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From market sentiments, I will not be surprised it this continues dropping further
Maybe $1.81?
Any guesses what will be the closing price today for MCT?
Maybe $1.81?
Any guesses what will be the closing price today for MCT?
MCT pan asia...WILL BE DRAGGED DOWN by MAGIC. NO LONGER A FULLY LOCAL COMMERCIAL
AND RETAIL PROPERTIES. I WILL PLAY SAFE BET ONLY ON SG properties
hahaha those that see value in mnac will buy and those that don' t will not lor...mnac price has been battered down since the hk riot and then comes the covid (double whammy) and has been trading at a discount to pb since. Hence there is a pb disparity between mct(above pb) and mnac(below pb) which result in what it seems like a huge premium to pay compared to the share price before halt....for me i think is justifiable due to this, but ppl angry anyhow throw we cannot control ma
lol is this a competition of who can use bigger fonts?
Given the market price of MCT post announcement, I think the market agrees with those, including myself, that this is a bad deal. I will vote no when it comes.
Given the market price of MCT post announcement, I think the market agrees with those, including myself, that this is a bad deal. I will vote no when it comes.
I strongly disagree with that statement of yours
instead, you SHOULD see it as MCT using its gearing headroom to acquire MNAC assets
acquiring Festive walk is more lucrative than st james power station if you ask me.
Festive walk (currently 99.9% occupancy during covid) seems like it has a lot of potential (wait for post-covid)
Even C38U (cap mall + office) has gearing that would be higher than the merged maple tree powerhouse
instead, you SHOULD see it as MCT using its gearing headroom to acquire MNAC assets
acquiring Festive walk is more lucrative than st james power station if you ask me.
Festive walk (currently 99.9% occupancy during covid) seems like it has a lot of potential (wait for post-covid)
Even C38U (cap mall + office) has gearing that would be higher than the merged maple tree powerhouse
antifragile ( Date: 04-Jan-2022 11:22) Posted:
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Agree.
View it as MCT using its gearing headroom to acquire MNAC assets.
acquiring Festive walk is more lucrative than st james power station if you ask me.
Festive walk (currently 99.9% occupancy during covid) seems like it has a lot of potential (wait for post-covid)
View it as MCT using its gearing headroom to acquire MNAC assets.
acquiring Festive walk is more lucrative than st james power station if you ask me.
Festive walk (currently 99.9% occupancy during covid) seems like it has a lot of potential (wait for post-covid)
PhillipTan ( Date: 04-Jan-2022 11:55) Posted:
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I see this as a good chance to pick up MCT cheap
(I posted on the MAGIC thread also. )
MCT 1.86 now. so MAGIC also drop back to 1.11 ( = 1.86 * 0.596).
what a " value destruction" exercise: total market cap of MCT + MAGIC now is lower after the merger announcement. well done Mapletree.
I am a long time holder of both. I will vote NO in both E/AGM
MCT 1.86 now. so MAGIC also drop back to 1.11 ( = 1.86 * 0.596).
what a " value destruction" exercise: total market cap of MCT + MAGIC now is lower after the merger announcement. well done Mapletree.
I am a long time holder of both. I will vote NO in both E/AGM
think just market tantrum offering mnac high premium (subjective), almost 20% if you dont consider those insider front-runner few days before halt.
ttworld ( Date: 04-Jan-2022 11:19) Posted:
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Vote no please.
Lousy deal.
Lousy deal.
any light on why they dump?
milopeng ( Date: 04-Jan-2022 11:12) Posted:
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milopeng ( Date: 04-Jan-2022 11:12) Posted:
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wow so fast...bought 1.9 now 1.87-1.88...relentless dumping 
scoop more if below 1.84
scoop more if below 1.84
MCT down 3%, MNACT rises as much as 3.6% on proposed merger
MAPLETREE Commercial Trust' s (MCT) Mapletree Com Tr: N2IU -4% units plunged to a near 14-month low, while Mapletree North Asia Commercial Trust (MNACT) Mapletree NAC Tr: RW0U +3.6% reached a 21-month high on Monday (Jan 3).
