$Dasin Retail Tr(CEDU.SI) $EC World Reit(BWCU.SI) $Sasseur Reit(CRPU.SI) $CapLand China T(AU8U.SI) $BHG Retail Reit(BMGU.SI)
Dasin Retail Trust
When we buy REIT, many people only look at the Gearing Ratio and DPU (dividend). Many information provided to us during the REIT earning report and annual report but we overlook it. We trust the management will handle well the REIT, so that we can relax and collect our dividend yearly. They are the experts in the property market. No! We need to check and assess them during their quarterly or semi- annually earning report. We need to check if the REIT is still healthy or debt ridden or badly manage or any other issue. Don’t forget it’s our hard earn money.
Below is the timeline how the Dasin Retail Trust management handle their debts and loan renewal.
IPO with 5 properties in 2017. Brought 2 shopping malls in July 2020.
Debt maturity profile (as at 31 March 2020) (reported on May 2020)
No major refinancing requirements until January 2021
The Trustee-Manager is in active negotiations with banks to renew the debts due in 2021.
S$1.1 mil (0.15% of the portfolio) – expire on 2020
S$511.5 mil (70.08% of the portfolio) – expire on 2021 (this is the early warning)
S$109.8 mil (15.05% of the portfolio) – expire on 2022
Debt maturity profile (as at 30 June 2020) (reported on Aug 2020)
No major refinancing requirements until January 2021
The Trustee-Manager is in active negotiations with banks to renew the debts due in 2021
S$506.5 mil (71.56% of the portfolio) – expire on 2021
S$108.8 mil (15.37% of the portfolio) – expire on 2022
COMPLETION OF ACQUISITION OF SHUNDE METRO MALL AND TANBEI METRO MALL (reported on 8 July 2020)
The total cost of the Acquisition is approximately S$344.1 million, comprising (a) the purchase consideration, representing cash outlay, payable under the Sale and Purchase Agreement for the Singapore Holdco of approximately S$65.1 million, (b) the repayment of existing indebtedness of approximately S$259.0 million, (c) the acquisition fee payable to the Trustee-Manager for the Acquisition of approximately S$2.4 million, and (d) the professional and other fees and expenses incurred or to be incurred by Dasin Retail Trust in connection with the Acquisition of approximately S$17.6 million. (Make use of acquisition to repay large amount of debts, 2nd warning)
Debt maturity profile (as at 31 Dec. 2020) (reported on Feb 2021)
The Trustee-Manager is in active negotiations with the banks to successfully complete the extension of the loan relating to the initial portfolio and Shiqi Metro Mall due on 18 July 2021. (Since March 2020, the management fail to negotiations with banks to renew the debts, only able to extend the loan)
S$499.6 mil (52.66% of the portfolio) – expire on 2021
S$238.9 mil (25.18% of the portfolio) – expire on 2022
Debt maturity profile (as at 30 June 2021) (reported on Aug 2021)
The Trustee-Manager is in active negotiations with the banks to secure the refinancing of both the offshore facilities and the onshore facilities due on 19 December, as well as to jointly coordinate the refinancing of the offshore facilities with that of the Doumen facilities.
S$501.9 mil (53.38% of the portfolio) – expire on 2021
S$240.6 mil (25.5% of the portfolio) – expire on 2022
Further extended by approximately 5 months from 18 July 2021 to 19 December 2021.
Another further extended by 3 months from 20 December 2021 to 20 March 2022.
(This is 3rd warning)
Debt maturity profile (as at 31 Dec. 2021) (reported on Feb 2022)
The Trustee-Manager is in active negotiations with the banks to secure the refinancing of both the offshore facilities and the onshore facilities due on 20 March 2022
S$742.2 mil (77.35% of the portfolio) – expire on 2022
Another further extended: The lenders of both the Onshore and Offshore Facilities have granted an extension of 3 months from 19 March 2022 to 19 June 2022
An extension of three months from 19 March 2022 to allow the Trust to explore the proposal in the non-binding memorandum of understanding with Wuhu Yuanche Bisheng Investment Center on the potential divestment of Shiqi Metro Mall and Xiaolan Metro Mall (the “Proposed Divestment”). (top 2 revenue malls) (reported on April 2022)
Portfolio FY2021 base of revenue
Shiqi Metro Mall 20.7% (property since IPO in 2017)
Xiaolan Metro Mall 21.2% (property since IPO in 2017)
Ocean Metro Mall 14.3% (property since IPO in 2017 )
Dasin E-Colour 2.8% (property since IPO in 2017)
Doumen Metro Mall 19.6% (property since IPO in 2017)
Shunde Metro Mall 19.5%
Tanbei Metro Mall 1.9%
Auditor's Comments of Accounts on April 2022
Going concern basis of preparation of financial statements (Use of estimates and judgements)
MINUTES OF THE 5th ANNUAL GENERAL MEETING held on 26 APRIL 2022
Qn: Is there a need to divest two properties to the buyout funds? With SHIQI Mall being valued at RMB 2.8B (SGD 596m), taking a haircut of 20% which will amount to RMB 2.24B (SGD 476m), is this still not enough with the remaining outstanding to be satisfied by rights/forgo of dividends/existing cash?
Reply: The MOU was entered into with the aim of providing for the long-term interests of Unitholders and an action for the sustainability of the Trust. (same as no reply)
In addition, the offshore syndicated term loan facility of up to the equivalent of $132.9 million relating to acquisition of Shunde Metro Mall and Tanbei Metro Mall is due on 15 July 2022, and the offshore syndicated term loan facility relating to acquisition of Doumen Metro Mall of up to equivalent of S$105.7 million is due on 19 September 2022. The Trustee-Manager will be working closely with the banks to secure the refinancing of these facilities.
Summary: If Dasin Retail Trust management will to divest Shiqi Metro Mall and Xiaolan Metro Mall, this trust is as good as gone case liao. There are few warning signals since the earnings report release on May 2020. High debts maturity concentration while the management not able to negotiation for refinancing or a new loan. The management only able to extend when the loans are due.
Pls DYODD
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