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hmm..... 
Mapletree North Asia Commercial Trust, Mapletree Commercial Trust simultaneously request for trading halt
Mapletree North Asia Commercial Trust (MNACT) and Mapletree Commercial Trust (MCT) have simultaneously requested for a trading halt on Tuesday morning (Dec 28), pending undisclosed announcement.The Edge Singapore has reached out to both REITs for more information regarding the announcement. MNACT has declined to comment.
Both REITs' assets consist of mainly retail, office and commercial properties. MNACT' s portfolio consists of properties across China, Hong Kong, Japan and South Korea, while MCT' s portfolio comprises five properties in Singapore.
In contrast, the assets of the other two Mapletree REITs &mdash Mapletree Industrial Trust and Mapletree Logistics Trust mainly consist of warehouses and factories, as well as data centres.
There have been a number of REITs that have merged over the past few years &mdash the most notable mergers include the merger of OUE Commercial REIT and OUE Hospitality Trust' s merger in 2019 as well as the merger of CapitaLand Mall Trust and CapitaLand Commercial Trust last year.
As at Sept 30, the net asset value (NAV) per unit for MNACT was $1.26 while the NAV per unit for MCT was $1.72. They last traded at $1.11 and $2.
Even before the lease is going nearer to the end of the lease expiration, REITs will have already divest the property long ago while there is still value in it
I have never heard of any REIT holding the property until the end of the lease term
Maybe you can share with us which REIT(s) did that?
I have never heard of any REIT holding the property until the end of the lease term
Maybe you can share with us which REIT(s) did that?
superstartup ( Date: 28-Dec-2021 13:06) Posted:
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Their NAV went down from 1.4x to 1.2x as a result whereas MCT only lost 0.03 to NAV from 1.75 to 1.72.
last month when Logistic Trust halted, the announcement were almost immediate today the announcement still not out so I can only assume its something much more significant....
last month when Logistic Trust halted, the announcement were almost immediate today the announcement still not out so I can only assume its something much more significant....
pkli899 ( Date: 28-Dec-2021 15:17) Posted:
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Didn' t know much about them.
Only know they have Festive Walk which was badly damaged during the riots.
And prior to their recent acquisitions, Festive Walk contributes a big chunk of their revenue.
Overall, not as good as MCT, to me.
JustOnce ( Date: 28-Dec-2021 15:08) Posted:
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just read North Asia Trust' s annual report for financial year ended March 2021 looks like they took a big hit with the " Net change in fair value of investment properties" and ended the financial year with a loss of SGD265m loss attributable to unitholders? Did I read this correctly? (source: https://www.mapletreenorthasiacommercialtrust.com/Investor-Relations/Publications/Annual-Reports.aspx)
Does not looks like a good thing to be merging with....
Does not looks like a good thing to be merging with....
seems like the announcement will only be out after market close today. wonder is this planned or due to mapletree north asia commercial share price last few days running up
分 久 必 合 合 久 必 分
(Few thousand years old saying. )
Else how Management justify its capability?
(joking la. But then look at local SGX scence. The thousand years old saying stays.)
JustOnce ( Date: 28-Dec-2021 13:59) Posted:
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Thanks. I also think merger is likely given that both reits are halted. given both are commercial reits, not sure why need to be separate in the first place? I am guessing there should be some synergies and expense saving in consolidating the operations. hopefully it works out well for MCT haha selfish thinking :P
Well, MTNAC main asset is Festive Walk Mall over at Hong Kong.
Not freehold. Lease expiring is like 26 more years.
Hence, MTNAC these days keep trying to buy freehold properties.
Will not be surprised if the 2 reits merged.
Can dilute MTNAC lease expiry problem too.
[Imagine in another 26 years, overnight, MTNAC asset value dropped by more than 50%.
Also, in term of valuation, the property value will drop drastically nearer the end of the lease expiration. This day can come quite fast due to valuation methodology. Those familiar with Bala' s Table (valuation) will know what I mean.]
Not freehold. Lease expiring is like 26 more years.
Hence, MTNAC these days keep trying to buy freehold properties.
Will not be surprised if the 2 reits merged.
Can dilute MTNAC lease expiry problem too.
[Imagine in another 26 years, overnight, MTNAC asset value dropped by more than 50%.
Also, in term of valuation, the property value will drop drastically nearer the end of the lease expiration. This day can come quite fast due to valuation methodology. Those familiar with Bala' s Table (valuation) will know what I mean.]
JustOnce ( Date: 28-Dec-2021 12:53) Posted:
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Size matter but still need to see how they do it.
Anyway, just my speculation only, end up may not be the case.
Anyway, just my speculation only, end up may not be the case.
JustOnce ( Date: 28-Dec-2021 12:53) Posted:
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is it a good or bad thing if merging?
pkli899 ( Date: 28-Dec-2021 12:44) Posted:
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Got chance
pkli899 ( Date: 28-Dec-2021 12:44) Posted:
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My guess, merger of 2 reits.
Mapletree Logistic Trust was halted last month for equity fund raising and acquisition - wondering if the same is happening to Commercial Trust.
they halted both Mapletree Commercial as well as Mapletree North Asia Commercial.... one can only guess the halt has to do with both of them...
wow ok any insight from any informed members here?
