Dasin Retail Tr    Last:0.02   -

Dasin Retail Trust

" China-focused S-REITs are facing refinancing issues, says RHB Research in a July 21 report. &ldquo The stringent policy measures targeting the real estate sector (especially three red lines policy) has resulted so far in one S-REIT and one property trust facing issues upon refinancing &ndash Dasin Retail Trust and EC World REIT &ndash with both managing to roll over their debt only for a shorter time period. In addition, banks have imposed additional conditions to reduce their overall debt (25% repayment in ECW REIT&rsquo s case). Looking ahead, Sasseur REIT has its debt refinancing due next year, which will be keenly watched by the market, in our view. These are unlikely to impact China focused S-REITs with a strong sponsor backing like CapitaLand China Trust in our view,&rdquo RHB Research says."

https://www.theedgesingapore.com/capital/reits/capitaland-china-trusts-results-trigger-relook-capital-management
 

 

Just annouced another offshore loan get extended. Doubt it will fly like ECW since loan extension is quite routine for DRT. 

 

If this one gets debt extension like EC World will fly also.
This one NAV is $1.5107

 

https://dividendnewb.blogspot.com/2022/06/s-reit-with-100-exposure-to-china.html

 

Good Morning, good news, likely another major shareholder come onbaord, 50,000,000x$0.34(VWAP)=$17,000,000. How much you have put in? 

 

Good one marketuncle! Your prediction came true indeed wor....haha! DRT really managed to get extension...and the better news is 6mths extension from the bankers instead of the usual 3mths. Dasin' s lifespan got extended 6mths for another distribution to unit-holders....yeah!

marketuncle      ( Date: 21-Jun-2022 07:08) Posted: As expected, another 6 months extension. Look forwarded to the next distribution. :) marketuncle      ( Date: 20-Jun-2022 18:51) Posted: For past few extensions, there were no penalties for breaching loan covenants since its just some minority lender (s) vetoing the refinancing, so i presume the same for future extensions until the credit winter blows over in China.

 

As expected, another 6 months extension. Look forwarded to the next distribution. :)

marketuncle      ( Date: 20-Jun-2022 18:51) Posted: For past few extensions, there were no penalties for breaching loan covenants since its just some minority lender (s) vetoing the refinancing, so i presume the same for future extensions until the credit winter blows over in China. prophetjul      ( Date: 20-Jun-2022 17:36) Posted: Surely the debt extensions entail penalties. This will eat into their profit

 

For past few extensions, there were no penalties for breaching loan covenants since its just some minority lender (s) vetoing the refinancing, so i presume the same for future extensions until the credit winter blows over in China.

prophetjul      ( Date: 20-Jun-2022 17:36) Posted: Surely the debt extensions entail penalties. This will eat into their profit. marketuncle      ( Date: 20-Jun-2022 14:30) Posted: Don' t worry, most likely another 3 mth extension. Just look foward to the next 1/2 yearly distribution.

 

Surely the debt extensions entail penalties. This will eat into their profit.

marketuncle      ( Date: 20-Jun-2022 14:30) Posted: Don' t worry, most likely another 3 mth extension. Just look foward to the next 1/2 yearly distribution.

 

Some private funds are stil loading up DRT, and I presume they are not dumb. And even if DRT go into liquidation now, it' ll still be worth much more than current share price. 

 

Thanks marketuncle! 

marketuncle      ( Date: 20-Jun-2022 14:30) Posted: Don' t worry, most likely another 3 mth extension. Just look foward to the next 1/2 yearly distribution.

 

Don' t worry, most likely another 3 mth extension. Just look foward to the next 1/2 yearly distribution. 

 

Hmm,...the expiry of the 3mths extended syndicated loan is on 18th June 2022. Till 12pm today (20th June 2022), no announcement made again by management yet. Anyone has any further news on Dasin sales of mall or loan updates? Terrible leh, their SGX announcement always not timely or advanced.

 

At least some tiny fund still buying :P

https://shentonwire.net/2021/12/24/harvest-fund-management-funds-buy-more-dasin-retail-trust-units/

 

Yes, will be better off for both DRT and CLCT shareholders if the latter acquire them. 

Anyway, saw some ' ' good' ' news after reading recent AGM Q& A. If they do sell 2 two crown jewel malls, the transaction is considered material and require approval at EGM from minority shareholders. If the deal is not good (i.e. fire sale below value), shareholders can vote down the deal. Strangely, DRT cannot refinance just because a minority that accounted for less than 15% of the loan quantum stall the process. Their assets are good and performing, might be better off for share holders if DRT go into liquidation. The NAV of $1.4, even at huge hair cut, is way more than recent share price.

 

CapLand China T P/B = 0.729, Dasin Retail Trust P/B = 0.213 and they are listing mall to sell. Auditor standard can be slight different in Mall price, but cannot  be 3 times apart. Why Capland China not buying Dasin Retail Mall? If they sell equal value of Mall and buy Dasin Retail Mall, their profit will be 0.729/0.213 = 3.42, 342% profit.   

 

 

 

The dividend delay was due to covid, people movement. They can pay similar DPU if they still retain the malls, assuming the loan extension means current financing cost holds. Once they offload the 2 malls to reduce debt, the forward DPU will drop like a stone.

 

In Sep2021, Dividend payment was delay for a week, now they put up mall for sale. If no buyer, next dividend payment will also got problem.