EC World Reit    Last:0.28   -

Hidden Gem of e-Commerce REIT related to Alibaba

DPU 1.489 cents.

 

Only one way for sgd .. DOWN

 

The weakening of the SGD vs the USD is NOT as bad as the YUan ' being made to weaken' vs the USD. Anyway,... you can see the chart below for the trend of the SGDCNY for the last 6 months,....
https://finance.yahoo.com/chart/SGDCNY%3DX#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%3D%3D

BUT,..... if the MAS does reduce the appreciation of the SGD in the coming policy mtg,... then yeah, there is some hope for the CNY.

laksaman57      ( Date: 17-Aug-2019 23:09) Posted: Sgp dollars also trending down against usd will help to negate yuan impact.

 

Sgp dollars also trending down against usd will help to negate yuan impact.

 

Problem is Yuan is being devalued,... hence, though dpu in Yuan may be growing, but this dpu in SGD (given out to us) will be dropping,.... unless,....

The MAS lessens the appreciation gradient of the SGD in the mtg on Oct 14th....

laksaman57      ( Date: 16-Aug-2019 13:46) Posted: Alibaba result showed e-commerce within China indeed strong. EC world's tenants in good position.

 

Alibaba result showed e-commerce within China indeed strong. EC world's tenants in good position.

 

The EC World REIT income is fixed. So, Alibaba doing well will not increase REIT DPU. However, at least it shows that the eCommerce sector is still doing well.

 

https://www.channelnewsasia.com/news/business/alibaba-results-beat-estimates-on-cloud--e-commerce-growth-11812384

"...China's Alibaba Group Holding Ltd reported better-than-expected quarterly revenue and profit on Thursday, aided by growth in its e-commerce..."

 

Yuan ⬇ = dpu in sgd ⬇

 

https://www.forexlive.com/news/!/offshore-chinese-yuan-falls-to-lowest-levels-of-the-year-20190801

"..Trump announced fresh tariffs on China. The move puts the 7.00 level back into play.."

 

https://www.google.com/amp/s/www.bbc.com/news/amp/business-49199559

"US President Donald Trump has announced fresh tariffs of 10% on another $300bn of Chinese products from 1 September.."

 

http://www.xinhuanet.com/english/2019-07/08/c_138208190.htm

"The central parity rate of the Chinese currency renminbi, or the yuan, weakened 184 basis points to 6.8881 against the U.S. dollar Monday, .."

laksaman57      ( Date: 29-Jun-2019 11:53) Posted: Offshore loan expensive ? Exchange rate risk?

 

https://www.straitstimes.com/business/companies-markets/singapore-stocks-sti-resumes-monday-afternoon-down-13
 

DBS analyst Sachin Mittal said Singtel' s recent rally could be losing steam and investors may consider the opportunity to take some profit after the run-up.

Along with the broader market, the local banks returned from the weekend lower. DBS Group Holdings was $0.30 or 1.2 per cent lower at $25.33, OCBC Bank dropped $0.13 or 1.1 per cent to $11.26 and United Overseas Bank traded at $25.98, down $0.28 or 1.1 per cent.

Real estate investment trusts (Reits), which have hogged the limelight on the back of dovish stances from central banks, saw pullbacks from investors on Monday after a strong US non-farm payrolls for June strongly beat market expectations.

Among them, CapitaLand Commerical Trust units fell $0.04 or 1.7 per cent to $2.26 and Ascendas Reit was down $0.06 or 1.9 per cent to $3.12.

EC World Reit faced a heavy sell off on Monday, with its units down $0.03 or 3.9 per cent at $0.755 on 41.9 million shares traded, making it the most active counter on the Singapore bourse.

 

Withholding tax ?

 

Stock down 3 cents to 75.5 crnts on huge volume.

What is the reason?

 

看 业 绩 不 错 。

但 对 Singapore registered, China focused 的 阴 影 还 在 。

先 前 是 Midas, 最 近 是 Best World.

 

 

From the ann' t,....
" The Facilities are for a tenure of approximately three years (save for a RMB 77.0 million portion of the Onshore Facility which has a tenure of 10 years). The Facilities will be used to refinance all of EC World REIT&rsquo s existing onshore and offshore term loans due in 2019....."

Looks like ALL loans have been settled (refinanced) and no need to worry anymore FOR THE NEXT THREE YEARS.

I don' t see any other details of the loan packages.... how abt the interest rates ? Lower or higher than the previous packages ?

cmengchan      ( Date: 29-Jun-2019 11:16) Posted: Looks like refinancing hurdle is clear based on latest SGX posting laksaman57      ( Date: 12-May-2019 20:00) Posted: Good luck 👍

 

Withholding Tax ?

 

Offshore loan expensive ? Exchange rate risk?

 

Looks like refinancing hurdle is clear based on latest SGX posting

laksaman57      ( Date: 12-May-2019 20:00) Posted: Good luck 👍 chengwh1      ( Date: 12-May-2019 17:11) Posted: Well,.. to the refinancing event coming in July, I think this matter is quite well-handled till now. Pg 5 of the Press Release for 1Q19 stated the below :- On the refinancing exercise, the Manager is pleased to inform that we have received commitment for the loans expiring in July 2019 and will make the necessary announcement when the legal documentation is executed. Of course, the interest rate remains to be seen, but I think the chances are almost absolute that EC WR WILL GET  refinancing. The interest rate may be higher if the financier thinks that  EC WR is riskier than previously. The Lease Extensions for the three properties would certainly convince the banks and other financiers  of the viability of EC WR in the longer run,...