Mapletree PanAsia C    Last:1.27   -

MCT

of course its about the interest of the sponsor, SGX' s listing rule allows sponsor to own 100% of the manager so the sponsor can choose the directors, choose the management of the manager, of course whatever the manager propose is for the sponsor' s interest. this is how SGX attracts sponsors to list their reits on SGX by having rules that favors the sponsor, it also ended up attracting all kind of scammers and crooks to list their reits in Singapore. Eagle HT is a great example, the sponsor controls the manager and is also the tenant. 

ksangks      ( Date: 10-Jan-2022 22:18) Posted: HK retail shop rental down by 50 % as. compared to 3 years ago. Festival walk is an liability now. Joelton      ( Date: 10-Jan-2022 09:03) Posted: MCT-MNACT merger makes most sense when viewed from perspective of Mapletree Investments Unitholders of MCT should vote against the deal, unitholders of MNACT should sell, and everyone should realise Reit mergers are really about the sponsors   AFTER digesting the proposed merger of Mapletree Commercial Trust (MCT) and Mapletree North Asia Commercial Trust (MNACT) over the past week, the verdict from the market seems clear: MCT has lost 8.5 per cent of its market value while MNACT has slipped 1.8 per cent.   As I see it, the implications of this thumbs-down from the market are 3-fold:   Unitholders of MCT should vote against the merger. Unitholders of MNACT should sell their holdings in the market to take advantage of MNACT' s elevated but falling unit price. Mapletree Investments - the sponsor group behind MCT and MNACT - should prepare to address concerns that the merger prioritises its own interests over those of investors who have been supporting its capital management platforms. Under the proposed merger, unitholders of MNACT will exchange each unit they own for 0.5963 of a new MCT unit or 0.5009 of a new MCT unit plus S$0.1912 in cash.   The gross exchange ratio of 0.5963 is very much in favour of unitholders of MNACT.   Just before the merger announcement, MNACT had closed at S$1.11 while MCT had closed at S$2.00. Given the exchange ratio, units in MNACT were being priced at more than S$1.19 worth of MCT units - or some 7 per cent more than MNACT' s market price.   Not surprisingly, since the merger was announced on Dec 31, the relative market prices of MNACT and MCT have moved towards the gross exchange ratio under the deal.   On Jan 3, the first post-announcement trading day, MNACT climbed 3.6 per cent to close at S$1.15 while MCT fell 4 per cent to close at S$1.92.   MCT has continued falling though, dragging MNACT down with it. On Friday, MCT closed at S$1.83 while MNACT closed at S$1.09.   Why is the market seemingly baulking at MCT' s proposal to combine itself with MNACT?   Merits of merger   Much like every other real estate investment trust (Reit) merger proposed over the last couple of years, the combination of MCT and MNACT is premised on the idea that bigger is better.   MCT currently owns 5 Singapore-based properties worth S$8.8 billion, while MNACT holds 13 properties worth S$8.3 billion located in China, Hong Kong, Japan and South Korea.   The combined entity - to be named Mapletree Pan Asia Commercial Trust (MPACT) - would be more diversified in terms of assets, geography and tenants.   MPACT is also expected to be among the 10 largest Reits in Asia, putting it in a stronger position to garner an investor following.   On top of that, the merger is expected to be immediately accretive in terms of distribution per unit (DPU) and net asset value (NAV) per unit for unitholders of MCT.   On a proforma basis, MCT' s DPU for the 6 months to Sep 30, 2021 would have been boosted by as much as 8.9 per cent. Its NAV per unit as at Sep 30, 2021 would have been lifted by as much as 7.1 per cent.   Higher valuation unlikely   However, MCT has a better performance track record than MNACT.   