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selling china offices is the best. but under current conditions will not get a good price. property can only sell when there are demand at resonable price.
this anson office sale price is about right, fair to seller and buyer. for buyer good protection of value and resonable good rental return.
for seller, it is good as it will improve the financial ratios . this is good for renewal of loan at better rates.
the lost of rental should be about the same as savings in loan interest considering that it will gain favour to lender.
a very heavily shorted counter on speculations of possible manulife type of problem which is not likely now.
expecting short covering soon.
16698513 shares shorted or 1.7% of outstanding shares.
this anson office sale price is about right, fair to seller and buyer. for buyer good protection of value and resonable good rental return.
for seller, it is good as it will improve the financial ratios . this is good for renewal of loan at better rates.
the lost of rental should be about the same as savings in loan interest considering that it will gain favour to lender.
a very heavily shorted counter on speculations of possible manulife type of problem which is not likely now.
expecting short covering soon.
16698513 shares shorted or 1.7% of outstanding shares.
luckyguy3 ( Date: 31-May-2024 20:55) Posted:
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1) Many of u already complain about the merger between North Asia (China+HK) and Commercial(Singapore)
U all complan that the merger = using Singapore assets to " rescue" the China+HK assets.
2) So now they are doing it again by selling aka sacrificing Singapore Anson asset with 100% occupancy rate in order to
buy time for China+HK situation to recover asap. What if China+HK dun recover fast? The valuation will keep dropping
then sell another Singapore asset to rescue china+HK assets again?
3) They will NOT sell china+HK assets because if they sell it will mean that they made a mistake to merge North Asia
with Commercial trust. If they sell means " demerger" which will mean a slap in their face. That why u see them
selling aka sacrificing Singapore (Anson) assets in order to rescue China+HK asset
4) They are now sacrificing good asset(Anson) to rescue bad assets(China+HK) and hope that China and HK recovers soon
If not I foresee them selling another good asset (singapore) again.
5) Why not chop off the bad assets and rebuild from a good base (singapore assets)? But they wun because that will mean loss of
face for them.
U all complan that the merger = using Singapore assets to " rescue" the China+HK assets.
2) So now they are doing it again by selling aka sacrificing Singapore Anson asset with 100% occupancy rate in order to
buy time for China+HK situation to recover asap. What if China+HK dun recover fast? The valuation will keep dropping
then sell another Singapore asset to rescue china+HK assets again?
3) They will NOT sell china+HK assets because if they sell it will mean that they made a mistake to merge North Asia
with Commercial trust. If they sell means " demerger" which will mean a slap in their face. That why u see them
selling aka sacrificing Singapore (Anson) assets in order to rescue China+HK asset
4) They are now sacrificing good asset(Anson) to rescue bad assets(China+HK) and hope that China and HK recovers soon
If not I foresee them selling another good asset (singapore) again.
5) Why not chop off the bad assets and rebuild from a good base (singapore assets)? But they wun because that will mean loss of
face for them.
pasttime ( Date: 31-May-2024 20:28) Posted:
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good job on the anson property.
now please don' t go aggresive on purchase until after fed start lowering interest rate.
business park with multiple buildings has potential to have a hybrid data center. used some of the empty space or car parks convert to provide data center as a local to compliment the far away off site.
being local will have better latency and is protected by being on different building. since on site no need to pay signtel network cost. that is advantage of a hybrid. local + off site data center.
now please don' t go aggresive on purchase until after fed start lowering interest rate.
business park with multiple buildings has potential to have a hybrid data center. used some of the empty space or car parks convert to provide data center as a local to compliment the far away off site.
being local will have better latency and is protected by being on different building. since on site no need to pay signtel network cost. that is advantage of a hybrid. local + off site data center.
MPACT to divest office building Mapletree Anson for S$775 million
The amount represents a gain of S$10 million &ndash or 1.3 per cent &ndash over the property&rsquo s book value and valuation
MAPLETREE Pan Asia Commercial Trust (MPACT) is divesting Mapletree Anson, a 19-storey office building in Tanjong Pagar, for S$775 million.
The Reit&rsquo s trustee, DBS Trustee, has entered into a put and call option agreement with an unrelated third-party buyer for the proposed divestment of the property at 60 Anson Road. Completed in July 2009, Mapletree Anson offers over 320,000 square feet of lettable area.
As at Mar 31, 2024, the property was valued at S$765 million by independent valuer CBRE based on the income capitalisation method and discounted cash flow analysis method.
The divestment consideration of S$775 million represents a gain of S$10 million &ndash or 1.3 per cent &ndash over Mapletree Anson&rsquo s book value and valuation. The consideration is also 14 per cent higher than the original purchase price of S$680 million that MPACT paid for the property back in 2013.
This divestment consideration results in an estimated gain on disposal of about S$3.8 million. The price was negotiated on a willing-buyer and willing-seller basis after taking into account the property&rsquo s independent valuation.
The manager of MPACT said the divestment of Mapletree Anson &ndash which is a non-core asset &ndash is part of the Reit&rsquo s ongoing strategy to &ldquo rationalise and optimise the portfolio&rdquo .