MakeChanges ( Date: 28-Dec-2021 07:57) Posted:
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TRADING HALT !
If you just have enough money to invest in 2 office REITs LONG TERM. just take MCT, CICT......
Singapore office REIT sector still ' attractive' mixed commercial S-REITs preferred: DBS
DBS Group Research analysts Rachel Tan and Derek Tan remain positive on the Singapore office REITs sector as they see that the reopening of the country&rsquo s economy will continue to be a key theme in 2022. The Singapore government, which is looking at having more employees return to the office in 2022, is also another plus for the sector.
The Singapore office REITs sector, which is currently trading at 0.9 times price-to-net asset value (P/NAV) on the whole, is deemed &ldquo attractive&rdquo to the analysts.
Despite the work from home (WFH) default for the most of 2021, Singapore office rents registered a stronger recovery. This is seen in vacancy spaces at key buildings &ndash namely Asia Square Tower and CapitaSpring &ndash close to being fully committed, note the analysts.
In addition, further delays in the completion of large new incoming supply such as Guoco Midtown and Central Boulevard Tower have provided a longer runway for office rents to recover, they add.
Guoco Midtown is slated to be completed in FY2023, while Central Boulevard Tower is pegged to be completed in FY2024.
&ldquo The increasing &lsquo flight to quality&rsquo trend shows that good quality prime office buildings are still desired and will likely lead the recovery come 2022,&rdquo write the analysts from DBS.
As 2022 marks the third year since the Covid-19 pandemic began, the analysts foresee that the adoption of hybrid working arrangements could increase, as companies increasingly adopt a more core, as well as flexible approach. This approach could lend more agility during times of uncertainty, say the analysts.
&ldquo With limited new supply completions, based on leases coming due for the overall sector in 2022&ndash 2024, we estimate that up to 20% of potential downsizing from expiring leases in FY2022-FY2024 of up to 800,000 sq ft of shadow space is still manageable, in line with historical demand trends,&rdquo they write in a Dec 13 report.
Within the sector, the analysts have expressed their preference for mixed commercial Singapore REITs (S-REITs) as they offer a stronger growth trajectory of 8% to 20% in FY2022.
Mixed commercial S-REITs are likely to ride on the retail recovery following the low base in FY2021. They will also be a beneficiary from the return-to-office exodus.
Of these S-REITs, Suntec REIT, CapitaLand Integrated Commercial Trust (CICT) and Mapletree Commercial Trust (MCT), are the analysts&rsquo top picks as they offer the strongest distribution per unit (DPU) growth in the FY2022 compared to their peers.
Retail S-REITs on the rise for FY2022
DBS Group Research analysts Geraldine Wong and Derek Tan say that Singapore' s retail sector is at an inflection point, with more positives in 2022 as consumer confidence remains high and tourists return, with top picks Frasers Centrepoint Trust (FCT), CapitaLand Integrated Commercial Trust (CICT), Lendlease Global Comm REIT (LREIT) and CapitaLand China Trust (CLCT) for overseas retail maintained.According to Wong and Tan, retail value (ex-F& B) has recovered to approximately 92% of normalised levels despite periodic " lockdowns" as local spending continued to outweigh the " lost tourist dollar" .
" We believe that the pivot to more online spending will not be a significant disruptor in Singapore, as we have seen landlords and tenants embark on an omni-channel strategy with brick-and-mortar stores complementing online offerings," say the analysts. " With brighter economic prospects driving wage increases coupled with tourists returning into our shores, we see the retail sector on a stronger footing come 2022."
Additionally, Wong and Tan foresee more catalysts ahead, with stronger traffic at malls to drive further upward trajectory in tenant sales, and retail S-REITs to post an approximate 5.6% jump in distributions.
" With Singapore' s ' endemic approach' towards the COVID-19 pandemic, we believe that the risk from the Omnicron virus is unlikely to lead to a fullblown domestic lockdown. We believe that it is only a matter of time that border reopening and further domestic relaxation will restart sometime in 1QFY2022," say the analysts.
Vaccinated travel lanes with partner countries encompass approximately 57% of historical inbound markets and will be a lift to tourist retail sales in FY2022 as well. In addition, the potential relaxation of restrictions on " atrium sales" will be a positive earnings surprise for selected landlords&ndash FCT, MCT, and CICT, which contribute between 3-5% of revenues, which have been " lost" since 2020.
Sector valuations are currently trading below book at 0.97 times close to its five-year historical mean of 1.01 times, where forward FY2022 yields are compelling at 5.6% for defensive big cap names FCT and CICT, according to the analysts.
" We see lower downside risk of rental rebates in 2022 and conservatively priced in 0.5 months in our view, from 1-1.5 months this year," say Wong and Tan.
Wong and Tan maintain top sector picks FCT on resilient tenant sales, CICT, and LREIT on border reopening and domestic relaxation play. " We also pick CLCT amongst foreign retail plays for attractive valuations at a 0.8x book and a rare 8% forward yield," the analysts added.