Since its initial public offering (IPO) in 2011, MCT' s DPU and NAV per unit have grown by compound annual rates of 4.8 per cent and 6.3 per cent, respectively.   MNACT' s DPU and NAV per unit have grown by much slower compound annual rates of 1.9 per cent and 3.2 per cent, respectively, since its IPO in 2013.   Before the merger was unveiled, MCT was trading at an annualised H1 FY2022 DPU yield of 4.4 per cent and a 16.3 per cent premium to its NAV as at Sep 30 2021. (Mapletree' s Reits have March year-ends).   MNACT was trading at an annualised H1 FY2022 DPU yield of 6.2 per cent and a 12.3 per cent discount to NAV as at Sep 30 2021.   While the merger with MNACT will certainly enlarge and diversify MCT' s portfolio, it may not lead to a superior market valuation for the combined entity.   For one thing, the largest asset in MPACT' s portfolio will be Festival Walk in Hong Kong - which includes a shopping mall that suffered rental reversions of negative 30 per cent in the first half of FY2022.   Another concern is that Festival Walk' s leasehold title will expire in 25 years - on June 30, 2047. Comprising a mall and offices, Festival Walk is valued at some S$4.45 billion and will account for more than one-quarter of MPACT' s portfolio.   The largest asset MCT currently owns is VivoCity, a thriving mall that is highly visible to Singapore-based investors. The property - which has a 99-year leasehold title starting on Oct 1, 1997 - is valued at nearly S$3.15 billion and accounts for more than one-third of MCT' s portfolio.   MCT achieved a positive 2.3 per cent portfolio rental reversion in H1 FY2022. Its office and business park assets saw a 1.5 per cent reversion while its retail properties benefited from a 3.5 per cent reversion.   Vote against merger   On balance, MCT would probably be better off not merging with MNACT.   While it would be smaller, it would arguably wield a superior market valuation - better enabling it to raise funds and make acquisitions on terms that would be immediately accretive to its DPU and NAV per share.   More to the point, its unitholders would be spared the market de-rating that seems to be unfolding.   Of course, if unitholders of MCT do not pass the resolutions to implement the proposed merger, MNACT is likely to be hit by a nasty sell-off.   During the 1-month period leading up to the announcement of the merger, MNACT rallied 11 per cent.   By selling in the market, unitholders of MNACT would be protecting themselves from further de-rating of MCT in anticipation of the merger going through as well as the risk of MNACT becoming untethered from MCT if the merger is blocked.   Sponsors' priorities   This brings me to the question of why the merger is being proposed at all.   Two months ago, this column asserted that Reit mergers in the local market have been less about the pursuit of size than the priorities of their sponsors.   The proposed merger of MCT and MNACT starts to make more sense when viewed from that angle. MPACT is likely to be a far more effective and viable asset securitisation platform for Asian commercial property than MNACT, and thus more useful to Mapletree Investments.   MCT and MNACT are not the only Mapletree Reits currently in the spotlight.   Mapletree Logistics Trust (MLT) is due to hold an extraordinary general meeting this week to seek approval for the acquisition of 16 properties from its sponsor for more than S$1 billion.   On a pro forma basis, the acquisition would lift MLT' s DPU by 1.1 per cent.   However, excluding the " income support" provided to some of the properties that are still undergoing stabilisation, the pro forma impact on MLT' s DPU would actually be marginally dilutive.   Coming just as MCT and MNACT are trading lower on their merger proposal, this could add to the unfortunate perception that Mapletree Investments' priorities are not aligned with the interests of public investors.

