. " Quarz has been approached by many MNACT unitholders on MCT' s inferior offer for MNACT. We agree that the offer is value destructive to unitholders and significantly undervalues MNACT," Mr Moermann and Mr Havard Chi, Quarz' s Singapore-based research head, said in the letter. MCT offered to acquire all units of MNACT in exchange for MCT units, or a combination of both cash and MCT units that gave the target' s unitholders $1.1949 per unit. This represented a 7.6 per cent premium to MNACT' s Dec 27 closing price of $1.11 and was based on MCT' s unit price of $2. The companies said the offer was in line with MNACT' s net asset value (NAV) per unit. Since then, MCT' s units have fallen 8.5 per cent to $1.83 as at Wednesday' s close, while MNACT' s were unchanged at $1.1. Quarz argued in the letter that the offer price represented one of the " highest discounts to net asset value (NAV) in the 20-year history of the Singapore Reit market with multiple takeovers and mergers" . " MNACT' s board and management should initiate a transparent and robust process to sell the assets above NAV of $1.23 instead of recommending the suboptimal offer of $1.08 to S$1.10 from MCT," Quarz said. It added it was confident MNACT would stage a strong recovery from the second half of 2022, citing global vaccination rates. Singapore' s Reit market is dominated by retail investors who are attracted to the high dividends paid by trusts as the firms are mandated to pay out 90 per cent of their rental income. Founded in 2011, Quarz has publicly campaigned against about a dozen Singapore-listed firms. It mustered support to block a merger in 2020 between two Singapore Reits, whose managers are owned by a unit of Asian logistics giant ESR Cayman, marking a rare victory for activist funds in the city-state. https://www.straitstimes.com/business/companies-markets/activist-investor-quarz-opposes-terms-of-42b-mapletree-reits-merger |
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johnwongzz
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08-Feb-2022 13:54
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Did they give the timeline for the merger deal? very quiet,these guys |
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Joelton
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28-Jan-2022 09:17
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Mapletree North Asia Commercial Trust' s Q3 net property income up 13.1%
MALL and office landlord Mapletree North Asia Commercial Trust (MNACT), the target of a proposed merger with Mapletree Commercial Trust, posted higher Q3 net property income (NPI) of S$85.6 million, rising 13.1 per cent from a year ago.
Gross revenue for the three months to Dec 31, 2021 increased 11.8 per cent to S$112.6 million. In addition to the full-quarter contribution from the Hewlett-Packard Japan Headquarters Building acquired on June 18, there was an absence of rental reliefs during the quarter. The year before, rental reliefs totalled S$8.7 million.
For the nine months ended Dec 31, NPI grew 14.9 per cent to S$247.4 million while gross revenue climbed 12.8 per cent to reach S$328 million. This was due to lower rental reliefs, and contribution from the Hewlett-Packard Japan Headquarters Building.
Portfolio occupancy rate stood at 97.5 per cent as at end-December.
Festival Walk recorded full occupancy. The mall' s footfall increased 27.7 per cent and tenants' sales rose 20.9 per cent for the nine-month period. Consumption sentiment was positive amid an economic recovery in Hong Kong and the government' s consumption voucher scheme to boost spending, said the manager.
Gross revenue was up 18.8 per cent and NPI increased 21.6 per cent, mainly due to lower rental reliefs but offset by a lower average retail rental rate.
Average rental reversion for retail leases at Festival Walk was -32 per cent. Average rental reversion at Gateway Plaza was also negative, at 25 per cent.
Gross revenue from Gateway Plaza rose 4.3 per cent while NPI rose 3.8 per cent. This was mainly due to a stronger yuan against the Singapore dollar, but this was also offset by a lower average rental rate.
MNACT' s aggregate leverage ratio edged up to 42.1 per cent as at end-Dec from 41.4 per cent as at end-Sep, mainly due to lower portfolio value.
The average term to maturity of MNACT' s debt was 2.76 years while the Reit' s adjusted interest cover ratio was 4.2 times.
Festival Walk' s average renewal or re-let rental rate is expected to be lower in FY2022 compared to the previous year. But " initiatives to strengthen the mall' s appeal as a lifestyle hub, together with the continued focus in keeping the mall' s occupancy high, will bolster the resilience of the mall," the manager said.
In November last year, the manager entered into a settlement agreement with insurers on the claims for property damage and revenue loss due to business interruption, in light of the protests in Hong Kong.
