ManulifeReit USD    Last:0.054    -0.001

Manulife US REIT IPO

I still think this counter ok ... Of the US$197.2 raised, US$191.1 million goes into the purchase of offices for further investment while the rest US$6.1 for non-investment purpose only. This is better than more counters issue rights to pay off bank borrowings.

puayheng      ( Date: 16-May-2018 15:21) Posted: I stand corrected on the preferential placement. Am still disappointed by the dilution in dpu. How is that yield accretive? chengwh1      ( Date: 16-May-2018 14:14) Posted: Bro PH,... it' s not a private placement, it' s a preferential offering. We have chances to paritcipate too. Even at 5.71 US Cts divvy per unit, the yield works out to be 6.11% against a unit price of US$ 0.935 today,... isn' t this good enough ? Would appreciate your opinions,..

 

I stand corrected on the preferential placement. Am still disappointed by the dilution in dpu. How is that yield accretive?

chengwh1      ( Date: 16-May-2018 14:14) Posted: Bro PH,... it' s not a private placement, it' s a preferential offering. We have chances to paritcipate too. Even at 5.71 US Cts divvy per unit, the yield works out to be 6.11% against a unit price of US$ 0.935 today,... isn' t this good enough ? Would appreciate your opinions,... puayheng      ( Date: 16-May-2018 13:58) Posted: They did a private placement at $ 0.865 per unit which is a big discount to last closing price. Based on pro-forma financial statement released this morning, post acquisition dpu will drop from 5.77c   to 5.71c. This is not a manager that looks after the interest of retail investor. They are only interested to grow asset, thereby giving their boss the sponsor a chance to divest and raise funds with no regards for the unit holder. Bye.

 

Bro PH,... it' s not a private placement, it' s a preferential offering. We have chances to paritcipate too.

Even at 5.71 US Cts divvy per unit, the yield works out to be 6.11% against a unit price of US$ 0.935 today,... isn' t this good enough ? Would appreciate your opinions,...

puayheng      ( Date: 16-May-2018 13:58) Posted: They did a private placement at $ 0.865 per unit which is a big discount to last closing price. Based on pro-forma financial statement released this morning, post acquisition dpu will drop from 5.77c   to 5.71c. This is not a manager that looks after the interest of retail investor. They are only interested to grow asset, thereby giving their boss the sponsor a chance to divest and raise funds with no regards for the unit holder. Bye.

 

Notable observations in the announcement at 8 am this morning,....

1) post-acquisition, the dpu will drop from 5.77 US Cts to 5.71 US Cts, AND

2) the yield is seen to be icaresing because the lower dpu above is divided against a lower unit price of US$0.922, said to be the TERP.

In essence,... both of the above important metrics are expected to drop. Based on their method of calculation,... the NAV will rise from 0.82 US Cts to 0.83 US Cts.

Anybody selling ?? Plans ?

 

They did a private placement at $ 0.865 per unit which is a big discount to last closing price. Based on pro-forma financial statement released this morning, post acquisition dpu will drop from 5.77c   to 5.71c. This is not a manager that looks after the interest of retail investor. They are only interested to grow asset, thereby giving their boss the sponsor a chance to divest and raise funds with no regards for the unit holder. Bye.

 

Manulife raising another round of rights

 

Did you attend the EGM to ask them questions?

chengwh1      ( Date: 06-May-2018 13:04) Posted: I' m surprised no one is clearing our doubts, shouldn' t the mgmt monitor this thread to help investors here too ? If continues remaining silent, means what we said are true and they are not able to explain further,...

 

EGM tomorrow evening,... hopefully the New Unit Price and ratio for the Rights Issue would be released then,... Not forgetting the timetable for the RI exercise too !

 

Can always email them, rem we are the boss of the reit.
Like i have some doubts in FLT, i also email to see their response.

Partially you may have a glimse of the mgt style and efficiency., like slow response, impolite boh chap attitude. etx

 

Please drop them an email with your questions.

Share with us if you got a reply. Thanks.

 

Wow if you have question, you should write to PR or ask in AGM.
If the management really spend their time in this thread rather than the biz, better quickly dump the sure.

chengwh1      ( Date: 06-May-2018 13:04) Posted: I' m surprised no one is clearing our doubts, shouldn' t the mgmt monitor this thread to help investors here too ? If continues remaining silent, means what we said are true and they are not able to explain further,...

 

I' m surprised no one is clearing our doubts, shouldn' t the mgmt monitor this thread to help investors here too ? If continues remaining silent, means what we said are true and they are not able to explain further,...