 

HK retail shop rental down by 50 % as. compared to 3 years ago. Festival walk is an liability now.

Joelton      ( Date: 10-Jan-2022 09:03) Posted: MCT-MNACT merger makes most sense when viewed from perspective of Mapletree Investments Unitholders of MCT should vote against the deal, unitholders of MNACT should sell, and everyone should realise Reit mergers are really about the sponsors   AFTER digesting the proposed merger of Mapletree Commercial Trust (MCT) and Mapletree North Asia Commercial Trust (MNACT) over the past week, the verdict from the market seems clear: MCT has lost 8.5 per cent of its market value while MNACT has slipped 1.8 per cent.   As I see it, the implications of this thumbs-down from the market are 3-fold:   Unitholders of MCT should vote against the merger. Unitholders of MNACT should sell their holdings in the market to take advantage of MNACT' s elevated but falling unit price. Mapletree Investments - the sponsor group behind MCT and MNACT - should prepare to address concerns that the merger prioritises its own interests over those of investors who have been supporting its capital management platforms. Under the proposed merger, unitholders of MNACT will exchange each unit they own for 0.5963 of a new MCT unit or 0.5009 of a new MCT unit plus S$0.1912 in cash.   The gross exchange ratio of 0.5963 is very much in favour of unitholders of MNACT.   Just before the merger announcement, MNACT had closed at S$1.11 while MCT had closed at S$2.00. Given the exchange ratio, units in MNACT were being priced at more than S$1.19 worth of MCT units - or some 7 per cent more than MNACT' s market price.   Not surprisingly, since the merger was announced on Dec 31, the relative market prices of MNACT and MCT have moved towards the gross exchange ratio under the deal.   On Jan 3, the first post-announcement trading day, MNACT climbed 3.6 per cent to close at S$1.15 while MCT fell 4 per cent to close at S$1.92.   MCT has continued falling though, dragging MNACT down with it. On Friday, MCT closed at S$1.83 while MNACT closed at S$1.09.   Why is the market seemingly baulking at MCT' s proposal to combine itself with MNACT?   Merits of merger   Much like every other real estate investment trust (Reit) merger proposed over the last couple of years, the combination of MCT and MNACT is premised on the idea that bigger is better.   MCT currently owns 5 Singapore-based properties worth S$8.8 billion, while MNACT holds 13 properties worth S$8.3 billion located in China, Hong Kong, Japan and South Korea.   The combined entity - to be named Mapletree Pan Asia Commercial Trust (MPACT) - would be more diversified in terms of assets, geography and tenants.   MPACT is also expected to be among the 10 largest Reits in Asia, putting it in a stronger position to garner an investor following.   On top of that, the merger is expected to be immediately accretive in terms of distribution per unit (DPU) and net asset value (NAV) per unit for unitholders of MCT.   On a proforma basis, MCT' s DPU for the 6 months to Sep 30, 2021 would have been boosted by as much as 8.9 per cent. Its NAV per unit as at Sep 30, 2021 would have been lifted by as much as 7.1 per cent.   Higher valuation unlikely   However, MCT has a better performance track record than MNACT.   Since its initial public offering (IPO) in 2011, MCT' s DPU and NAV per unit have grown by compound annual rates of 4.8 per cent and 6.3 per cent, respectively.   MNACT' s DPU and NAV per unit have grown by much slower compound annual rates of 1.9 per cent and 3.2 per cent, respectively, since its IPO in 2013.   Before the merger was unveiled, MCT was trading at an annualised H1 FY2022 DPU yield of 4.4 per cent and a 16.3 per cent premium to its NAV as at Sep 30 2021. (Mapletree' s Reits have March year-ends).   MNACT was trading at an annualised H1 FY2022 DPU yield of 6.2 per cent and a 12.3 per cent discount to NAV as at Sep 30 2021.   While the merger with MNACT will certainly enlarge and diversify MCT' s portfolio, it may not lead to a superior market valuation for the combined entity.   For one thing, the largest asset in MPACT' s portfolio will be Festival Walk in Hong Kong - which includes a shopping mall that suffered rental reversions of negative 30 per cent in the first half of FY2022.   Another concern is that Festival Walk' s leasehold title will expire in 25 years - on June 30, 2047. Comprising a mall and offices, Festival Walk is valued at some S$4.45 billion and will account for more than one-quarter of MPACT' s portfolio.   The largest asset MCT currently owns is VivoCity, a thriving mall that is highly visible to Singapore-based investors. The property - which has a 99-year leasehold title starting on Oct 1, 1997 - is valued at nearly S$3.15 billion and accounts for more than one-third of MCT' s portfolio.   MCT achieved a positive 2.3 per cent portfolio rental reversion in H1 FY2022. Its office and business park assets saw a 1.5 per cent reversion while its retail properties benefited from a 3.5 per cent reversion.   Vote against merger   On balance, MCT would probably be better off not merging with MNACT.   While it would be smaller, it would arguably wield a superior market valuation - better enabling it to raise funds and make acquisitions on terms that would be immediately accretive to its DPU and NAV per share.   More to the point, its unitholders would be spared the market de-rating that seems to be unfolding.   Of course, if unitholders of MCT do not pass the resolutions to implement the proposed merger, MNACT is likely to be hit by a nasty sell-off.   During the 1-month period leading up to the announcement of the merger, MNACT rallied 11 per cent.   By selling in the market, unitholders of MNACT would be protecting themselves from further de-rating of MCT in anticipation of the merger going through as well as the risk of MNACT becoming untethered from MCT if the merger is blocked.   Sponsors' priorities   This brings me to the question of why the merger is being proposed at all.   Two months ago, this column asserted that Reit mergers in the local market have been less about the pursuit of size than the priorities of their sponsors.   The proposed merger of MCT and MNACT starts to make more sense when viewed from that angle. MPACT is likely to be a far more effective and viable asset securitisation platform for Asian commercial property than MNACT, and thus more useful to Mapletree Investments.   MCT and MNACT are not the only Mapletree Reits currently in the spotlight.   Mapletree Logistics Trust (MLT) is due to hold an extraordinary general meeting this week to seek approval for the acquisition of 16 properties from its sponsor for more than S$1 billion.   On a pro forma basis, the acquisition would lift MLT' s DPU by 1.1 per cent.   However, excluding the " income support" provided to some of the properties that are still undergoing stabilisation, the pro forma impact on MLT' s DPU would actually be marginally dilutive.   Coming just as MCT and MNACT are trading lower on their merger proposal, this could add to the unfortunate perception that Mapletree Investments' priorities are not aligned with the interests of public investors.