The amount of S$3.5 million, in excess of the distribution top-ups of S$32.9 million paid to unitholders in Q3 FY20 and Q4 FY20, will be distributed as part of the semi-annual distribution for the period from Oct 1, 2021 to Mar 31, 2022.
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Lobster
Elite |
27-Jan-2022 21:26
Yells: "Even Adam Khoo believes in the Black Market!" |
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Mapletree North Asia Commercial Trust' s Q3 net property income up 13.1%MALL and office landlord Mapletree North Asia Commercial Trust (MNACT), the target of a proposed merger with Mapletree Commercial Trust, posted higher Q3 net property income (NPI) of S$85.6 million, rising 13.1 per cent from a year ago. Gross revenue for the three months to Dec 31, 2021 increased 11.8 per cent to S$112.6 million. In addition to the full-quarter contribution from the Hewlett-Packard Japan Headquarters Building acquired on June 18, there was an absence of rental reliefs during the quarter. The year before, rental reliefs totalled S$8.7 million. For the nine months ended Dec 31, NPI grew 14.9 per cent to S$247.4 million while gross revenue climbed 12.8 per cent to reach S$328 million. This was due to lower rental reliefs, and contribution from the Hewlett-Packard Japan Headquarters Building. Portfolio occupancy rate stood at 97.5 per cent as at end-December. Festival Walk recorded full occupancy. The mall' s footfall increased 27.7 per cent and tenants' sales rose 20.9 per cent for the nine-month period. Consumption sentiment was positive amid an economic recovery in Hong Kong and the government' s consumption voucher scheme to boost spending, said the manager. Gross revenue was up 18.8 per cent and NPI increased 21.6 per cent, mainly due to lower rental reliefs but offset by a lower average retail rental rate. Average rental reversion for retail leases at Festival Walk was -32 per cent. Average rental reversion at Gateway Plaza was also negative, at 25 per cent. Gross revenue from Gateway Plaza rose 4.3 per cent while NPI rose 3.8 per cent. This was mainly due to a stronger yuan against the Singapore dollar, but this was also offset by a lower average rental rate. MNACT' s aggregate leverage ratio edged up to 42.1 per cent as at end-Dec from 41.4 per cent as at end-Sep, mainly due to lower portfolio value. The average term to maturity of MNACT' s debt was 2.76 years while the Reit' s adjusted interest cover ratio was 4.2 times. Festival Walk' s average renewal or re-let rental rate is expected to be lower in FY2022 compared to the previous year. But " initiatives to strengthen the mall' s appeal as a lifestyle hub, together with the continued focus in keeping the mall' s occupancy high, will bolster the resilience of the mall," the manager said. In November last year, the manager entered into a settlement agreement with insurers on the claims for property damage and revenue loss due to business interruption, in light of the protests in Hong Kong. The amount of S$3.5 million, in excess of the distribution top-ups of S$32.9 million paid to unitholders in Q3 FY20 and Q4 FY20, will be distributed as part of the semi-annual distribution for the period from Oct 1, 2021 to Mar 31, 2022. |
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bystander1965
Supreme |
27-Jan-2022 19:33
Yells: "What I say is just my assessment. DYODD" |
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Rev 328m npi 247m yoy increase 13-15%. Not too shabby | ||||
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Starship
Supreme |
10-Jan-2022 10:05
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https://www.businesstimes.com.sg/companies-markets/wealth-investing/mct-mnact-merger-makes-most-sense-when-viewed-from-perspective-of
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Starship
Supreme |
10-Jan-2022 10:03
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Taken fm the MCT thread: MCT-MNACT merger makes most sense when viewed from perspective of Mapletree Investments Unitholders of MCT should vote against the deal, unitholders of MNACT should sell, and everyone should realise Reit mergers are really about the sponsors AFTER digesting the proposed merger of Mapletree Commercial Trust (MCT) and Mapletree North Asia Commercial Trust (MNACT) over the past week, the verdict from the market seems clear: MCT has lost 8.5 per cent of its market value while MNACT has slipped 1.8 per cent. As I see it, the implications of this thumbs-down from the market are 3-fold: Unitholders of MCT should vote against the merger. Unitholders of MNACT should sell their holdings in the market to take advantage of MNACT' s elevated but falling unit price. Mapletree Investments - the sponsor group behind MCT and MNACT - should prepare to address concerns that the merger prioritises its own interests over those of investors who have been supporting its capital management platforms. Under the proposed merger, unitholders of MNACT will exchange each unit they own for 0.5963 of a new MCT unit or 0.5009 of a new MCT unit plus S$0.1912 in cash. The gross exchange ratio of 0.5963 is very much in favour of unitholders of MNACT. Just before the merger announcement, MNACT had closed at S$1.11 while MCT had closed at S$2.00. Given the exchange ratio, units in MNACT were being priced at more than S$1.19 worth of MCT units - or some 7 per cent more than MNACT' s market price. Not surprisingly, since the merger was announced on Dec 31, the relative market prices of MNACT and MCT have moved towards the gross exchange ratio under the deal. On Jan 3, the first post-announcement