Post Reply
701-720 of 846
Anyone knows when are we subscribing the Preferential Offering ?
Yes, for sure,... even if it' s to a small quantum,... because when ALL the units from the Private Placement (PP) and from the Preferential Offering (PO) are floated together in the exchange on October 12, 2017, Thursday, there will surely be a certain amount of dilution due to the additional units. Mkt will always selldown on impulse, and following that, price could recover quickly,... not too sure after that.
We can always capture that moment of selldown on October 12 to buy-in at better prices then,... but of course, we will not be getting the Advanced Dividend anymore.
calvinlooi ( Date: 14-Sep-2017 15:22) Posted:
| The share price should go down? |
|
The share price should go down?
Finally, the PP has been announced and concluded,... the unit issue price for the PP = $1.175.
And the unit issue price for the Preferential Offering (PO) = $1.145.
Ann' t this morning as below :-
" The issue price per New Unit under the Private Placement has been fixed at the top end of the range at S$1.175 per New Unit (the " Private Placement Issue Price" ) as agreed between the Manager and the Joint Global Co-ordinators and Bookrunners, following a book-building process and the issue price per New Unit under the Preferential Offering has been fixed at S$1.145 per New Unit (the " Preferential Offering Issue Price" )."
NOt mush meat for us retail investors !!!! After all the exercises done,.... the unit price will definitely drop below $1.170,.... assuming the TERP model in place though the units here are not to be renounced,...
Better sell and buyback later. Forego that Advanced Dividend,....
Any opinions ??
Well,... as of now, one thing' s for sure - the manager will have to do AT LEAST the PP. And this, by itself, would already be causing dilution and price drops. MLT will not do the whole financing by debt alone, there must be equities involved to finance this acq,...
When do you think will they make the ann' t ?
Tq noovva. I do appreciate your sharing of your knowledge on Listing Rules with me. They need to announce their plans before the 13th next week, which is the day of the EGM to get unitholders' approval, so that the voting process can be carried out together for the two resolutions. Hence, if MLT has any plans for unitholders like us, they shld announce by these few days already,...
It' s very good to hear that MLT would like us to participate too,...
nooovva ( Date: 06-Sep-2017 23:03) Posted:
| I agree if pricing is good, there will be demand for PP. But this is almost $700m if I recall. It is a huge amount. The listing rules do not allow more than 20% of shares to be PP unless unitholders' specific approval is sought. I do not see any reso relating to that yet so it is premature to say so. I believe Mapletree is cognizant of wanting to allow unitholders to participate. |
|
I agree if pricing is good, there will be demand for PP. But this is almost $700m if I recall. It is a huge amount. The listing rules do not allow more than 20% of shares to be PP unless unitholders' specific approval is sought. I do not see any reso relating to that yet so it is premature to say so. I believe Mapletree is cognizant of wanting to allow unitholders to participate.
Price retracted today,... signs of the Pref Offering coming ??
Actually, if a ctr is good, they will be many takers even for a large private placement, but if you' re talking abt like, say,... Sabana REIT, then still, there will be takers, but surely at very deep discounts,... I think financial institutions are queueing-up to take this PP to be announced soon.
Furthermore,... look at all of their ann' t back on Aug 28th... all seemed to be pointing directly to a PP only,... Even the Whitewash Resolution is actually saying that if the sponsor really does not want to take-up any PP, then there will be following repercussions for everybody, and we have waived our rights to many things.
I only hoped that MLT will give some consideration to us,... I understand that an RI takes a lot of time to do and more work involved, but they can move the dates fwd and investors will cooperate,....
nooovva ( Date: 04-Sep-2017 22:48) Posted:
| The manager has not decided how the EFR will be structured. May have both private placement and public offering. I think it is too big to be swallowed by private placements alone and there are listing rules against large private placements unless unitholders' specific consent is sought and approved. |
|
The manager has not decided how the EFR will be structured. May have both private placement and public offering. I think it is too big to be swallowed by private placements alone and there are listing rules against large private placements unless unitholders' specific consent is sought and approved.