 

Mapletree Commercial Trust sees SGD87 million rout in institutional funds

https://www.reitsweek.com/2022/01/mapletree-commercial-trust-sees-sgd87-million-rout-in-institutional-funds.html

 

A lot of expert analysis below is taken from coffee shop' s stories and views... there' s nothing new that we do not already know or posted or discussed here.... looks like some parroting rookie again trying to teach the coffee shop uncles...
You can write what you want, but the deal, as far as I know, will be done. No point going through the motion again.

 

 

Primary Merge Objective of MCT and MNACT is for paying Taxes purpose both are Temasek Cash Cow. Merger deal GST more than 566 Millions. Dangerious to hold any stock P/B more than 1.

 

Yes, fun reading to me.

 

You are a LT investor. This kind of noise shouldn' t bother you lah.

pkli899      ( Date: 07-Jan-2022 16:58) Posted: Haha, Bro bystander1965, I lazy la..........only read both threads and already plenty to ponder. Almost like Semb Marine thread, very nice reading to me.

 

Haha, Bro bystander1965, I lazy la..........only read both threads and already plenty to ponder.
Almost like Semb Marine thread, very nice reading to me.

 

Eh? You have done more analysis?
Anyway, if MCT recovers to $2 before the merger, my inclination is I would hold on to MNACT even more and take the cash+scrip route.
If it drops further, MNACT will follow suit for sure. Depending on how they fall, I will add MANCT or MCT.
 

pkli899      ( Date: 07-Jan-2022 16:49) Posted: My inclination too. Long term is good for MCT. There isn' t much to be acquired from sponsor locally. From 3rd party is another story la. Anyway, this saga really bring out many views. For or against aside, very interesting and beneficial reads from both threads. I only wish less shouting and more cordial exchange of views. HVRRVH      ( Date: 07-Jan-2022 16:39) Posted: Honestly I sense opportunity. MCT current pipelines [ROFR] are all local properties around Vivo [St James, Harbourfront etc] and this will restrict its grow. Sure they can make 3rd party purchases but chances are these suitable 3rd party properties will have ROFR tying to their respective parents. So, MCT can' t grow without venturing oveseas and since MNACT is valued below NAV, why not go for it? It make sense in the long term especially since Mapletree as the sponsor still can inject some of its overseas properties to the soon MPACT when the time is right. I hold both MCT and MNACT right now. I have not taken any action yet since it is still a long way to go for the merger, indeed, we don' t even have XR date yet. I will keep observing the market and if MCT really try $1.7x something, maybe it will force my hands to add. On the other hand, if MNACT goes up to $1.15 or more as MCT recovering toward $2, then I may sell MNACT. Let' s see how.