On Friday, their managers proposed a merger of both real estate investment trusts (Reits), a move expected to propel the combined entity to become one of Asia' s largest Reits.
MNACT reached a high of S$1.15 at 9.29 am on Monday, up 3.6 per cent or S$0.04. The last time the counter closed near this level was Mar 5, 2020.
By 9.46 am, the North Asia-focused Reit was the third most traded by volume on the Singapore bourse with 22.4 million shares changing hands. The units were up S$0.03 or 2.7 per cent to S$1.14 by then.
MCT tumbled to a low of S$1.94 as at 9.46 am on Monday, down 3 per cent or S$0.06. The last time the counter closed near this level was Nov 9, 2020.
It was the seventh most traded by volume on the Singapore bourse by 9.46 am on Monday with 6.5 million shares changing hands. The units were up 2 per cent or S$0.04 by then.
No married deals were recorded, according to ShareInvestor data.
MCT and MNACT had resumed trading on Monday after the announcement, 4 days after its managers called for a trading halt on Dec 28.
Last Friday, the managers of MCT and MNACT announced that the merged entity - to be named Mapletree Pan Asia Commercial Trust (MPACT), will have a theoretical market capitalisation of approximately S$10.5 billion.
With the merger, the combined entity will rank within the top 3 Reits listed in Singapore, behind CapitaLand Integrated Commercial Trust and Ascendas Reit.
For MCT unitholders, the merger will be 8.9 per cent accretive to distribution per unit (DPU) and 6.5 per cent accretive to net asset value on a pro forma basis.
Meanwhile, the scheme consideration price represents a 7.6 per cent premium to MNACT' s trading price on Dec 27 and a 17.3 per cent premium to its 12-month volume-weighted average price.
The Reit managers said this translates to a 1-year total return of 32.2 per cent to MNACT unitholders.
Following the announcement, Maybank Kim Eng maintained " buy" on MCT, saying that it sees " strategic merits from an increased assets under management (AUM) diversification, stronger DPU growth and potentially lower cost of capital" .
Both CGS-CIMB and UOB Kay Hian (UOBKH) analysts said MCT unitholders can expect to benefit significantly from immediate DPU and NAV accretion.
UOBKH' s Jonathan Koh said they can expect to benefit from accretion to pro forma H1 FY2022 DPU by 7.5 per cent to 8.9 per cent. NAV per unit as at Sep 21 is also expected to increase 6.5 per cent to 8.9 per cent.
" We see benefits from an enlarged AUM, as MCT has lagged peers in driving inorganic growth due to its Singapore-focused investment mandate and limited sponsor pipeline," said analyst Chua Su Tye, adding that diversification across core Asian markets should add stability and reduce concentration risk by assets and tenancies.
" A merger could lift MCT' s free float by 1.5 times and raise its MSCI Singapore index weighting from 1.6 per cent to 2.4 per cent, leading to increased investor attention and potentially an improved cost of capital."
Still, Chua noted that some investors may view the dilution negatively, and therefore " execution will remain key, and management of the new Reit will need to prove it can deliver on an expanded growth mandate" .
CGS-CIMB analysts believe that the benefits of the merger would only be felt in the longer run, when the enlarged entity delivers accelerated growth prospects.
On this note, OCBC Investment Research said it is not " overly excited" about the merger from MCT' s perspective as it exposes the Reit to riskier markets such as China and Hong Kong.
Nevertheless, the analysts acknowledged the importance of scale in the Reits industry and the strategic benefits the enlarged entity would bring and recommended for unitholders to vote in favour of the proposed merger on pro forma DPU accretion.
DBS had said in a sector note in December that it believes mixed commercial S-Reits will offer stronger growth in the new year, propelled by the reopening of the economy and return-to-office recovery.
