MacArthurCook reit

For the June quarter (“1Q2009”) a distribution of 2.35 cents per unit was paid. Barring any unforeseen events, it is expected that the distribution for the September 2008 (“2Q2009”) and December 2008 quarters (“3Q2009”) will be in line with the recent distribution and the March 2009 distribution (“4Q2009”) will be higher should the amount available for distribution retained in previous quarters not be required. 6. Half Yearly Results The half yearly results for the period to 30 September 2008 will be released on 7 November 2008. The MacarthurCook Group and its related entities have demonstrated their confidence in MI-REIT by increasing their ownership of the REIT from 13.16% of units on issue as at 30 September 2008 to 14.73% as at Friday 17 October 2008. source: info.sgx.com/webcoranncatth.nsf/VwAttach...tion.pdf?openelement

business times: MACARTHURCOOK Industrial Reit (MI-Reit) yesterday posted net property income of $9.3 million for its second quarter ended Sept 30, 2008 - up 58 per cent from a year earlier. The improvement was largely due to rental income from nine properties MI-Reit acquired in the past financial year. Distribution to unitholders rose 27 per cent quarter on quarter to $6.1 million in Q2. This translates to a 26 per cent increase in distribution per unit (DPU) to 2.35 cents. Taking DPU in Q1 and Q2 into account, MI-Reit\'s annualised yield is 19.2 per cent, based on its closing unit price of 49 cents on Sept 30. \'Given the rising worries over a global recession and fears in credit markets that have intensified, our immediate priority is to actively manage MI-Reit\'s assets to maintain our high tenant retention and occupancy levels,\' said Craig Dunstan, CEO and executive director of MI-Reit manager MacarthurCook Investment Managers (Asia). All 21 properties in MI-Reit\'s portfolio were fully leased at Sept 30. Only 2.7 per cent of its rental income will be subject to lease expiry in FY2009 and FY2010. Tenant diversification improved. At Sept 30, no single tenant accounted for more than 20.3 per cent of rental income. Deteriorating market conditions and refinancing risks facing MI-Reit led Moody\'s Investors Service to place its Baa3 corporate family rating on review for a possible downgrade last month. At Sept 30, MI-Reit had an aggregate leverage ratio of 39.6 per cent. Its medium-term target gearing is in the range of 40-45 per cent. \'The manager is currently advanced in negotiations in relation to a new facility that will refinance an existing facility of $220.8 million due in April 2009 and also to provide funding for the settlement of Plot 4A, International Business Park in December 2009,\' said MI-Reit. MI-Reit signed a deal for the business park in August last year. The Reit did not announce any acquisitions in Q2. \'In the near term, organic growth in the portfolio will drive returns,\' said Mr Dunstan. \'However, we expect to resume our active acquisition growth strategy once capital market conditions improve.\' For the rest of the financial year, the MI-Reit manager expects returns to be in line with recent performance. Units of MI-Reit closed 0.5 cents higher at 39 cents yesterday.

hello , everyone. i have a question. for FRASERS COMMERCIAL TRUST, it is priced at $0.25 , its NAV is at $1.20 and its yield is at 18pct. is this a real bargain? even if the price of its property has dropeped to a third of current value, including future distributions (DPU), it still should worth at least $0.40. is it that this trust is facing financing problem; e.g. it cannot renew loan or very high interest rate for renewal. please enlighten me. thank you.

for FRASERS COMMERCIAL TRUST, it is priced at $0.25 , its NAV is at $1.20 and its yield is at 18pct. maybe, this trust is highly leveraged. 50 pct in total liability and 50 pct in equity. e.g. if its NAV is $1.20, a unit has property exposure $2.40. if its property value came down by 60%, a unit lost $0.96, its NAV will drops to $0.24. is this correct? thank you

kim eng securities today: FCOT is the cheapest REIT in the S-REIT space on P/Book basis. ♦ Implicit backing of F&N reduces re-financing risk. ♦ A potential privatization candidate for F&N, we see a possible takeout price at $0.42, implying 82% upside. Analysis: 1) Back in July 2008, F&N bought a 17.7% stake in Allco Commercial REIT (Allco) and 100% of Allco’s REIT manager, paying an aggregate purchase price of S$180m. 2) The S$104m price tag for 17.7% in Allco translated to a price of $0.83/unit and was at a 42% discount to Allco’s Net Asset Value, valuing the whole REIT at S$588m. 3) F&N’s game-plan was to use Allco REIT as its commercial REIT vehicle and eventually inject its pipeline assets (Alexandra Point, Alexandra Technopark and Valley Point) into Allco. Allco was subsequently renamed Fraser Commercial Trust (FCOT). 4) Today, amid a full blown financial crisis, and company-specific refinancing issues, FCOT’s share price has plunged to $0.23, implying P/NAV of 0.18x and a market capitalization of $164m. Distribution yield is in excess of 20%. F&N is currently sitting on a paper loss of $75m based on the last trade price. 5) In the short term, FCOT faced the daunting task of re-financing S$460m of short termT loan. Given the implicit backing of F&N, we believe the company would be able to resolve this, abeit with a higher cost of funds. 6) F&N currently faces a challenging situation: given the huge discount to Net Asset Value (78%) and high distribution yield, any asset acquisition would not be accretive and also involve massive unit earnings dilution. The designated pipeline assets for the REIT would have to be deferred infinitely in the current environment. 7) One potential solution would be for F&N to privatize the FCOT to resolve the deadlock. Post privatisation, F&N would have greater flexibility to carry out an asset restructuring exercise, getting rid of under-performing assets and re-packaging the REIT for a future re-listing when market conditions improve. Under current market conditions, a privatization offer would be a cheap way of acquiring physical assets. While we are cautious of industrial REITs in general given a supply glut in a slowing economy and potential tenancy risk, we believe FCOT’s low valuation has priced in much of the negatives and has limited downside risk at this level. We also see it as a potential M&A target. 9) Assuming a takeout price of 0.35x P/Book, that will translate to a target of $0.42, 82% upside from current level. Buy.

hello, for MacArthurCook REIT, 91 pct of its loan is less than 1 year. will it has problem in renewing its loan? can anybody please enligthen me? thank you.