 

My inclination too.
Long term is good for MCT.
There isn' t much to be acquired from sponsor locally.
From 3rd party is another story la.
Anyway, this saga really bring out many views.
For or against aside, very interesting and beneficial reads from both threads.
I only wish less shouting and more cordial exchange of views.

HVRRVH      ( Date: 07-Jan-2022 16:39) Posted: Honestly I sense opportunity. MCT current pipelines [ROFR] are all local properties around Vivo [St James, Harbourfront etc] and this will restrict its grow. Sure they can make 3rd party purchases but chances are these suitable 3rd party properties will have ROFR tying to their respective parents. So, MCT can' t grow without venturing oveseas and since MNACT is valued below NAV, why not go for it? It make sense in the long term especially since Mapletree as the sponsor still can inject some of its overseas properties to the soon MPACT when the time is right. I hold both MCT and MNACT right now. I have not taken any action yet since it is still a long way to go for the merger, indeed, we don' t even have XR date yet. I will keep observing the market and if MCT really try $1.7x something, maybe it will force my hands to add. On the other hand, if MNACT goes up to $1.15 or more as MCT recovering toward $2, then I may sell MNACT. Let' s see how.

 

Don' t think they deserve our trust anymore. 

https://en.wikipedia.org/wiki/Credit_rating_agencies_and_the_subprime_crisis

PhillipTan      ( Date: 06-Jan-2022 13:05) Posted: Moody' s reviews MCT for downgrade, MNACT for upgrade Moody' s Investors Service has placed the Baa1 issuer rating of Mapletree Commercial Trust (MCT) on review for downgrade, ahead of its planned merger with Mapletree North Asia Commercial Trust (MNACT) in a S$4.2 billion deal. Concurrently, Moody' s is reviewing MNACT' s Baa3 rating for an upgrade, the credit rating agency announced on Wednesday (Jan 5) after trading hours. On Dec 31, MCT and MNACT proposed a merger that would give the combined entity a theoretical market cap of S$10.5 billion, making it the seventh-largest Reit in Asia. The transaction is expected to close by end-June. " The review for downgrade reflects the potential weakening of MCT' s credit metrics and uncertainty around its financial policy following the merger with MNACT," said Moody' s analyst Tan Junling. The deal could raise MCT' s leverage, considering MNACT' s weaker leverage profile and the incurrence of incremental debt and perpetual securities to fund the merger' s cash consideration, Moody' s noted. On a pro forma basis, it expects MCT' s adjusted net debt to increase to around 9.4 to 9.9 times Ebitda (earnings before interest, taxes, depreciation, and amortisation), from 8.2 times for the year ending March 2022. This is weaker than the 8.5 times downgrade threshold for MCT' s Baa1 rating. Conversely, MNACT' s review for upgrade reflects expectations that the trust could benefit from the deal. " However, the final impact on MNACT' s rating will depend on our assessment of the likelihood of extraordinary support that MCT will provide to MNACT in case of distress," Tan added. If the merger goes ahead as planned, Moody' s review of MCT will focus on the business profile of the combined trust, the funding structure for the S$417.3 million cash consideration and the trust' s financial policy, including its liquidity profile. MCT' s rating could be downgraded by up to 1 notch, if Moody' s assesses it to have a more aggressive long-term financial policy post-merger. But the agency will also take into account its increased scale and geographic diversification. The review of MNACT will focus on the ability and willingness of MCT to provide support to MNACT, its business strategy, capital structure and transparency around operational and financial performance. An upgrade will further rest on MNACT' s stand-alone credit profile remaining intact. Moody' s is also reviewing its (P)Baa1 senior unsecured ratings on the medium-term note programs of MCT and its unit Mapletree Commercial Trust Treasury Company (MCTTC), as well as the Baa1 ratings on senior unsecured notes drawn down from the program under MCTTC. MNACT-related ratings under review include the provisional (P)Baa3 ratings on the senior unsecured euro medium-term note (EMTN) programme of MNACT the guaranteed senior unsecured EMTN programmes of 2 relevant entities, as well as the Baa3 guaranteed senior unsecured rating on the notes under Mapletree North Asia Commercial Treasury Company (HKSAR)' s EMTN programme. The outlook on all MCT' s ratings has been changed from " stable" to " rating under review" , while that of MNACT has been changed from " negative" to " rating under review" . Units of MCT closed at S$1.84 on Wednesday, up 1.1 per cent, while units of MNACT closed flat at S$1.09.

