Cory Diary : Returning to MNACT (Updated)

Mapletree North Asia Commercial Trust

After significant sales in Aims Apac Reit, the portfolio needs some higher yield Reit to compensate for the dividend. One of the consideration is MNACT due to Maple Story ... and of-course the yield. The main concern is the potential rights issue. Nevertheless, no harm to go ahead to initiate some token purchases.

The Business update is out today so I thought is good to take a peek. The table below looks quite ugly. Not sure is an understatement. The reversion -34% on 44% of leases in Festival Walk. Not sure there is more contract focus on earning from sales which are in good recovery phase.

Do note the ICR is Trailing 12 months basis. However much lower rental reliefs of S$4.0 million granted to retail tenants at FW in 1Q FY21/22 compared to the corresponding period last year (1Q FY20/21: S$17.9 million )

Personally I feel MNACT is racing against time before the full impact of FW is felt such that DPU will continues in a reasonable manner with rising retail sales and timely acquisitions. There is also another equation which is the insurance proceed. There seems to be so many unknown and I am glad that currently my stake is small. After reviewing the information, probably to halt further increase till we have more concrete results. But I have no doubt the Manager is capable and doing the best they can.

(Updated 7/28: Decided to clear my small position ~cut loss and move to HST)

Cory

2021-0727

Articles in this Blog is personal take and educational purposes only. Reader should seek their own professional help when making financial decision and be responsible for their decision.