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Yeah. Trust and REIT is different. A trust does not need to distribute 90% of their earnings.
So how will EC be able to refi their debt?
So how will EC be able to refi their debt?
Rollypop ( Date: 12-Jan-2022 10:25) Posted:
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Too late to use DPU to par down debt. Left with 3-6 months of DPU, not meaningful to the entire debt.
Furthermore, distributing less than 90% will attract corporate tax under the REIT regulation.
Not optimistic at all.
Furthermore, distributing less than 90% will attract corporate tax under the REIT regulation.
Not optimistic at all.
Can mgr follow APTT mgr to cut dpu to help reduce debt ?
Will the reit mgr borrow from onshore lender to pay offshore loan ? Will onshore lender lend ?
Think offshore lender aren't too positive to lend Chinese companies, after numerous offshore bond default by china property developers 🤔
https://www.google.com/amp/s/sg.finance.yahoo.com/amphtml/news/chinese-reit-faces-challenges-high-050936300.html
"...EC World REIT?s short term debt ballooned. This is because three-year offshore loans arranged in June 2019 of up to $424 million are approaching maturity along with onshore loans of $232 million. As at Sept 30, short-term debt had risen to $703 million. If EC-World REIT were to be an onshore Chinese developer, it would have crossed at least one of the three red lines, of cash-to-short-term debt ratio of more than 1x.
A default for the offsore loan occurs if the manager ceases to be the manager of EC-World REIT, and Forchn Holdings Group ceases to hold at least 25% of EC-World REIT?s units."
"...EC World REIT?s short term debt ballooned. This is because three-year offshore loans arranged in June 2019 of up to $424 million are approaching maturity along with onshore loans of $232 million. As at Sept 30, short-term debt had risen to $703 million. If EC-World REIT were to be an onshore Chinese developer, it would have crossed at least one of the three red lines, of cash-to-short-term debt ratio of more than 1x.
A default for the offsore loan occurs if the manager ceases to be the manager of EC-World REIT, and Forchn Holdings Group ceases to hold at least 25% of EC-World REIT?s units."
This one quite sad... first buyer walked out of the deal, then ppty kenna taken (hopefully with adequate compensation) and soon third problem on the way, the upcoming debt not settled yet.
Wake up to what in particular?
laksaman57 ( Date: 11-Jan-2022 09:34) Posted:
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It's time to wake up.
EC World Reit receives notice of compulsory expropriation of Hangzhou port property
EC World Reit EC World Reit: BWCU -1.32% has received a notice of compulsory expropriation of Fu Zhuo Industrial, a port property located in Hangzhou, China, its manager said on Monday (Jan 10).
The People' s Government of Linping District, Hangzhou City had issued the real estate investment trust (Reit) with the notice on Jan 6 for the development of the Grand Canal National Cultural Park in Hangzhou.
Fu Zhuo Industrial is located on the east bank of the Beijing-Hangzhou Grand Canal, in the west of Chongxian New City in Hangzhou.
The manager said the Reit is entitled to receive compensation based on the expropriation valuation of Fu Zhuo Industrial in accordance with the notice. This includes the property' s land use rights, buildings and equipment.
Fu Zhuo Industrial - a port property comprising berths and office buildings - has a total land area of 24,403 square metres (sq m) and a total net lettable area of 7,128 sq m, with a remaining lease tenure of 34 years.
It is owned by Hangzhou Fu Zhuo Industrial, which is in turn wholly-owned by EC World Reit, and has a valuation of 117 million yuan (S$24.9 million) as at Dec 31, 2020, representing 1.5 per cent of the Reit' s whole portfolio.
The target date of vacating the property is Mar 31.
The manager said it has engaged the relevant authorities to discuss the details of the compulsory expropriation, including the details of compensation, and will provide further updates once available.
Funny that eviction is few months away and compensation from chinese government is still in discussion.
More importantly, any idea how is their refinancing due in July 2022? Its a big quantum.
More importantly, any idea how is their refinancing due in July 2022? Its a big quantum.
Looks like small part of EC REIT. Likely small imapct to revenue. Hopefully will get higher compensation compared to the cost price.
Mentioned in Edge Singapore.
Based on the latest valuation conducted by Savills Real Estate Valuation (Guangzhou) Ltd on Dec 31, 2020, Fu Zhuo Industrial was valued at RMB117 million ($24.8 million), representing some 1.45% of EC World REIT?s portfolio
This Fu Zhou property was acquired quite recently in 2019?
What is the impact on the Revenue/DPU?
What is the impact on the Revenue/DPU?
WoW! What is this about?
cmengchan ( Date: 10-Jan-2022 08:56) Posted:
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EC World REIT's Hangzhou property receives notice of compulsory expropriation
The REIT is entitled to receive compensation based on the expropriation valuation of Fu Zhuo Industrial (including the land use right, buildings and equipment).
It is supposed to vacate the property by March 31.
Details of the compulsory expropriation, including compensation details have yet to be discussed.
The REIT is entitled to receive compensation based on the expropriation valuation of Fu Zhuo Industrial (including the land use right, buildings and equipment).