 

Honestly I sense opportunity. MCT current pipelines [ROFR] are all local properties around Vivo [St James, Harbourfront etc] and this will restrict its grow. Sure they can make 3rd party purchases but chances are these suitable 3rd party properties will have ROFR tying to their respective parents. So, MCT can' t grow without venturing oveseas and since MNACT is valued below NAV, why not go for it? It make sense in the long term especially since Mapletree as the sponsor still can inject some of its overseas properties to the soon MPACT when the time is right. I hold both MCT and MNACT right now. I have not taken any action yet since it is still a long way to go for the merger, indeed, we don' t even have XR date yet. I will keep observing the market and if MCT really try $1.7x something, maybe it will force my hands to add. On the other hand, if MNACT goes up to $1.15 or more as MCT recovering toward $2, then I may sell MNACT. Let' s see how. 

 

This week is bank show time,almost all property down

 

Seems market doesn't like the merger plan. Should see 1.7x series next week. 🤔 🤔

 

Now you resorting to parroting... haha really low class loser...
And you even too stupid to notice your own dumb reasoning in the first place. Let me direct you to it..

You loudly declared " MCT went down to $1.50 in March 2020 and $1.72 in Oct 2020...."
well, it didn' t take 100 years to bounce back to above $2.00. It took only a few months. 

Now try repeating your idiocy, after me
 

lukewong82      ( Date: 06-Jan-2022 21:10) Posted: Haha. You must be really dumb to find my analogy dumb in the first place. Thanks again for double confirm your dumb reasoning.

 

Haha. You must be really dumb to find my analogy dumb in the first place. Thanks again for double confirm your dumb reasoning.

 

Haha. You must be really dumb to find my reasoning dumb in the first place. Thanks again for double confirm your dumb analogy.

lukewong82      ( Date: 06-Jan-2022 17:15) Posted: yes.. u started with ur dumb reasoning first. so i expand ur dumb reasoning for u. Sure, u are welcomed, no need to thank me. Lobster      ( Date: 06-Jan-2022 10:47) Posted: ya??!? well, thanks for confirming your dumb analogy... gezz... 100 years.... 10cts..... $100... guy must be dumbfounded from my brutal retort to made such dumb analogy

 

yes.. u started with ur dumb reasoning first. so i expand ur dumb reasoning for u. Sure, u are welcomed, no need to thank me.

Lobster      ( Date: 06-Jan-2022 10:47) Posted: ya??!? well, thanks for confirming your dumb analogy... gezz... 100 years.... 10cts..... $100... guy must be dumbfounded from my brutal retort to made such dumb analogy    lukewong82      ( Date: 05-Jan-2022 23:26) Posted: ya cos ur reasoning was dumb..

 

I say Mct can pay 5ct for the coming 2HMar' 22. Its net operating cashflow for the corresponding half is 207.2m with the earlier one at 206.4m. It thus paid 5.32c for the
last H. -- 5.32c x 3316.2m shs = $175.89m. The cashflow could thus well pay for this. To pay 5c this coming 2H would thus be not a problem for we expect the cashflow to be about the same or slightly higher as the covid restrictions have come down, I should say, significantly & the rental susidies as well. And, I don' t think the current trading prices of Mct have priced in this 5ct yet.    wyeo.