[hansamu]

https://www.theedgesingapore.com/capital...WeekdayEDM&utm_medium=email&utm_campaign=FREE

Just sharing  this article. 

Given Mapletree is a  strong sponsor,  the merger should do well in the long run. 

Buy /sell at your own risks. 

Caveat emptor.

[sgbuffett]

The analysts are just bean counting...some small.insignifant stuff.
I don't see anything special ...Neither do I see any big positive or negative.
.
Your biggest opportunity in reits is to buy cheap at low prices and lock on to long term yields.

Right now they are not compelling to buy ....just put them aside if you had bought at the pandemic lows.

As for this deal, I have Mapletree NAC which I bought in Dec.2020 for 94cts.  The performance has been unspectacular but decent for a REITs.

I will be opting for the maximum cash option as this is mathematically the best deal based on today's trading prices.

[sgbuffett]

I made one very costly mistake in the REITS sphere and that was not taking full advantage of the  First Reits rights issue at 20cts to scoop up a sizable position for sustainable.double digit yield.

The branded REITs like Mapletree is safe but will have low returns of 4+%. Just seem not even worth the effort.

[hansamu]

I made one very costly mistake in the REITS sphere and that was not taking full advantage of the  First Reits rights issue at 20cts to scoop up a sizable position for sustainable.double digit yield.

The branded REITs like Mapletree is safe but will have low returns of 4+%. Just seem not even worth the effort.

4% return is very good already.
So much better than FD rates at a miserly 0.5%.

[starbugs]

The merger will need 75% of MCT unitholders to vote yes. Mapletree parent will abstain from voting. Some MCT unitholders are lobbying others to vote no. The merger is not a done deal and may not succeed.

[sgbuffett]

The risk associated is not as low as what people think

On a pro forma basis, it expects MCT's adjusted net debt to increase to around 9.4 to 9.9 times Ebitda (earnings before interest, taxes, depreciation, and amortisation), from 8.2 times for the year ending March 2022. This is weaker than the 8.5 times downgrade threshold for MCT's Baa1 rating.

I estimate in a normal recession MCT can drop by 50%.
In a situation like Asian crisis or GFC it faces insolvency risks.

At current price it's not worth a buy.

[sgbuffett]

4% return is very good already.
So much better than FD rates at a miserly 0.5%.

Never buy for 4+% return because CPFSA gives you that.

[Migrant]

ESR merger with Cache first.
In ESR favour.