trading day, MNACT climbed 3.6 per cent to close at S$1.15 while MCT fell 4 per cent to close at S$1.92. MCT has continued falling though, dragging MNACT down with it. On Friday, MCT closed at S$1.83 while MNACT closed at S$1.09. Why is the market seemingly baulking at MCT' s proposal to combine itself with MNACT? Merits of merger Much like every other real estate investment trust (Reit) merger proposed over the last couple of years, the combination of MCT and MNACT is premised on the idea that bigger is better. MCT currently owns 5 Singapore-based properties worth S$8.8 billion, while MNACT holds 13 properties worth S$8.3 billion located in China, Hong Kong, Japan and South Korea. The combined entity - to be named Mapletree Pan Asia Commercial Trust (MPACT) - would be more diversified in terms of assets, geography and tenants. MPACT is also expected to be among the 10 largest Reits in Asia, putting it in a stronger position to garner an investor following. On top of that, the merger is expected to be immediately accretive in terms of distribution per unit (DPU) and net asset value (NAV) per unit for unitholders of MCT. On a proforma basis, MCT' s DPU for the 6 months to Sep 30, 2021 would have been boosted by as much as 8.9 per cent. Its NAV per unit as at Sep 30, 2021 would have been lifted by as much as 7.1 per cent. Higher valuation unlikely However, MCT has a better performance track record than MNACT. Since its initial public offering (IPO) in 2011, MCT' s DPU and NAV per unit have grown by compound annual rates of 4.8 per cent and 6.3 per cent, respectively. MNACT' s DPU and NAV per unit have grown by much slower compound annual rates of 1.9 per cent and 3.2 per cent, respectively, since its IPO in 2013. Before the merger was unveiled, MCT was trading at an annualised H1 FY2022 DPU yield of 4.4 per cent and a 16.3 per cent premium to its NAV as at Sep 30 2021. (Mapletree' s Reits have March year-ends). MNACT was trading at an annualised H1 FY2022 DPU yield of 6.2 per cent and a 12.3 per cent discount to NAV as at Sep 30 2021. While the merger with MNACT will certainly enlarge and diversify MCT' s portfolio, it may not lead to a superior market valuation for the combined entity. For one thing, the largest asset in MPACT' s portfolio will be Festival Walk in Hong Kong - which includes a shopping mall that suffered rental reversions of negative 30 per cent in the first half of FY2022. Another concern is that Festival Walk' s leasehold title will expire in 25 years - on June 30, 2047. Comprising a mall and offices, Festival Walk is valued at some S$4.45 billion and will account for more than one-quarter of MPACT' s portfolio. The largest asset MCT currently owns is VivoCity, a thriving mall that is highly visible to Singapore-based investors. The property - which has a 99-year leasehold title starting on Oct 1, 1997 - is valued at nearly S$3.15 billion and accounts for more than one-third of MCT' s portfolio. MCT achieved a positive 2.3 per cent portfolio rental reversion in H1 FY2022. Its office and business park assets saw a 1.5 per cent reversion while its retail properties benefited from a 3.5 per cent reversion. Vote against merger On balance, MCT would probably be better off not merging with MNACT. While it would be smaller, it would arguably wield a superior market valuation - better enabling it to raise funds and make acquisitions on terms that would be immediately accretive to its DPU and NAV per share. More to the point, its unitholders would be spared the market de-rating that seems to be unfolding. Of course, if unitholders of MCT do not pass the resolutions to implement the proposed merger, MNACT is likely to be hit by a nasty sell-off. During the 1-month period leading up to the announcement of the merger, MNACT rallied 11 per cent. By selling in the market, unitholders of MNACT would be protecting themselves from further de-rating of MCT in anticipation of the merger going through as well as the risk of MNACT becoming untethered from MCT if the merger is blocked. Sponsors' priorities This brings me to the question of why the merger is being proposed at all. Two months ago, this column asserted that Reit mergers in the local market have been less about the pursuit of size than the priorities of their sponsors. The proposed merger of MCT and MNACT starts to make more sense when viewed from that angle. MPACT is likely to be a far more effective and viable asset securitisation platform for Asian commercial property than MNACT, and thus more useful to Mapletree Investments. MCT and MNACT are not the only Mapletree Reits currently in the spotlight. Mapletree Logistics Trust (MLT) is due to hold an extraordinary general meeting this week to seek approval for the acquisition of 16 properties from its sponsor for more than S$1 billion. On a pro forma basis, the acquisition would lift MLT' s DPU by 1.1 per cent. However, excluding the " income support" provided to some of the properties that are still undergoing stabilisation, the pro forma impact on MLT' s DPU would actually be marginally dilutive. Coming just as MCT and MNACT are trading lower on their merger proposal, this could add to the unfortunate perception that Mapletree Investments' priorities are not aligned with the interests of public investors. |
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fatpig
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06-Jan-2022 13:31
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The borrowing cost for MNACT is expecting to get worse this year. Merging MCT and MNACT seem the best solution for Temasek.