Reviving this thread,.... for the acquisition of the the Tsing Yi warehouse, retail investors have no opportunity to participate in the equity-raising exercise - this is not really good. Decisions have been made for :-
(i) the issuance of new Units following a Private Placement (as defined in the circular to Unitholders of MLT dated 28 August 2017) (the " Circular" ) such that MIPL&rsquo s percentage unitholding in MLT would decrease as MIPL will not be participating in the Private Placement
(ii) the subscription by MIPL and its subsidiaries (the " Relevant Entities" ) of new Units in connection with the Preferential Offering (as defined in the Circular) in accordance with their pro rata entitlement, and pursuant to the Undertaking (as defined in the Circular), the subscription of excess Units in the Preferential Offering so that if the Relevant Entities are fully allotted the excess Units, MIPL will maintain its percentage unitholding in MLT at the level immediately prior to the Private Placement
The eg set out for the exercise above was at 1.15 per unit,... Price doesnot seemed to be dropping,.... yet,... but perhaps could do so after having gotten the EGM approval on Sept 13,... 1.23 is way too rich now.
Mapletree Logistics Trust (MLT SP): BUY
Market Cap: US$1,869m | Average Daily Value: US$2.83m
Last Traded Price: S$1.06 Price Target: S$1.15 (Upside 8.6%) (Prev S$1.15)
Analyst
Derek TAN +65 6682 3716 [email protected]
Mervin SONG CFA +65 6682 3715 [email protected]
Singapore Research Team [email protected]
Acquisitions remain a main driver for growth
- DPU of 1.67 Scts in line.
- Organic growth remains modest acquisitions to drive earnings in FY18F
- Gearing remains optimal at 38%
- Asset monetisation could take centre stage
Maintain BUY, TP S$1.15. Mapletree Logistics Trust (MLT) remains attractive for its steady DPU growth profile of c.2-3% driven by an actively managed portfolio and regular asset acquisitions. We see MLT remaining on a growth path. BUY maintained, yield of 7.0-7.1% is attractive for a strong quality name.
Acquisitions and developments to drive growth The issuance of S$250m perpetual securities in May 2016 @ 4.18% has enabled MLT to lock in attractive long-term funding for the REIT. Since then, it has deployed close to S$313m into acquisitions at yields ranging 7.1%-9.9%. With gearing already at 38%, we see the REIT looking to monetise assets and re-deploying proceeds into acquisitions as a key focus area in FY17-18F. That said, MLT continues to enjoy a myriad of acquisition opportunities from its Sponsor, and third parties in Australia, Korea, and China.
3Q17 results in line. Top line and net property income were up 7.1% and 7.7% y-o-y respectively. Higher revenues were mainly driven by acquisitions. Distributable income was 5.8% higher while DPU was flat mainly due to higher interest incurred on the issuance of close to S$250m worth of perpetual securities.
Valuation:
We maintain our BUY call and TP of S$1.15. The stock offers a total potential return of 16% (9% share price upside, 7% yield).
Key Risks to Our View:
Acquisitions ramping up faster than expected. A faster-than-projected acquisition pace or a better-than-expected outlook for the Singapore warehouse market will translate to positive adjustments to our earnings estimates, and re-rate the stock higher.
https://researchwise.dbsvresearch.com/ResearchManager/DownloadResearch.aspx?E=ceicakfdhjg
15 things I learned from Mapletree Logistics Trust FY2016 AGM
By:
Adam Wong / fifthperson.com
Mapletree Logistics Trust (SGX: M44U) (MLT) is a logistics REIT with 118 properties in eight countries &ndash Singapore, Malaysia, Vietnam, Australia, Japan, Hong Kong, South Korea, and China. The properties include logistics parks, distribution centres, food and cold storage, and industrial warehouses.
As you can see from the chart above, Singapore&rsquo s industrial production has been especially weak the past 12 months. I attended MLT&rsquo s annual general meeting to discover how the REIT performed over its last financial year and how the management planned to navigate the tough economic climate.
Here are 15 things I learned from Mapletree Logistics Trust&rsquo s FY2016 AGM:
- Gross revenue and net property income (NPI) rose 6.0% and 4.8% respectively driven mainly by growth in Hong Kong. However, this was offset by weaker results from Singapore as a number of single user assets (SUAs) are being converted to multi-tenanted buildings (MTBs). Distribution per unit (DPU) fell 1.6% to 7.38 cents. In its most recent Q1 2017 results, MLT has managed to maintain its DPU of 1.85 cents for unitholders.
- MLT&rsquo s current distribution yield (based on FY2015 DPU) is 6.83%. The current yield is near its historical high yield of 7.10% in 2008. Its historical low yield is 5.13% in 2006.
- MLT&rsquo s net asset value (NAV) per unit fell marginally from $1.03 to $1.02 year-on-year.NAV per unit has since fallen further to $1.00 in MLT&rsquo s Q1 release. With MLT&rsquo s share price at $1.08 (as at 27 July 2016), the REIT is currently trading above book value.