 

Circular abt The coming EGM :http://infopub.sgx.com/FileOpen/Manulife%20US%20REIT%20Unitholder%20Circular%2027%20April%202018.ashx?App=Announcement& FileID=501634

To start with, the Total Actual dpu given out in FY2017 was 5.77 US cts per unit.

On page 2 of the above circular, the following is mentioned in the footnote : The illustrative FY2017 Pro Forma DPU assumes the acquisition costs (excluding acquisition fees) are funded through combination of drawdown of loan facilities and issuance of perpetual securities.

On the dpu Bar Chart in the above, it shows the dpu  WILL GROW from 5.77 US cts to 5.85 US cts if we use the above method to finance this acquisition.

However

On pages 27 and 28, the following is mentioned in a footnote : Depending on the market conditions, the Manager may decide in the best interest of Unitholders to fund the Total Acquisition Cost (excluding Acquisition Fees paid to the Manager in Units) of US$397.0 million througha combination of drawdown of loan facilities and equity fund raising. For illustrative purposes only, assuming    his is funded by a drawdown of loan facilities totalling US$236.5 million and equity fund raising of US$160.5 million, the Distributable Income will be US$57.8 million, the number of Issued Units will be 1,222,067,644 Units, the DPU will be 5.77 US cents and the DPU Yield will be 6.27% after the Acquisitions. The above is  purely for illustrative purposes only and depending on the market conditions, the proportion of debt and equity funding may differ which may in turn affect the financial effects of the Acquisitions stated above.


Therefore, in summary, if any percentage of this acquisition is funded by equities, there will be NO dpu increment. Only if this is funded with loan drawdowns and issuance of perpetual securities would there be additional dpu for us !

 

Manulife (Canada financial service grp) monetise its asset.
http://www.financeasia.com/News/407486,manulife-seeks-to-revive-s-reit-ipo.aspx

 

There is no link with insurance linked investment. ManuLife US REIT owns few office buildings in US. The unitholders collect DPU from the rental of the office.

Goldfinger      ( Date: 02-May-2018 07:26) Posted: Very few people make money from Insurance linked investments as I understand.

 

Mostly because of humongous rights issue to fund the purchase.Jill restated prospectus forecast dpu downwards after dilution and claimed she overachieved dpu forecast. It is like shifting the goalpost after the game has started.

chengwh1      ( Date: 01-May-2018 23:47) Posted: The dpu started dropping from last year, before the new tax rulings in The US kicked-in, ie,... before they moved to a low-tax country. IF the dpu started dropping this year, then yeah, could be because of the taxation effect. But dropping  since last year ? I hoped someone would clarify the proforma estimates they have done in their Rights Issue Circulars : why were their estimates saying dpu  would  increase, but when the times comes, ie upon the reporting after the acquisition, the dpu immediately dropped,... something is wrong somewhere,.... puayheng      ( Date: 01-May-2018 21:10) Posted: The headline screamed Distributable Income went up! This Ang Moh CEO has a good way of putting in a positive spin on a deteriorating DPU. They are good at that. At the end of the day DPU went down. Perhaps one can take comfort in that rights issue was given at a discount - good for those who subsbribed. The sponsor seems overly eager to divest their properties - this is a cause for concern. I am sure the added entity in a " low tax" environment to circumvent that revised tax ruling in US plays a part in the reducing dpu. Where it was tax free in the past, it is now funnelled throuh a low tax country. They wanted to double asset again in the next 1-2 years, most probably through more rights issue? There is no need to keep doubling asset to grow dpu. Just take a look at other well managed reits. I doubt the manager is acting in the best interest of the REIT holder.

 

Very few people make money from Insurance linked investments as I understand.

 

The dpu started dropping from last year, before the new tax rulings in The US kicked-in, ie,... before they moved to a low-tax country. IF the dpu started dropping this year, then yeah, could be because of the taxation effect. But dropping  since last year ?

I hoped someone would clarify the proforma estimates they have done in their Rights Issue Circulars : why were their estimates saying dpu  would  increase, but when the times comes, ie upon the reporting after the acquisition, the dpu immediately dropped,... something is wrong somewhere,....