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PhillipTan
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06-Jan-2022 13:06
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Moody' s reviews MCT for downgrade, MNACT for upgradeMoody' s Investors Service has placed the Baa1 issuer rating of Mapletree Commercial Trust (MCT) on review for downgrade, ahead of its planned merger with Mapletree North Asia Commercial Trust (MNACT) in a S$4.2 billion deal.Concurrently, Moody' s is reviewing MNACT' s Baa3 rating for an upgrade, the credit rating agency announced on Wednesday (Jan 5) after trading hours. On Dec 31, MCT and MNACT proposed a merger that would give the combined entity a theoretical market cap of S$10.5 billion, making it the seventh-largest Reit in Asia. The transaction is expected to close by end-June. " The review for downgrade reflects the potential weakening of MCT' s credit metrics and uncertainty around its financial policy following the merger with MNACT," said Moody' s analyst Tan Junling. The deal could raise MCT' s leverage, considering MNACT' s weaker leverage profile and the incurrence of incremental debt and perpetual securities to fund the merger' s cash consideration, Moody' s noted. On a pro forma basis, it expects MCT' s adjusted net debt to increase to around 9.4 to 9.9 times Ebitda (earnings before interest, taxes, depreciation, and amortisation), from 8.2 times for the year ending March 2022. This is weaker than the 8.5 times downgrade threshold for MCT' s Baa1 rating. Conversely, MNACT' s review for upgrade reflects expectations that the trust could benefit from the deal. " However, the final impact on MNACT' s rating will depend on our assessment of the likelihood of extraordinary support that MCT will provide to MNACT in case of distress," Tan added. If the merger goes ahead as planned, Moody' s review of MCT will focus on the business profile of the combined trust, the funding structure for the S$417.3 million cash consideration and the trust' s financial policy, including its liquidity profile. MCT' s rating could be downgraded by up to 1 notch, if Moody' s assesses it to have a more aggressive long-term financial policy post-merger. But the agency will also take into account its increased scale and geographic diversification. The review of MNACT will focus on the ability and willingness of MCT to provide support to MNACT, its business strategy, capital structure and transparency around operational and financial performance. An upgrade will further rest on MNACT' s stand-alone credit profile remaining intact. Moody' s is also reviewing its (P)Baa1 senior unsecured ratings on the medium-term note programs of MCT and its unit Mapletree Commercial Trust Treasury Company (MCTTC), as well as the Baa1 ratings on senior unsecured notes drawn down from the program under MCTTC. MNACT-related ratings under review include the provisional (P)Baa3 ratings on the senior unsecured euro medium-term note (EMTN) programme of MNACT the guaranteed senior unsecured EMTN programmes of 2 relevant entities, as well as the Baa3 guaranteed senior unsecured rating on the notes under Mapletree North Asia Commercial Treasury Company (HKSAR)' s EMTN programme. The outlook on all MCT' s ratings has been changed from " stable" to " rating under review" , while that of MNACT has been changed from " negative" to " rating under review" . Units of MCT closed at S$1.84 on Wednesday, up 1.1 per cent, while units of MNACT closed flat at S$1.09. |
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Lobster
Elite |
05-Jan-2022 12:34
Yells: "Even Adam Khoo believes in the Black Market!" |
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Now before you get too overly excited or rampaging mad, which ever the case, do note that it will be some time before the proposed merger scheme is finalised and realised..something like July this year. Which means meanwhile you will be enjoying two rounds of fat dividends. (for MCT estimated annualised $0.09 , and MNACT estimated annualised $0.065)... Right now there' s a lot herd behavior and gong kias following blindly the blind, and thanks to these people, you will be getting very attractive yield at current price. Stupid to even think the insiders, including the mighty godfather will let this stock hang to dry. Enjoy your durian desserts first while waiting for the real durians to drop .... |
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Lobster
Elite |
05-Jan-2022 12:09
Yells: "Even Adam Khoo believes in the Black Market!" |