- Portfolio value grew from $4.63 billion to $5.07 billion year-on-year &ndash largely from fair value gains from Hong Kong properties. Singapore still comprised the largest proportion of portfolio value at 34.4%, followed by Hong Kong (22.5%) and Japan (20.4%). These three countries also make the largest contributions to MLT&rsquo s gross revenue.
- MLT&rsquo s gearing ratio is 39.6% at financial year end. This has since been reduced to 35.7% due to the issuance of S$250 million perpetual securities in May 2016. The REIT&rsquo s debt maturity profile is also well-staggered with a maximum of 17% of debt maturing in a single year over the next eight years. About 84% of debt is hedged or drawn in fixed rates.
- MLT&rsquo s portfolio occupancy rate is 96.2% which has since fallen further to 95.4% in its Q1 release. Singapore has the lowest occupancy levels at 92.9% though, as the CEO pointed out, this number is still higher than the overall Singapore warehouse occupancy rate of 90.4%. MLT&rsquo s tenant base is also well-diversified it has 519 customers and the top ten only contribute between 1.4% to 4.3% of gross revenue.
- Weighted average lease expiry (WALE) is 4.5 years. Lease expiry profile is well-staggered with the majority of leases expiring in FY2021 and beyond. The weighted average landlease is 42 years with the majority (54.4%) of land leases expiring in 31-60 years. Only 4.7% of land leases expire in the next 20 years and 28.6% of MLT&rsquo s properties are actually freehold (none in Singapore, of course). This gives a measure of long-term stability to MLT&rsquo s property portfolio.
- One investor made a point that although gross revenue and NPI have increased, unitholders ultimately look at DPU &ndash and MLT&rsquo s was decreasing. He then asked the management if they had any strategy to navigate the current difficult conditions. MLT chairman Paul Ma agreed that current conditions are tough especially in Singapore and that the board has taken steps to cushion the slowdown. He mentioned that MLT has diversified its portfolio and without doing so, results could have been much worse. He used Hong Kong as an example where demand for warehouse space is still strong and MLT has seen positive rental reversions. Besides diversification, the REIT is also looking at divesting older assets that no longer fit the portfolio criteria and embarked on redevelopments for assets like 5B Toh Guan Road East and 76 Pioneer Road.
- MLT CEO Ng Kiat followed up on the chairman&rsquo s account and highlighted that MLT is one of the older REITs in Singapore (ten years old) and as such have older assets that need to be renewed/restructured. She mentioned that a number of SUAs in Singapore are up for renewal and the REIT is in the process of converting them into MTBs. When a tenant leaves an SUA, its occupancy rate immediately drops to zero. When the SUA is finally converted to an MTB, it takes time to find new tenants to ramp up occupancy levels. In the case of MLT, this SUA-to-MTB conversion happens to take place during a tough economic period. The CEO asked for patience during this transitional phase and that results won&rsquo t be immediate but unitholders will see the efforts pay off down the line.
- A unitholder enquired about the pros and cons of converting SUAs to MTBs. The CEO explained that a property loses overall net lettable area as the common areas can no longer be leased and expenses increase as the REIT now has to manage shared services like security. The positive is MLT is able to charge higher rents which, in most cases, is more than enough to offset the higher costs. MTBs also allow the REIT to diversify its tenant base.
- One unitholder asked the board on the reasons why they decided to enter the Australian market. The CEO replied that Australia&rsquo s market is highly scalable and properties there enjoy long WALEs with annual rental escalations of 2.75-3%. Australia is also part of the board&rsquo s strategy of diversifying MLT&rsquo s portfolio.
- A unitholder by the name of Mr. Chan expressed his concern if any of MLT&rsquo s properties housed chemical or hazardous materials as the REIT continues to expand into foreign countries. He gave the example of the chemical explosion in Tianjin, China which killed 173 people and ranted for a few minutes about the danger to MLT&rsquo s reputation and business if such an incident was to occur. The CEO calmly replied that only 3% of MLT&rsquo s tenant base is in the chemicals industry. Beyond that, MLT has tenancy agreements that require tenants to comply with all regulatory requirements and safety checks. In less &lsquo well-governed&rsquo countries, MLT also sends a surveillance team to check on tenants at least once a month. The answer wasn&rsquo t enough to satisfy our unitholder however and he carried on with his rant when he regained the microphone. At the end, the chairman firmly stated that MLT&rsquo s properties are not exposed to hazardous chemicals like Tianjin and the REIT is very serious about the safety and security of its properties.