puayheng      ( Date: 01-May-2018 21:10) Posted: The headline screamed Distributable Income went up! This Ang Moh CEO has a good way of putting in a positive spin on a deteriorating DPU. They are good at that. At the end of the day DPU went down. Perhaps one can take comfort in that rights issue was given at a discount - good for those who subsbribed. The sponsor seems overly eager to divest their properties - this is a cause for concern. I am sure the added entity in a " low tax" environment to circumvent that revised tax ruling in US plays a part in the reducing dpu. Where it was tax free in the past, it is now funnelled throuh a low tax country. They wanted to double asset again in the next 1-2 years, most probably through more rights issue? There is no need to keep doubling asset to grow dpu. Just take a look at other well managed reits. I doubt the manager is acting in the best interest of the REIT holder.   chengwh1      ( Date: 30-Apr-2018 14:32) Posted: http://infopub.sgx.com/FileOpen/MUST%20Q1%202018%20Press%20Release.ashx?App=Announcement& FileID=502210 A couple of points as below :- 1) the dpu for 1Q17 should hve been at 1.65 cents. BUT because of their corporate action, this dropped to 1.52 cents. DILUTION !!!!!!!!!!!!! 2) FOR 1Q18, THE DPU DROPPED FURTHER TO 1.51 CENTS. .....gosh... 3) the CEO said : " We are delighted to report a good set of 1Q2018 results with both our newly-acquired assets, Plaza and Exchange, contributing significantly to our net property income. Looks like they are more concerned about increasing the value of the Net Property Income, but not our dpu,.... no mention of ' contributing to  the dpu pyout' . 4) And soon, there is going to be another acquisition. ....more dilution ? I think I may save my ' bullets' for the coming corp action, t least this is what I think now,.. pending further opinions,... I referred to this thread,.. I' ve been asking and asking about the dpu payout but there has been no replies,.... We appreciated the food for the AGMs in the last few years, and the good manners and great treatment  for investors. Hopefully,... the dpu can grow too,....  Everything is good with this counter,... all metrics are encouraging,... it' s  a pity the dpu turns out like this,....

 

The headline screamed Distributable Income went up!
This Ang Moh CEO has a good way of putting in a positive spin on a deteriorating DPU. They are good at that. At the end of the day DPU went down. Perhaps one can take comfort in that rights issue was given at a discount - good for those who subsbribed. The sponsor seems overly eager to divest their properties - this is a cause for concern. I am sure the added entity in a " low tax" environment to circumvent that revised tax ruling in US plays a part in the reducing dpu. Where it was tax free in the past, it is now funnelled throuh a low tax country. They wanted to double asset again in the next 1-2 years, most probably through more rights issue? There is no need to keep doubling asset to grow dpu. Just take a look at other well managed reits. I doubt the manager is acting in the best interest of the REIT holder.

 

chengwh1      ( Date: 30-Apr-2018 14:32) Posted: http://infopub.sgx.com/FileOpen/MUST%20Q1%202018%20Press%20Release.ashx?App=Announcement& FileID=502210 A couple of points as below :- 1) the dpu for 1Q17 should hve been at 1.65 cents. BUT because of their corporate action, this dropped to 1.52 cents. DILUTION !!!!!!!!!!!!! 2) FOR 1Q18, THE DPU DROPPED FURTHER TO 1.51 CENTS. .....gosh... 3) the CEO said : " We are delighted to report a good set of 1Q2018 results with both our newly-acquired assets, Plaza and Exchange, contributing significantly to our net property income. Looks like they are more concerned about increasing the value of the Net Property Income, but not our dpu,.... no mention of ' contributing to  the dpu pyout' . 4) And soon, there is going to be another acquisition. ....more dilution ? I think I may save my ' bullets' for the coming corp action, t least this is what I think now,.. pending further opinions,... I referred to this thread,.. I' ve been asking and asking about the dpu payout but there has been no replies,.... We appreciated the food for the AGMs in the last few years, and the good manners and great treatment  for investors. Hopefully,... the dpu can grow too,....  Everything is good with this counter,... all metrics are encouraging,... it' s  a pity the dpu turns out like this,....

 

Yeah,... something just don' t add-up, why is it that when they  show us  their proforma calculations, they always indicate that after all the actions plus the acquisitions, the dpu will be higher ? It' s not like the dpu drops after a few qtrs, then that would be understandable, ie perhaps something happened and the tenant(s) moved out,... but on the immediate quarter after the acquisition, the dpu goes lower immediately,...

Maybe an employee can help address this question of mine in the above,... I' m sure you guys are monitoring this thread,.... why is the above happening please ?

Thank you.

ehclim      ( Date: 30-Apr-2018 20:10) Posted: I share the same sentiment as you are. The assets acquired are not accretive hence the DPU is  falling. They buy more assets to enrich the manager since they are awarded with 1 or 2% commission for asset' s acquisition or disposal. chengwh1      ( Date: 30-Apr-2018 17:17) Posted: Based on the below, I' m thinking not to subscribe in the coming Rights Issue or Preferential Offering Exercise,.... It' s okay with the dilution, at least I will continue to maintain my Average Price at a low level,...