&ldquo The manager believes that the divestment will benefit unitholders as it is a proactive and carefully calculated step to enhance MPACT&rsquo s capital structure and financial resilience, taking into account prevailing market conditions,&rdquo it said.
The manager intends to use net proceeds from the divestment towards debt reduction. This is expected to strengthen MPACT&rsquo s capital structure and financial resilience by lowering its aggregate leverage ratio from 40.5 per cent (as at Mar 31, 2024) to 37.6 per cent on a pro forma basis.
It also expects this to enhance the Reit&rsquo s adjusted interest coverage ratio from 2.9 times for FY2023 / 2024 to 3.3 times on a pro-forma basis, as well as expand its debt headroom from about S$3.2 billion (as at Mar 31, 2024) to about S$3.9 billion on a pro-forma basis.
Lastly, the divestment is expected to deliver about 1.5 per cent of accretion to distribution per unit in MPACT for FY2023 / 2024 on a pro-forma basis.
&ldquo The strengthened capital structure would position favourably MPACT to safeguard and potentially enhance unitholders&rsquo value,&rdquo said the manager. &ldquo It also provides MPACT with greater financial flexibility for future manoeuvres.&rdquo
For the financial year ended Mar 31, 2024, Mapletree Anson yielded gross revenue of S$37.2 million and net property income (NPI) of S$29.3 million. It is expected to have a NPI yield of 3.8 per cent for the financial year, based on the divestment consideration.
The property has a committed occupancy rate of 100 per cent and a weighted average lease expiry by gross rental income of 3.8 years. It currently has 23 leases and 17 tenants.
Upon completion of the divestment, MPACT&rsquo s portfolio will comprise 17 commercial properties located across five markets in Asia.
Disposal of asset resulted in DPU accretive? We can only derived that the cost of debt plus cost of running the building outweight the NPI. Hopefully this is not the case for other assets. Anyway, it is a good move to realise almost 20x plus [762m vs 32m] NPI by disposing off the asset. Classic case of transferring asset to cash and consequently, the overall debts have been reduced and now at least the gearing is a more respectable 37.6%. The calculation on pro forma all bluff, we will see the real DPU amount soon in the upcoming results in late July or early August.
Mapletree Pan Asia Commercial Trust (MPACT) is divesting Mapletree Anson, a 19-storey office building in Tanjong Pagar, for $775 million. As at March 31, the property was valued at $765 million by independent valuer CBRE based on the income capitalisation method and discounted cash flow analysis method. The divestment consideration of $775 million represents a gain of $10 million ? or 1.3 per cent ? over Mapletree Anson?s book value and valuation. It is also 14 per cent higher than the original purchase price of $680 million that MPACT paid for the property back in 2013. The divestment is part of the Reit?s ongoing strategy to ?rationalise and optimise the portfolio? and will benefit unitholders by enhancing MPACT?s capital structure and financial resilience. The manager intends to use net proceeds from the divestment towards debt reduction, which is expected to strengthen MPACT?s capital structure and financial resilience by lowering its aggregate leverage ratio from 40.5 per cent (as at March 31) to 37.6 per cent on a pro forma basis.
Buy low sell high. Is the current price low or high?
Hope short sellers push to $1 to make everyone of us become long sellers
Sponsor should do some damage control from the short sellers. They harvesting cash here. Either push price up or buy out the china property. Festival should ok as recovering well
All the good news and good earnings ! Price $1.27 still lock lock kok kok ???
MPACT posts 1.8% higher Q4 DPU of S$0.0229
Gross revenue up 16% at S$958.1 million, while NPI rises 15.2% to S$727.9 million
MAPLETREE Pan Asia Commercial Trust : N2IU +1.6%&rsquo s (MPACT) distribution per unit (DPU) for the fourth quarter ended March grew 1.8 per cent year on year to S$0.0229 from S$0.0225 previously.
Unitholders can expect to receive the distribution payout on Jun 6 after book closure on May 3.
The real estate investment trust&rsquo s (Reit) gross revenue grew 2.6 per cent to S$239.2 million, while net property income (NPI) for the quarter rose 3.2 per cent to S$183.1 million with an NPI margin of 76.6 per cent.
On Wednesday (Apr 24), MPACT&rsquo s manager attributed the improved financial metrics to a strong Singapore performance and stable contributions from the Reit&rsquo s asset in Hong Kong, Festival Walk.
This led to overall NPI growth more than covering net finance costs for the quarter, which grew 10.8 per cent to S$56.4 million due to higher interest rates on Singapore and Hong Kong dollar-denominated borrowings.
The figures exclude contributions from MPACT&rsquo s The Pinnacle Gangnam asset in Seoul, for which profit after tax will be shared based on the trust&rsquo s 50 per cent effective interest in the property.
MPACT&rsquo s DPU for the full year stood at S$0.0891, down 7.3 per cent from S$0.0961 a year prior, as the manager said the full-year distribution was moderated by higher interest rates.
Gross revenue for the full year grew 16 per cent to S$958.1 million, while NPI rose 15.2 per cent to S$727.9 million.