- Another unitholder questioned how MLT made a net foreign exchange loss of 18.8 million for the financial year. CFO Wong Mei Lian explained that MLT usually borrows in foreign currency as a natural hedge when acquiring assets overseas and gains/losses occur when forex rates move. She reassured the unitholder that the losses are unrealized and non-cash in nature which will not affect DPU. The chairman carried on with his explanation that REITs have to hedge their foreign exposure to stabilize its distributions to unitholders. On the contrary, if a REIT doesn&rsquo t do so, unitholders will be even more unhappy with higher fluctuations in DPU.
- One unitholder asked if Japan&rsquo s negative interest rate policy (NIRP) affected the REIT&rsquo s Japanese assets. The CFO replied that MLT has made small interest savings in the unhedged portion of Yen loans, but the amount is small ($1 million) as Japanese interest rates were already extremely low to begin with. The CEO added that NIRP meant that investors are now chasing harder for yields which have made their Japanese assets more valuable. This might open some divestment opportunities but the management will wait and see on this. Compared to NIRP, the REIT is more concerned about the upcoming supply of logistics/warehousing space in Tokyo.
- Finally, a unitholder asked why MLT is doing so well in Hong Kong, unlike Singapore. The CEO said there is a limited supply of warehouse space in Hong Kong as landowners are converting warehouses to commercial and residential spaces. This has kept demand high which is why MLT has seen positive rental reversions and higher asset revaluations in Hong Kong. To add, the land is freehold in Hong Kong. On the other hand, Singapore has 1.4 million square feet of logistics/warehouse space coming on-stream. 70% of this is already pre-committed but CEO Ng Kiat conceded that it is still a large amount of supply. With the slowing economy and shorter leases, MLT has challenges to face in Singapore.
* This article first appeared on fifthperson.com
Now ichuing up to 1.05.
paul1688 ( Date: 29-Apr-2016 23:41) Posted:
| NOTICE IS HEREBY GIVEN that the Transfer Books and Register of Unitholders of Mapletree Logistics Trust (?MLT?) will be closed at 5.00 pm on Tuesday 10 May 2016 for the purpose of determining unitholders? entitlements to MLT?s distribution. MLT has announced a distribution of 1.80 cents per unit for the period from 1 January 2016 to 31 March 2016. The distribution of 1.80 cents per unit comprises a taxable income component of 0.86 cents per unit, a tax-exempt income component of 0.52 cents per unit, other gains component of 0.06 cents per unit and a capital component of 0.36 cents per unit. |
|
NOTICE IS HEREBY GIVEN that the Transfer Books and Register of Unitholders of Mapletree Logistics Trust (?MLT?) will be closed at 5.00 pm on Tuesday 10 May 2016 for the purpose of determining unitholders? entitlements to MLT?s distribution. MLT has announced a distribution of 1.80 cents per unit for the period from 1 January 2016 to 31 March 2016. The distribution of 1.80 cents per unit comprises a taxable income component of 0.86 cents per unit, a tax-exempt income component of 0.52 cents per unit, other gains component of 0.06 cents per unit and a capital component of 0.36 cents per unit.
still agreeing with you
so which one is good? share with us
tch77_pt75 ( Date: 28-Dec-2015 11:06) Posted:
This counter will be going south in no time with the Fed increasing in interest rate- who want a counter when the share price has been under performancing even when the asset value has increase by 9 folds... Classical case of win-lose situation for retail investors.
Just my personal view :(
tch77_pt75 ( Date: 07-Dec-2015 14:16) Posted:
| Maintaining my views on this stock.. |
|
|
|
This counter will be going south in no time with the Fed increasing in interest rate- who want a counter when the share price has been under performancing even when the asset value has increase by 9 folds... Classical case of win-lose situation for retail investors.
Just my personal view :(
tch77_pt75 ( Date: 07-Dec-2015 14:16) Posted:
Maintaining my views on this stock...
tch77_pt75 ( Date: 22-Nov-2015 14:18) Posted:
| More downside if Fed raise interest rate |
|
|
|
yes.. all reits will move down to dirt cheap price...
tch77_pt75 ( Date: 07-Dec-2015 14:16) Posted:
Maintaining my views on this stock...
tch77_pt75 ( Date: 22-Nov-2015 14:18) Posted:
| More downside if Fed raise interest rate |
|
|
|