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Now just to expand on why the coffee shop,uncles think that while this is a good deal for MNACT, it is not a bad deal for MCT either... = in the scheme proposal, offerer has valued MNACT at $1.19 and MCT at $2.00 (rounded up) = considering MNACT current nav is about $1.25, it' s is therefore valuing MNACT 6% less of its nav and considering that the post merger nav of MCT (aka MPACT later) would be around $1.88 (8.9% nav accretive of current value of $1.725... they said one wor), means it is valuing MCT at 6% more of its forward nav = now, why should it be good for MNACT? because before scheme announcement, price was trading at a stagnant pathetic 0.8x (or 20% discount)... now it is trading higher. = now if you look MNACT, preannouncement, it was trading at average 1.2x (or 20% premium), but that is based on current premerger nav. Post merger nav, as we pointed out would be 8.9% higher, so after post merger, the price will be much much higher. = all these numbers co-incidental? I think they are trying to be fair anfpd just... but we can never satisfy everyone.
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Lobster
Elite |
05-Jan-2022 11:39
Yells: "Even Adam Khoo believes in the Black Market!" |
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This piece of coffee shop,story is so good that I though I repost it here....
The coffee shops uncles already explained, until their saliva drop why this is the way to go for MCT to expand and to grow...so let me hold your hands and answer slowly, the more important points to your concern.... |
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cloudy.mountain
Member |
05-Jan-2022 02:26
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best description of the transaction i have read so far. value destruction!
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Lobster
Elite |
05-Jan-2022 01:21
Yells: "Even Adam Khoo believes in the Black Market!" |
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A lot of noises have been coming out claiming that MNACT got the short end of the stick, others saying MCT got a very bad deal.... but none is able to substantiate why. Actually the perception of whether a deal is good or bad is how the black market wants to make it to be.... If you think properly, while MNACT seems to be getting a good deal, MCT is getting not a bad deal either.....because I am no good in articulating in analysis technical terms, let me try to explain in coffee shop lingo... For MNACT, the Asia Pacific is its oyster... If it wants to expand its portfolio, it can go on to source and acquire good properties in this vast region, but it does not have a presence in the less volatile environment and stable market here. By merging with MCT, in one shot, it is able to include into its assets portfolio, not only good local properties , but the crown jewel of retail malls, the Vivo City, and the mother of Business Parks, the MBC. Given the political environment in Hong Kong it will in one shot, reduce the volatility in income. Because it has been borrowing and borrowing to buy, in one shot it is able to bring its gearing ratio down, in the merged entity, reducing its net debt to assets ratio In one shot it becomes part of one largest REITs in the Asia Pacific, with expanded market cap, expanded assets portfolios, giving it greater leverage in any negotiations. In one shot it is able to get out of hang of constantly trading at a discount to nav when it will be pegged to a bluer chip REIT which has been trading at a premium to nav. Because the offer price is pegged to close to MNACT&rsquo s nav of $1.25, it means the stock is valued higher than its average traded price of the past year. For MCT, it is largely localised, for it to expand it needs to acquire a good class property at a good price that is dpu and nav accretive. The problem is most of the tokkong properties are already in the hands of the other mega REITs. For the few independent properties, if MCT were to acquire them, they would have to pay hefty premium prices for it, which would not be helpful to its dpu growth. So how to expand? So, by merging with MNACT, in one shot, it has access to a vast overseas market to source and acquire new properties. In one shot, it increases its geographical spread. In one shot, it will,have a diversity of assets classes..... it is able to add to its asset portfolio, another 13 different type of properties.... now imagine if you were to acquire these 13 properties, you would have to go through don&rsquo t know how many rounds of rights issues. In one shot, it is able to grow its dpus... because MNACT has been paying very attractive absolute dpus, MCT claims it would increase it by 7.9%... without the merger, you would have to look for a super tokkong property to grow your dpu by this much. As with MNACT, in one shot, the merger with propel MCT to among the top REITs in the