It is supposed to vacate the property by March 31.
Details of the compulsory expropriation, including compensation details have yet to be discussed.
Chinese S-REIT faces challenges of high short term debt levels, master lease structure, savvy investors
S-REITs with Chinese assets and mainland sponsors tend to have a higher cost of capital compared to S-REITs with similar assets and local sponsors.
Take EC World REIT, intimating that a potential transaction was on the way back in May 2021. Analysts who covered the stock were positive on this transaction all the way to Nov. Some savvy investors believed that the point of announcing a potential transaction was to boost the REIT&rsquo s unit price, which the announcement did.
Unfortunately for analysts - which had more faith in a transaction than savvy investors - EC World REIT&rsquo s manager announced on Dec 28, that &ldquo The Purchasers have informed the Manager that, in view of the current market conditions and the fluctuations in exchange rate between Renminbi and Singapore dollars/US dollars, they have decided not to proceed with the Potential Transaction as the bases on which the Purchasers had approached the Manager in relation to the Potential Transaction have changed significantly.&rdquo
Since May, the renmimbi has strenghtened which would mean that Chinese investors would have paid less. While no price was mentioned, analysts were hopeful that the agreed price would be near net asset value which as at Sept 30 stood at 95 cents for EC World REIT.
During the course of the year, EC World REIT&rsquo s short term debt ballooned. This is because three-year offshore loans arranged in June 2019 of up to $424 million are approaching maturity along with onshore loans of $232 million. As at Sept 30, short-term debt had risen to $703 million. If EC-World REIT were to be an onshore Chinese developer, it would have crossed at least one of the three red lines, of cash-to-short-term debt ratio of more than 1x.
A default for the offsore loan occurs if the manager ceases to be the manager of EC-World REIT, and Forchn Holdings Group ceases to hold at least 25% of EC-World REIT&rsquo s units.
Based on information gleaned from EC World REIT&rsquo s FY2020 annual report, some 67% of gross rental income is from Forchn Holdings and companies affiliated with Forchn Holdings, the REIT&rsquo s sponsor. Hence, although the REIT owns warehouses and port logistics assets, investors have probably valued the REIT at a discount.
Distribution per unit in 3QFY2021 was 1.662 cents, which if annualised provides a yield of 8.7%. For S-REITs with Chinese assets, DPU yield is probably a more realistic valuation because investors receive an actual distribution. There maybe less clarity on NAV, in particular because of the REIT&rsquo s master lease structure.
Any difference from pump and dump sydnicate? 
https://ecwreit.listedcompany.com/newsroom/20211228_225459_BWCU_1SQY0EDATL5P5Y6Q.1.pdf
The Purchasers have informed the Manager that, in view of the current market conditions and the fluctuations in exchange rate between Renminbi and Singapore dollars/US dollars, they have decided not to proceed with the Potential Transaction as the bases on which the Purchasers had approached the Manager in relation to the Potential Transaction have changed significantly.
The Purchasers have informed the Manager that, in view of the current market conditions and the fluctuations in exchange rate between Renminbi and Singapore dollars/US dollars, they have decided not to proceed with the Potential Transaction as the bases on which the Purchasers had approached the Manager in relation to the Potential Transaction have changed significantly.
S-Reits with healthcare and China assets outshine in November
Global Reit markets dipped over the last 3 sessions of November, as investors grappled with the unknowns of the Covid Omicron variant.Similarly, the 3 sessions saw the iEdge S-Reit Index shave off 3.8 per cent in total returns, ending November with a 2.4 per cent decline.
The top 5 performers over the month of November were firstly, S-Reits with healthcare assets - First Reit First Reit (12.2 per cent in total returns) and ParkwayLife Reit (6.6 per cent) - and secondly, S-Reits with assets located in China - Sasseur Reit (4.7 per cent), EC World Reit (3.1 per cent) and (2.9 per cent).
As uncertainty over the Omicron variant eased gradually, the iEdge S-Reit Index regained 1.2 per cent over the first 7 sessions of December, bringing its total returns since the start of November to a decline of 1.2 per cent.
S-Reits with healthcare and China-based assets continued to be the top performers over the extended period from the start of November to Dec 9, 2021.
These S-Reits were: First Reit (18.0 per cent in total returns), BHG Retail Reit (15.4 per cent), ParkwayLife Reit (8.9 per cent), Sasseur Reit (4.7 per cent) and Mapletree North Asia Commercial Trust (4.5 per cent).
EC World Reit announced higher DPU of 1.662 Singapore cents for Q32021, an increase of 19.7 per cent year on year.
Four out of EC World Reit' s portfolio of 8 properties cater to the e-commerce logistics sector. The occupancy rate of its Wuhan Meiluote property increased from 79.4 per cent to 84.5 per cent, as it secured a 3-month lease starting Oct 1, 2021, in anticipation of the annual Singles Day sales.
As at Oct 31, 2021, EC World Reit' s portfolio occupancy is 99.2 per cent.
Decent set of results. This one looks like a steady performer.