MCT was among the research team' s top picks in the sector, as according to DBS estimates, it is among the Reits that offer the strongest DPU growth compared to peers for FY2022.
Merits of Mapletree merger must be seen through longer-term lens
AS the world prepared on Dec 31 (Friday) to join in a chorus of Auld Lang Syne to welcome the new year, the managers of Mapletree Commercial Trust (MCT) and Mapletree North Asia Commercial Trust (MNACT) were singing a different tune.
The 2 Mapletree-linked real estate investment trusts (Reits) proposed to merge in a S$4.2 billion deal that will see the combined entity leapfrog its way to become the seventh largest Reit in Asia with a theoretical market capitalisation of S$10.5 billion.
To be named Mapletree Pan Asia Commercial Trust (MPACT), the merged entity will have assets under management (AUM) of approximately S$17.1 billion - combining MCT' s 5 Singapore assets with MNACT' s 13 properties in China, Hong Kong, Japan and South Korea.
The terms of the trust scheme are straightforward enough and, unlike many of the other Reit mergers, have at least tried to use fair benchmarks for valuations.
MNACT unitholders are to receive a scheme consideration of S$1.1949 for each MNACT unit held. They can elect to receive either 0.5963 new MCT unit at an issue price of S$2.0039 apiece, or a combination of 0.5009 consideration unit and S$0.1912 in cash.
The scheme consideration price of S$1.1949 is in line with MNACT' s net asset value (NAV), and represents a 7.6 per cent premium to MNACT' s trading price on Dec 27 and a 17.3 per cent premium to its 12-month volume-weighted average price.
For MCT unitholders, the merger will be 8.9 per cent accretive to distribution per unit (DPU) and 6.5 per cent accretive to NAV on a pro forma basis. The scheme issue price of MCT units is at a 19.3 per cent premium to ex-distribution NAV per unit and is equal to MCT' s 1-day volume weighted average price on Dec 27 - just before the deal was announced.
Some MCT unitholders, however, are not too pleased about the proposed merger. Their exasperation is understandable.
MCT has been a stalwart among the Singapore-listed real estate investment trusts (S-Reits). The pure-play Singapore commercial real estate player, which owns Mapletree Business City I and II as well as Singapore' s largest shopping mall VivoCity, has clocked an annualised total return of 12.9 per cent in the 5 years running up to the announcement of the proposed merger.
MNACT, on the other hand, has been struggling with underperforming assets. Over the same 5-year period, MNACT registered an annualised total return of 9.9 per cent.
MNACT' s biggest asset, Festival Walk in Hong Kong, had suffered extensive damage due to street protests in November 2019. When it reopened in January 2020 following repairs, Covid hit.
Investors have given the Reit managers a clear indication of what they think of the proposed merger.
On Jan 3, the first trading day after resumed post announcement of the merger, units of MCT tumbled 4 per cent or S$0.08 to S$1.92 - the lowest level since November 2020.
Conversely, units of MNACT jumped 3.6 per cent or S$0.04 to a 21-month high of S$1.15 on Jan 3.
From the point of view of Mapletree, however, now is as good a time as any for the proposed merger.
MCT registered a total return of negative 1.8 per cent in 2021, ranking it among the bottom 10 S-Reit performers. Meanwhile, MNACT saw a total return of 22 per cent last year.
If the Covid-19 pandemic has taught us anything, it is the importance of diversification.
With a Singapore-focused investment mandate, MCT stands the risk of becoming a victim of its own success.
It has lagged its peers in driving inorganic growth due to the limited number of commercial properties in Singapore - including under its sponsor' s pipeline - that are attractive enough for a high-performing Reit.
While MCT has done well so far, the question is where the longer-term growth is going to come from.
One of the key merits of the proposed merger would be an investment mandate that will be expanded geographically to include other key Asian gateway markets.
MPACT is expected to have a gearing ratio of 39.2 per cent as at Sep 30, 2021, on a pro forma basis, translating to a debt headroom of S$3.8 billion.
