InvestIdeas

Substantial shareholder UBS AG has reduced its stake in Macarthurcook Industrial REIT from 13.18% to 12.86%.

MacarthurCook Investment Managers (Asia) Limited, the manager of MacarthurCook Industrial Reit (MI-Reit), said eight of its properties have been revalued at S$212.5 million on Nov 15, 2008, up 2.1 per cent from S$210.4 million a year ago.

The revaluations have increased MI-Reit's total portfolio value to S$559.9 million on Nov 15, 2008.

The upward revision primarily comes from their Asahi Ohmiya warehouse in Japan.

February 5, 2009, 7.09 pm (Singapore time)

Moody's downgrades MI-Reit
By KALPANA RASHIWALA

Moody's Investors Service on Thursday downgraded Macarthurcook Industrial Reit's (MI-Reit's) corporate family rating from Ba2 to B1.

The rating continues to be on review for possible downgrade, Moody's said.

'The ratings downgrade reflects MI-REIT's heightened liquidity pressure as the refinancing of its S$201 million loan maturing in April 2009 remains unresolved,' Moody's vice-president and senior analyst Kathleen Lee said.

The trust had announced on Nov 26, 2008, that it expects to finalise negotiations on refinancing its debt maturities by the end of January 2009, though Moody's notes that the trust is still negotiating with its incumbent lenders.

'However, the terms and conditions - as well as the timeframe to complete the negotiation - are still uncertain for the time being,' Ms Lee added.

The downgrade also reflects the fact that in addition to the debt maturities due in April, MI-REIT has unfunded financing needs of S$91 million to complete a put and call option over 4A International Business Park by fourth quarter 2009. 'This presents an additional funding challenge facing the trust under the prevailing weak credit environment,' the ratings agency noted.

Does anyone here hold shares of the above mentioned trust?

Regarding its recently announced plan to refinance via equity financing, I find it quite unfair for ordinary/ minority shareholders to agree to this proposed plan. Especially when major interested parties get lower price placement shares at a attractive price as compared to the 2 for 1 rights issue being offered to shareholders. In addition to NAV dilution of S$0.51 per share.

In light of the several capital refinancing exercise successfully completed by other REITs listed in Singapore, none have adopted such a unfair transaction, in my own opinion. However I feel that most local shareholders do not really care to attend EGM or read into the upcoming transactions.

Can anyone who is tracking this counter kindly share your insights?

I hope this document maybe of some value to unitholders of MI-REIT:
http://mavericksut.hostei.com/MacArthurCook

Not vested. From Phillips:-

MacarthurCook Industrial REIT – Results (Lee Kok Joo)
Recommendation: SELL
Previous close: S$0.365
Fair value: S$0.22

• MacarthurCook Industrial REIT (MIREIT) reported gross revenue for 2QFY10 of $11.8 million (-4.5% y-o-y, +7.8% q-o-q)), net property income was $9.1 million (-2.7% y-o-y, -2.8% q-o-q). Distributable income was $5.2 million (-26.2% y-o-y, +28.4% q-o-q). DPU for the quarter was 1.93 cents (-17.5% y-o-y, +28.4 q-o-q).

MIREIT also announced a series of recapitalization measures.

Why would Cambridge approve to such dilution of nta?
wondering what they are up to...

Either they are trying to vote for the management or go against the mgmt.
But I believe that Cambridge would become a interested party and thus their vote would not count, thus im guessing they like go against MI-reit.

Vote out the mgmt?
hold egm to cancel the transaction?

We'll see in the coming week. All the above represent my personal opinion only. Rolling Eyes If the deal goes thru, unitholders will be screwed. why will Cambridge screw themselves?

One of the reasons why I am fearful of S Reit chips - Refinancing issues. Very few REITs here are truly able to repay the loans...

Generally, I rather go after a high yielding company (5-7%) as opposed to a REIT (10%). The former dividends are sustainable since its based on a free and operating cashflow while the latter operating cashflow is sustained by huge debts ie their properties are financed by debts. Eventually a day will come when they have to sell it to repay the loans or refinance at a higher interest.

First quarter 2010 results for AIMS AMP CAP INDUSTRIAL REIT:

Key Points
* DPU of 0.5376 cents for 1Q 2010.
* Distribution to Unitholders of S$7.9 million for the quarter.
* Gross revenue was up 19.4% period-on-period to S$15.6 million in 4QFY2010, reflecting the full quarterly rental income contribution from 1A IBP which was acquired in 3QFY2010 and 80 days rental income contribution from the four AMP Capital properties which were acquired in 4QFY2010.
* Net property income was up 28.2% period-on-period to S$11.9 million in 4QFY10 and up 8.9% year-on-year to S$40.1 million in FY2010.
* The amount available for distribution was up by 57.9% period-on-period to S$7.9 million in 4QFY2010 and was slightly down by 4.6% year-on-year to S$22.3 million for FY2010.
* Portfolio occupancy is 96.0%, which compares favourably with the Singapore industrial average of 91.2%.
* Aggregate leverage of 28.9% as at 31 March 2010.
* A robust net asset value (NAV) of 31 cents per unit as at 31 March 2010.
* Property portfolio of 26 properties with an independently assessed total value of S$635.25 million.


http://sreitinvestor.blogspot.com/p/dat ... lease.html

anyone vested in this counter? Care to share some views?

SINGAPORE (Dow Jones)--AIMS AMP Capital Industrial REIT Management Ltd. (BU5U.SG) said Monday that it plans to acquire a warehouse and logistics facility in Singapore from AMP Capital Business Space REIT for S$161 million.

The property, located within Singapore's Jurong industrial estate, will be financed through a combination of debt and equity financing, AIM AMP Capital said in a statement.

Under the financing plan, the real estate investment trust said that it has secured a new debt facility of S$280 million from Standard Chartered Bank, United Overseas Bank Ltd. and the Commonwealth Bank of Australia Ltd.

Apart from using S$97 million toward financing the acquisition of the Singapore property, AIMS AMP said that S$175 million will be used toward refinancing its local debt that matures in December 2012.

The company said that it is also planning a rights issue to raise S$79.6 million in gross proceeds.

AIMS AMP is proposing to issue 513.3 million new units on the basis of seven rights units for every 20 existing units held at an issue price of S$0.155 each.

Standard Chartered Securities (Singapore) Pte. Ltd. is the sole financial adviser.