EC World Reit
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Hidden Gem of e-Commerce REIT related to Alibaba
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Price has broken resistance of 80c today,....
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,...
laksaman57 ( Date: 12-May-2019 14:17) Posted:
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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,...
laksaman57 ( Date: 12-May-2019 14:17) Posted:
Not to be forgotten
prophetjul ( Date: 09-Apr-2019 09:01) Posted:
cmeng
The bold part certainly brings out the red flag.
From the Annual Report.
Material Uncertainty Related to Going Concern
We draw attention to Note 2.1 to these financial statements, which indicates that the current liabilities of the Group
and of ECW exceeded the current assets by S$326,517,000 and S$31,883,000 respectively. These events or conditions,
along with other matters as set forth in Note 2.1, indicate that a material uncertainty exists that may cast significant
doubt on the ability of the Group and of ECW to continue as going concerns. Our opinion is not modified in respect
of this matter.
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Mgr isn't transparent on it's withholding tax strategy, unlike Kep-KBS & Manulife reit. Suka Suka can pop up anytime.
Not to be forgotten
prophetjul ( Date: 09-Apr-2019 09:01) Posted:
cmeng
The bold part certainly brings out the red flag.
From the Annual Report.
Material Uncertainty Related to Going Concern
We draw attention to Note 2.1 to these financial statements, which indicates that the current liabilities of the Group
and of ECW exceeded the current assets by S$326,517,000 and S$31,883,000 respectively. These events or conditions,
along with other matters as set forth in Note 2.1, indicate that a material uncertainty exists that may cast significant
doubt on the ability of the Group and of ECW to continue as going concerns. Our opinion is not modified in respect
of this matter.
cmengchan ( Date: 09-Apr-2019 07:02) Posted:
The IAR is referring to current liabilities only. That means liabilities that need to be paid with 12 months.
We draw attention to Note 2.1 to these financial statements, which indicates that the current liabilities of the Group and of ECW exceeded the current assets by S$326,517,000 and S$31,883,000 respectively |
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It's as good as a S-chip ....To be avoided
chengwh1 ( Date: 12-May-2019 13:52) Posted:
| Bro,... thank you for your many inputs. I' m wondering,.. why do other REITs which have assets overseas, egs, Frasers Logistics and Manulife US REIT,... do not have this repatriation event which incurred withholding taxes ? Other REITs collect rentals from overseas too, to pay dpus to us in SG, right ? Don' t they repatriate funds back to pay us divvies ? |
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Bro,... thank you for your many inputs. I' m wondering,.. why do other REITs which have assets overseas, egs, Frasers Logistics and Manulife US REIT,... do not have this repatriation event which incurred withholding taxes ? Other REITs collect rentals from overseas too, to pay dpus to us in SG, right ? Don' t they repatriate funds back to pay us divvies ?
Off-shore loan also need to repatriate money to pay interest. If off-shore loan increase, so will the repatriation amount and consequently the withholding tax.
Without mgr guiding statement as in 1Q18 ...."The Manager does not plan to repatriate any further cash from PRC asset companies for the rest of FY2018" ...it can pop up in later quarters of the year. Dyodd.
When cash available in sgp for distribution run low, funds transfer will be needed and consequently withholding tax will apply. Yes/No ?
chengwh1 ( Date: 11-May-2019 16:20) Posted:
I don' t see any mention of withholding tax in the 1Q19 report. Last year, the 1Q18 report would have mentioned on withholding tax since the dpu paid out for 1Q18 was a net amount after deducting the withholding tax.
laksaman57 ( Date: 24-Apr-2019 12:00) Posted:
| Will withholding tax will be absence in 2019 ? |
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I spotted something here. The 1Q19 report yesterday said that the dpu GREW from 1.469c in 1Q18 to 1.501c in 1Q19 this year. BUT if we look back at the 1Q18 report, the dpu of 1.469c was NETT of the withholding tax. If inclusive with the withholding tax, the dpu would have been 1.570c in 1Q18.
For the latest 1Q19, the dpu of 1.501c has NO withholding tax involvement.