Post-merger, the first order of business for MPACT would be to make acquisitions in the markets where MNACT is present.
While MCT' s Singapore properties will account for 51 per cent of the enlarged portfolio, this is expected to go down further as MPACT acquires more assets outside of the city-state.
MPACT is also expected to lower the proportion of its retail assets, which will stand at 46 per cent post merger, while adding more business parks and office assets.
While the merger may seem less than fair to MCT unitholders, the rationale is one that looks at the longer term. To put it simply, the merger could be the only way for MCT to diversify and grow.
This is critical as the Reit positions for the next chapter in a post-Covid world. Perhaps, the time may eventually come for the rest of Mapletree' s Reits to be merged too.
Also in the group' s umbrella are Mapletree Industrial Trust and Mapletree Logistics Trust - 2 sectors between which the line has become increasingly blurred.
While the strengths of MCT invariably invokes nostalgia and fond memories, the merger into MPACT represents the moving forward of the Reit into a new era as we leave Covid-19 behind. Auld Lang Syne, indeed.
invest8 ( Date: 03-Jan-2022 11:11) Posted:
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I am sure there will be investors think that way but Maybank can' t say for all investors. I, for one, would love to see SG companies venture out of SG because SG is too small. Why restrict ourselves in SG when the world is our oyster? Which SG company is doing busniess purely in SG yet has the scale of DBS, Singtel, Olam etc? Moreover, the nature of real estate businesses would make sense for the any Trust to look around the world for growth, given SG' s small size. It still has some time till finalisation of the merger, if the price correct ridiculously low for MCT, it may in itself a good time to take/add position.
CheeryVGoh ( Date: 03-Jan-2022 14:49) Posted:
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Mapletree Commercial Trust (MCT) may see waning investor interest after its merger bid for Mapletree North Asia Commercial Trust as it loses its Singapore pure-play status, Maybank said in a note Monday.
" MCT has executed well to achieve a strong following as a Singapore pureplay, but its Singapore NPI [net property income] is set to fall to c.53 percent with the addition of four overseas markets post-merger. This dilution may be viewed negatively by investors," Maybank said.
" With likely risk of investor following waning due to a diluted Singapore pure-play thesis, execution will remain key, and management of the new REIT will need to prove it can deliver on an expanded growth mandate," the investment bank added.
On Friday, the two trusts announced a plan to merge into Mapletree Pan-Asia Commercial Trust in a S$4.22 billion deal, creating one of Asia' s top-10 largest REITs with assets across Singapore, South Korea, China, Hong Kong and Japan.
Under the deal, which will be a trust scheme of arrangement, unitholders of MNACT will receive S$1.1949 for each unit, to be paid by either 0.5963 new MCT unit issued at S$2.0039, or a combination of 0.5009 MCT unit and S$0.1912 in cash, the trusts said Friday.
The pricing is a 7.6 percent premium to MNACT&rsquo s unit price of S$1.11 on 27 December, and a 14.4 percent premium to its one-month volume weighted average price (VWAP) of S$1.0449, the trusts said.
Maybank added, however, that the deal has strategic merits from increased diversification of assets under management (AUM), stronger growth in distribution per unit (DPU) and a potentially lower cost of capital.
" We see benefits from an enlarged AUM, as MCT has lagged peers in driving inorganic growth due to its Singapore-focused investment mandate and limited sponsor pipeline," Maybank said. " Diversification across core Asian markets should add stability and reduce concentration risk by assets (VivoCity) and tenancies."
Maybank rates Mapletree Commercial Trust at Buy with a S$2.35 price target.
Units of Mapletree Commercial Trust were down 4 percent at S$1.92 at 1:47 p.m. SGT.
personally super sianz. I got in at 2.34 pre-covid thinking that it was slowly surely crawl back up as it recovers to 2 dollars and then this news. Now 1.92 .... another stock to cold storage.