Asia Pacific region. With greater economy of scale, in one shot, it is able to reduce its business costs, and management fees. It will also have more flexibility to acquire a larger portfolio of assets. In one shot, it is able to increase its nav, by 8.9%.... considering that it&rsquo s current nav is about $1.725, means its post merger nav would be about $1.88.... and considering that blue chip REITS normally traded at 1.5x, the post merger MCT price has the potential to go up to $2.82... okay, if you find this hard to believe then we look at MCT pre pandemic price which hover around $2.30 to $2.40, trading at around 1.3x to 1.4x! Means what? Means that chow chow, MCT, even at 1.3x may be able to give you at least $2.45. Now I don&rsquo t want koyok sell too much, like as if I am begging you to buy (good wine doesn&rsquo t need testing). I just want you to look at today&rsquo s price. At $1.81, it is already well below the theoretical post merger NAV of $1.88. So you can decide how much you will or can earn. Don&rsquo t forget, from 2016, when it started its meteoric rise to over $2.00, many funds, institutions, foreign investors, SSHs, had been accumulating at between $2.20 to $2.40 prices, and in 2017, it even had a rights issue at $2.24 per unit. You think these people will dump their shares now? So how much lower you want it to be? Result is coming, attractive dpus are going to be declared, it would be difficult for the prices to go to the cleaners, which some are hoping for because fundamentally there&rsquo s is nothing wrong with the stock. Both will have in it one of the best sponsors in the land and behind it the financial might in TH. If this doesn&rsquo t convince you, I have to caution you, that black market has a very strong interest in this. Vested in both MNACT and MCT. Pdyohwadfmb |
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chengwh1
Elite |
04-Jan-2022 23:10
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" For MAGIC, pro forma estimates based on 1HFY22 showed the deal was 17-18% DPU dilutive. " Interesting, the above statement by CIMB matched exactly my scenario earlier of 42700 units, ie the total dividend collected for MNACT in 1HFY22 was $1462.90 dropping to a proforma analysis amount of $1206.90 for MPACT, hence, a drop of 17.5%. As for buying which one is a better buy today,... I will look at it from the angle of the annualised dpu payout based on 1HFY22. For 1HFY22, the dpu payout for :- 1) MNACT = $0.03426, hence, annualised = $0.06852. 2) MCT = $0.04740, hence, annualised = $0.09480. To achieve a minimum of 6% yield for each counter above,... 1) MNACT needs to drop to $1.142. 2) MCT needs to drop to $1.580. At current prices, MNACT is more worthy to enter if yield is important to you. Furthermore, if this merger does NOT go thru, it would be better to hold MNACT if yield is important to you,... and if quality of the REIT Mgr is critical to you. MCT is going to adopt a similar Performance Fee remuneration as MNACT' s if it gets approved.
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fatpig
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04-Jan-2022 21:18
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27 Dec 2021 Institutional investors desposed MNACT. Short sell started 24 Dec 2021 26 Nov 2021 Institutional investors started desposed MCT. Shortsell started 23 Dec 2021 28 Dec 2021 MNACT request for trading halt 3 days before Merger announcement. |
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coco66
Member |
04-Jan-2022 20:56
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Saw this being shared about funds shifting to CICT: " My hypothesis: funds are switching to CICT (capitaland) As CICT has Similar strength, with 2 avenues for growth: (1) retail (from tourism) + (2) Office While trading at a yield of 5.5 to 6 % (Take note this Yield is suppressed and can only go up after covid). In contrast, MCT was trading at a permium with little room for growth and would need to drop towards $1.8 to have a similar yield as CICT." |
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PhillipTan
Supreme |
04-Jan-2022 19:18
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What I meant was I don' t think 2.003 for MCT and 1.1947 for MNAC is possible lol I got a feeling that it will continue to drop further Maybe $1.77 for MCT and $1.07 for MNAC? Hmmm....
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bystander1965
Supreme |
04-Jan-2022 18:08
Yells: "What I say is just my assessment. DYODD" |
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Oh I quoted 1.08 because it touched that today. Just an example although the lower it goes the more attractive it looks.
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