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I feel that this counter is undervalue and is giving out good dividends to shareholders. Any comments or views to share?
Hi,
Refering to the announement below, the last line states that "to return the net proceeds to unitholders during the third quarter of 2008". Does this means its going to give out the net sales from the AWPF to us shareholders?
Thanks
Extension of Short Term Debt Maturity
Allco (Singapore) Limited (?Manager? or ?Allco Singapore?), the manager of Allco Commercial Real
Estate Investment Trust (?Allco REIT?) (SGX: ALLC) is pleased to announce that Allco REIT has
received in-principle approval for the extension of the maturity date of S$550.0 million of debt from
31 July 2008 to 31 December 2009.
The Manager is currently reviewing the terms and conditions of the extension and will execute binding
documentation as soon as practicable.
In relation to the S$70.0 million of debt due to mature on 22 November 2008, the Manager expects to
repay this amount in full with the proceeds Allco REIT is likely to receive from Allco Wholesale
Property Fund (?AWPF?). As announced by the Manager on 9 March 2008, the fund manager of
AWPF has informed the Manager of its intention to sell the assets of AWPF and to return the net
proceeds to unitholders during the third quarter of 2008.
http://info.sgx.com/webcorannc.nsf/d21c0ed0b4a507cf482571b2003641d2/db165c61ff1e2c6f482574120036b8c2?OpenDocument
$550 million of dept is not a small sum, dead line Dec 31. 2009 (17 months) compare to $70 million which is affordable to pay off by Nov 22, (it is not from their kitty, but have to sell off two of their properties) read like with 2nd chance of opportunities, Allco Reits will have one hand tight and the other hand to work, as they has to sell their properties and have to live on borrow money to live on.
No big news
Basically loan payment date extended to Dec 2009
Slightly positive news actually
Agree to that 99%,...only thing left is must be nimble, cannot take your own sweet time u know?
In a bear trend, good news is hoped for, since many are waiting for that superb moment to dump.
This is what trend is about.
It is the reverse of a bull trend, where people "buy on the dips".
In the case of a bear trend, people "sell on the rallies".
Thus, to benefit the most, it is important to be correct in one's basic assumption strategy.
Selling off properties can lower down debt but also dividend yield. But I guess this is the best solution they can think of. Anyway just hope no more bad news.
With this type of market, no news is good news.
Good News - people profit take = shares drop
Bad News - people dump it = shares drop....
sianz....... right?
I guess the best news it can provide now is that it has already find buyers to sell some of its property to repay debt thus lower its "margin call" risk and improve its rating. Not vested here.
dont think its good news... halt is probably because of changing of directors. this type of market where to find gd news ?
Halt today. I hope its good news.
Thanks guys for the sharing :)
May i know where can i find out about the meanings of different ratings?
How many types of ratings are there?
The ratings are revised yearly during their FY end?
zhenxian, it's not shares (or units) of allcoreits that was derated but its "credit" rating.
When someone want to borrow money from a bank, the bank need to check borrower's credit rating. With good credit rating, it means lower risk of default so bank more willing to lend at more favourable rate to that borrower.
In fact, allco reit current credit rating is considered non-investment grade which would necessarily demand higher interest payment to offset the higher risk of default. Moreover, it is harder to borrow now under the current environment (credit crunch) as banks are becoming more selective who they want to lend to. With non-investment grade rating, it is definitely more difficult for allco reit to get funding, bearing in mind it's already highly geared.
this burger has high GEAR RATIO..meaning it borrows alot of $$ to acquire it's asset...and it need a gd rating from Standard&Poor inorder to secure loan to service it's debt !! :D
bad rating = no loan = high debt ratio :D hee....
May i know what is the meaning of down grading its share rating?
What are the impacts?
May be now its just sell on news but the future divy still looks good right? now its just cheaper to get the same amount of divy pay?
On Jan 18, i mentioned allco jus need to sell a few buildings and it would fine but it had fallen on deaf ears. Now, allco shareholders mus be worried sick hoping the liquidity squeeze won't turn it into another bear stearn.
Good luck to allco shareholders... allco's destiny is in your hand.
wow going sharply down today
hee....sound GOOD for me...another counter in SHORTING list :P
Downgrade again. This is bad for me.