Hence, can we say that the ACTUAL dpu has DROPPED from 1.570c in 1Q18 to 1.501c in 1Q19 ?cmengchan ( Date: 11-May-2019 10:50) Posted:
| EC World REIT has announced a distribution of 1.501 cents per unit in EC World REIT for the period from 1 January 2019 to 31 March 2019 |
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I don' t see any mention of withholding tax in the 1Q19 report. Last year, the 1Q18 report would have mentioned on withholding tax since the dpu paid out for 1Q18 was a net amount after deducting the withholding tax.
laksaman57 ( Date: 24-Apr-2019 12:00) Posted:
| Will withholding tax will be absence in 2019 ? |
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EC World REIT has announced a distribution of 1.501 cents per unit in EC World REIT for the period from 1 January 2019 to 31 March 2019
Will withholding tax will be absence in 2019 ?
Guys,... sorry,... cannot answer so many questions in the previous posts,... but I appreciated your inputs here,... I was also busy with First REIT' s AGM today,... so many issues there,... and that ' angmoh lawyer' Chairman of First REIT undiplomatically disallowed Mr Budi Wijaya from answering one unitholder' s questions,... truely unprofessional there of him.
Anyway, back to EC World REIT - if you guys look at that part of the AR2018 which mentions abt loans to be paid-up, you will see there are 400mil+ of loans which are REPAYABLE WITHIN ONE YEAR. That' s where the refinancing needs to come in.
Yes, but its referring to
CURRENT Assets vis
CURRENT Liabilities.
Current Assets will include Cash, Fix Deposits, Inventory, etc
Current Liabilities include payment to suppliers (usually with 30-60 days), bank loans due within next 12 months, etc
EC World has other assets like Land, Warehouse, Trucks, etc... which are
NON-CURRENT Assets.
If the bank loan is not due this year, it will be classified as
NON-CURRENT Liabilities, and would not be flagged as audit concern.
This Auditor concern is mis-match of CURRENT Assets and Liabilities, which mean that EC World might not have enough liquid funds to pay for all the liabilities due in next 12 months.
prophetjul ( Date: 09-Apr-2019 09:01) Posted:
cmeng
The bold part certainly brings out the red flag.
From the Annual Report.
Material Uncertainty Related to Going Concern
We draw attention to Note 2.1 to these financial statements, which indicates that the current liabilities of the Group
and of ECW exceeded the current assets by S$326,517,000 and S$31,883,000 respectively. These events or conditions,
along with other matters as set forth in Note 2.1, indicate that a material uncertainty exists that may cast significant
doubt on the ability of the Group and of ECW to continue as going concerns. Our opinion is not modified in respect
of this matter.
cmengchan ( Date: 09-Apr-2019 07:02) Posted:
The IAR is referring to current liabilities only. That means liabilities that need to be paid with 12 months.
We draw attention to Note 2.1 to these financial statements, which indicates that the current liabilities of the Group and of ECW exceeded the current assets by S$326,517,000 and S$31,883,000 respectively |
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Good catch 🎯
chengwh1 ( Date: 08-Apr-2019 22:15) Posted:
The Independent Auditor reported in the LATEST IAR that her assets ARE LESS THAN her liabilities !
tyk2323 ( Date: 08-Apr-2019 19:33) Posted:
| Thanks for the explanation! Touch wood, worse case scenario, If liquidate liao pay off debts we still couldnt get money? The assets is more than liabilities. |
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Yes.
The liabilities in a REIT cannot be more than its assets IMO since there is a limit to borrowings against its asset value.
Its set at 40%? So if this rule is followed, the liabilities whcih are predominantly loans, will never exceed the total asset values.
tyk2323 ( Date: 09-Apr-2019 10:11) Posted:
The auditor is talking about current assets is less than the current liabilities.
The non-current assests is still more than all the liabilities.
chengwh1 ( Date: 08-Apr-2019 22:15) Posted:
| The Independent Auditor reported in the LATEST IAR that her assets ARE LESS THAN her liabilities |
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Any SJF thread titled with " Hidden Gem" is already a Red Flag......................
The auditor is talking about current assets is less than the current liabilities.
The non-current assests is still more than all the liabilities.
chengwh1 ( Date: 08-Apr-2019 22:15) Posted:
The Independent Auditor reported in the LATEST IAR that her assets ARE LESS THAN her liabilities !
tyk2323 ( Date: 08-Apr-2019 19:33) Posted:
| Thanks for the explanation! Touch wood, worse case scenario, If liquidate liao pay off debts we still couldnt get money? The assets is more than liabilities. |
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