The amount available for distribution to unitholders grew 5.2 per cent on the year to S$468.6 million.
As at end-March 2024, MPACT&rsquo s portfolio occupancy stood at 96.1 per cent &ndash down from 96.7 per cent as at end-2023, but higher than the 95.4 per cent portfolio occupancy in the same period a year ago.
The manager said this year-on-year improvement largely stemmed from the success in backfilling the Reit&rsquo s mTower asset.
Sharon Lim, chief executive of the manager, also noted that the Reit&rsquo s flagship asset VivoCity &ldquo showcased all-rounded excellence&rdquo as it achieved a new record in full-year tenant sales to bring MPACT&rsquo s overall portfolio to an &ldquo outstanding 14 per cent rental uplift&rdquo .
Overall portfolio tenant retention rate was 72.5 per cent, with a weighted average lease expiry of 2.4 years.
MPACT open to share buyback
With a gearing of 40.5 per cent and an average term to maturity of debt of three years, MPACT&rsquo s manager added that the Reit&rsquo s debt maturity profile remained &ldquo well-staggered&rdquo with no single financing year facing more than 21 per cent of debt refinancing.
The Reit manager also noted &ldquo ample financial liquidity&rdquo for MPACT to meet its working capital needs and financial obligations, given an estimated S$1.5 billion of cash and undrawn committed facilities available.
&ldquo Our Singapore assets have consistently delivered. With this market&rsquo s inherent stability, it will remain a significant component of our assets under management and NPI, reinforcing MPACT&rsquo s foundational strength,&rdquo said Lim.
Speaking at MPACT&rsquo s financial results briefing held on Wednesday morning, Lim added that the manager was &ldquo not that concerned&rdquo about the company&rsquo s gearing level as it believed that the valuation of properties was &ldquo not stretched&rdquo .
She noted how the valuation of Vivocity had grown over time.
Based on its latest results, VivoCity&rsquo s valuation as of Mar 31, 2024, stood at S$3.4 billion, up from S$3.2 billion the year before. Its per square feet lettable area stands at S$3,145 while its running yield is 5 per cent.
&ldquo Is there any room for valuation increases? I would tell you confidently, there is,&rdquo said Lim.
On whether MPACT would be open to share buybacks to show how undervalued its shares are, Lim said that if it had the capacity and the cash, it would consider buybacks for the short term.
In response to an analyst&rsquo s question on whether share buybacks may be included in the resolution for MPACT&rsquo s upcoming annual general meeting, Lim said: &ldquo Why not? It&rsquo s good to have that. No issue.&rdquo
However, she stressed that the long term strategy for the company is to &ldquo look at real estate and build the bottom line&rdquo .
MPACT to &ldquo refine&rdquo the portfolio mix
Janica Tan, the manager&rsquo s chief financial officer, said that amid headwinds in the broader market and a high interest rate environment, the manager&rsquo s strategic objective is to position MPACT actively for future opportunities.
In doing so, the manager will first strengthen its capital structure and refine its portfolio mix. To this end, it is actively pursuing opportunities to recalibrate its capital structure.
Secondly, it will continue proactive asset management efforts. She noted that MPACT&rsquo s China assets had outperformed the market, and the company is focused on maintaining focus on healthy occupancy and ensuring stable rental income.
Lastly, Singapore, which comprises more than half of MPACT&rsquo s assets under management, will continue to be a key component of MPACT&rsquo s portfolio.
Surprise slight increase in DPU qoq. Total cost of debt at 3.35% is actually low given current climate. However, with 40.5% leverage ratio the market think it has no room for growth and the unit price reflected that. Having said that, 2.9x ICR is quite good and hopefully the management work toward bringing down the leverage ratio to show that there is room for acquisition and growth.
HVRRVH ( Date: 23-Apr-2024 17:26) Posted:
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LOL.....2.29c DPU.
The problem is not due to local assets.......China/HK.......
Results tomorrow before market open. DPU was 2.25 cents for the last corresponding quarter and it is likely that we will see a drop. May go back to visit 1.19 especially after XD. I will be happy if proven wrong.
That could be an idea - perhaps build residential on top. MCT would need to apply for land redesignation permit. There are normally two issues. First, the nearby area must have the infrastructure to accomodate the change in purpose. In this case, happily the HK mall has some great transportation links so that should not be the problem. Second, MCT would need to pay a land premium. Challenge is to find an agreeable price with govt - due to recent price falls in HK, govt thinks premium should be higher than what developers think it is and so some recent govt land sales have fallen through.
cmengchan ( Date: 22-Apr-2024 17:46) Posted:
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I should have said in the short or medium term. Years down the line they can u turn, when they can say things have changed, market dynamics have shifted etc.
Alignment ( Date: 22-Apr-2024 17:42) Posted:
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If the HK mall asset is bad, its also possible for sponser Mapletree to buy it back and redevelop to something else, residential or mixed use if there is demand. Its always better to have a strong sponser that is at least shareholder friendly.
Wishful thinking. They will never do a 180 degree reverse in strategy like that, irrespective of whether it is right or wrong. The loss of face would be too great.