MacArthurCook reit

hahahhaa.. who knows for sure if it will hv a problem refinancing. chances are, it won\'t but the cost of financing will be higher. that\'s conventional wisdom with regards to a lot of Reits. specific to Macarthurcook, hv you read its statement ? it\'s quite enlightening. good luck info.sgx.com/webcoranncatth.nsf/VwAttach...ct08.pdf?openelement

clever analysis by \'investor\' at Share Junction on Dec 12 ---- Now that Cambridge Reit has finalised the re-financing of its 390m debt, at 6.6 % interest cost (at a lower rate than what the mkt was expecting), the reduction to its annual dividend is a mere 0.9 cents less, there should be cause for optimism for MacCookIreit. Like Cambridge, Maccook has a approx gearing of 39%, with an outstanding loan of approx 220m. Assuming that the interest cost increased by 3 %, additional financing cost would be 3 % of $220m = approx $6.6m. This works out to approx $1.65m extra interest cost per qtr. As MacCook paid out $6.13m for last qtr (Q209), the net effect would be to reduce dividend payout to $4.48m. This means that dividend would be cut from 2.35cents to approx 1.7 cents, still giving an annualised yield of 29 % based on the closing price of 0.23. THe main concern in the mkt was whether MacCook would be able to re-financing its debt, and the success of Cambridge should ally this concern. Secondly, the assumption of an increase of an extra 3 % in interest cost is a conjecture on my part - Investors should do well to do their own analysis. My calculations above are assumptions and I hope that I did not calculate the figures incorrectly ! Vested. Not a call to buy/sell.

it\'s \'investor\' again fr Sharejunction: Dec 15 ;;;;;;;; If you look at the Q3 results of all the reits, the majority reported increase in dividends. The exceptions were Cambridge Reit (due to payout of trustee mgmt fees being paid 100 % in cash, as compared to previous qtr), as well as FraserComm (formerly Allco Reit), due to their financing cost. Like I said, one of the risks to reits is their financing cost, the majority of their income should be quite stable in the medium term as most of the tenancies are already locked in. In fact, some of the reits in the office space, like Suntec will still experience POSITIVE rental reversion, ie their rentals will go up, as the old rentals were at a very low rate (aprox $5 psf), whereas, right now, even with a 30 % drop in office space, the new rental rate will still be HOGHER than $5.00 psf. In calculating the 29 % yield of MacArthurcook I reit, I am using a dividend rate of 1.7 per qtr, which is ALREADY down from the Q3 rate of 2.35 cents, ie I am assuming a 38 % drop in dividend ! At current price of 0.23 cents, the stock has drop from its IPO price of 1.20 - a 80 % drop in price ! Assuming that the projected rate of 1.7 cents is wrong, lets take it down to half of that, ie 0.85 cents per qtr. The yield would still be approx 15 % ! The RISK to this stock would be their inability to re-finance their loan (And that is why Cambridge\'s refinancing gives me optimism). And yes, I did bought some on Friday at 0.23 cents. (My average cost is probably 0.245 cents). In the current bear mkt, yes do be careful - anything can happen - So please do your own homework carefully. Not a call to buy/sell.

Friday, November 28, 2008 MI-REIT - BT MI-Reit to refinance $201m of debt by Jan Disclosure comes after Moody\'s cuts rating, with possible further downgrade MACARTHURCOOK Industrial Reit (MI-Reit) said yesterday it aims to refinance some $201 million of debt due in April 2009 by the end of January next year. MI-Reit announced the plan a day after Moody\'s Investors Service downgraded the Reit\'s corporate family rating to Ba2 and said it remains for a possible further downgrade. \'The rating remains on review for downgrade primarily to reflect ongoing concerns surrounding MI-Reit\'s significant refinancing risk, with 91 per cent of its total debts, or $201 million, falling due in April 2009 amid very challenging credit markets conditions,\' said Kathleen Lee, Moody\'s lead analyst for the trust. She also said the trust has an outstanding put- and-call option on plot 4A of International Business Park, which if completed by end-December 2009 on fully debt-financed terms, will result in a \'material weakening of (the Reit\'s) credit metrics\'. \'There also remains considerable uncertainty as to how this acquisition will be funded if the put option is exercised by the vendor,\' Ms Lee said. In response, MI-Reit said yesterday it expects to finalise negotiations to refinance the bulk of its debt maturities by the end of January 2009. And as for the new acquisition, finance will be sought via negotiations with banks, MI-Reit told BT. The planned $91 million acquisition will lift the trust\'s gearing from around 39 per cent now to about 47 per cent. Moody\'s said it also downgraded MI-Reit because it feels the Reit is not likely to meet the scale and diversity targets that were built into its original rating. The Reit now shows high levels of asset and tenant concentration, more consistent with a Ba2 rating, Moody\'s said. MI-Reit, one of the smallest industrial Reits in Singapore, owns 21 properties worth a total of $559.9 million. But being small does not mean the trust is riskier, MI-Reit told BT yesterday. MI-Reit shares lost 0.5 cent to close at a one-year low of 25.5 cents yesterday. The stock has lost 76.8 per cent this year.

intelligent posting by \'investor\' at sharejunction on Jan 10: MacArthurCook I Reit has gone up from a recent consolidation low of 0.25 cents to yesterday\'s closing price of 0.315. Based on last qtr div payout of 2.35 cents, the stock is trading at a historical yield of 29.9 %. Most of the reits have shown improvement in share price, and Capitacomm\'s re-financing of their debt at approx 4 % - 4.4 % has given the mkt the confidence that re-financing should not be a problem for the rest of the other reits. Having said that, Saizen did disappoint the mkt by going for a rights issue - the most dilutive option for a reit. I did a stress test on MacArthurCook Reit. If the current interest cost of approx 2.7 % goes up to 7 %, their div will drop to 1.45 cents per qtr, giving an annualised yield of 18.39%, and if the interest cost goes up to 9 %, their div will drop to 1.03 cents per qtr, giving a yield of 13.04 %. THe assumption above is that all other factors remain the same, same tenancy rentals, etc. ALso, the company has mentioned that they are in advance negotiation to re-finance their debt (see Q209 corporate announcement in SGX) and that this should be settled in Jan 09. Let us hope that shareholdets are not disappointed, and that the company does not do what Saizen did. Vested. Not a call to buy/sell.

MacArthurcook Reit has surged 2.5 cents (that\'s 11%) this morning after announcing Q3 results. Distribution per unit = 2.35 cents! Annualised = 9.4 cents. That means yield annualised is 36.9% Very positive statement: \"Barring any further unforeseen events or continued and significant deterioration in the external economic environment, the Manager expects MI-REIT to deliver a DPU that is in line with its recent performance for the balance of the current financial year.\" I interpret that to mean the yield of 36.9% has a high chance of materialising. Like that, hor, the stock is a very low-risk and high gain one......