EC World Reit *Official* (SGX: BWCU)

[dappermen]

Looks like the manager has misled investors in their previous announcement about finalising the refinancing of the debt!

how do u know?

 

[prophetjul]

In fact in the last announcement they informed that they were finalising the refinancing and should be completed before the maturity dates! They have misled the investors!

"The Manager is in the final stage of negotiation for the refinancing of the term loans due in 2022 and will update the investing community of developments."

https://ecwreit.listedcompany.com/newsroom/20220512_174048_BWCU_NUQWAG80FAGXRXYP.2.pdf
"At this juncture, the Manager expects that the refinancing exercise will be completed prior to the maturity dates of the term loans."

https://ecwreit.listedcompany.com/newsroom/20220512_174048_BWCU_NUQWAG80FAGXRXYP.3.pdf

 

[prophetjul]

how do u know?

Do you not read reports?

 

[dappermen]

no, EC not in my radar
even if there are media/soc media reported, i do NOT trust FULLY

 

[prophetjul]

no, EC not in my radar
even if there are media/soc media reported, i do NOT trust FULLY

This is from their own reports.

 

[dappermen]

erm, then EC is not very clever then.......they in their own lead u guys to suspect somethin fishy....

 

[Andrew833]

Think they mention they will refinance before the loans expire, which is still true since they have extended the maturity dates for the ones expiring in May. However, the clause to repay 25% of the principal is worrying... For brothers/sisters still hodling, may want to reduce exposure depending on your risk appetite because if credit crunch comes, likely it will fall like dominoes. I have held this for 4 years and it has actually paid well but I feel this current situation is too high risk for me to stomach

ECW’s manager ominously announced that sponsor Forchn Holdings Group Co will ensure that at least 25% of the principal ammount of its outstanding offshore facilities are repaid by Dec 31, 2022 whether by acquisition of asset(s) of EC World REIT and/or its subsidiaries or otherwise. This means that -from the REIT’s perspective - a property is likely to be divested to raise the monies to repay 25% of the offshore loan.

For those still holding EC World REIT, should know this. Could be the next Dasin.

 

[Andrew833]

erm, then EC is not very clever then.......they in their own lead u guys to suspect somethin fishy....

Under SGX and MAS, a listed company has to be transparent.

 

[dappermen]

raise the monies to repay 25% of the offshore loan

is there no other methods???

issue equity? PO?

 

[Andrew833]

is there no other methods???

issue equity? PO?

Before the debts mature, should have refinance. The lousy management wait till the very last day lol.
The debts is too huge to use PO or PP, even if small amount also not good to use PO/ PP to finance the debts.

 

[soneat]

ECW’s manager ominously announced that sponsor Forchn Holdings Group Co will ensure that at least 25% of the principal ammount of its outstanding offshore facilities are repaid by Dec 31, 2022 whether by acquisition of asset(s) of EC World REIT and/or its subsidiaries or otherwise. This means that -from the REIT’s perspective - a property is likely to be divested to raise the monies to repay 25% of the offshore loan.

For those still holding EC World REIT, should know this. Could be the next Dasin.

Indeed.

For holders of this REIT, they better read throught the past announcement and decide if they still trust this REIT and want to remain vested.

 

[dappermen]

i dont dare to assume, Andrew

i felt some investors extremely luv PO, so sorry and some other forms of financing

in the world of Finance, even if it is a Reit, there are many forms/methods to gather Funds

also, which is why many co.s/fi institutions can even use Creative accounting!!!!!!!! no matter how transparent SGX/MAS need u to be , i m sorry.......... creative pp will use creative way to achieve it ( "creative" in a negative connotation , we dont need to be auditors or accountant to knw the reality right?)

 

[Andrew833]

i dont dare to assume, Andrew

i felt some investors extremely luv PO, so sorry and some other forms of financing

in the world of Finance, even if it is a Reit, there are many forms/methods to gather Funds

also, which is why many co.s/fi institutions can even use Creative accounting!!!!!!!! no matter how transparent SGX/MAS need u to be , i m sorry.......... creative pp will use creative way to achieve it ( "creative" in a negative connotation , we dont need to be auditors or accountant to knw the reality right?)

I think you really need to learn how to read the Earning result report. Every things are inside. Some like to hide things in small fine print but if you read carefully, I don't see any reason you miss them.

You also think wrongly on PO.
If a good REIT issue PO to raise funds for new property, it's normal and also mean good news cos shareholders can add more shares into their portfolio.
If a REIT issue PO to raise funds not for new property, it's a red flag

 

[dappermen]

yes, a red flag but doesnt mean 0 will subscribe

If a REIT issue PO to raise funds not for new property, it's a red flag

just like surely there are a pool of smart investors holding onto this Stk
https://www.sgx.com/securities/equities/BWCU

and 1 of the Smartest among all:

is a stk that pp chase after too : Ifast!

how smart! those who bought ifast stks, do u qn them? even though they sold too

Main Shareholders	Type	Holdings Date	Percent of shares held	Number of shares held	Change	Turnover rating
Forchn Holdings Group Co., Ltd.	Corporation	31 Mar 2022	43.7931%	354,653,140	346,736	LOW
China Cinda Asset Management Co., Ltd.	Corporation	28 Mar 2022	10.0670%	81,526,700	0	LOW
Fosun International Holdings, Ltd.	Corporation	28 Mar 2022	9.1334%	73,966,000	0	LOW
Dazhong Capital (Hong Kong) Co Ltd	Corporation	28 Mar 2022	5.3772%	43,546,300	0	-
IFast Financial Pte Ltd.	Corporation	28 Mar 2022	0.6850%	5,547,100	859,800	LOW

 

[waxqube]

I think whether people will subscribe for the PO or not is besides the point. If they have to raise equity to pay debt, this means likely the situation is already very bad and the shares will be issued at a big discount to NAV which will destroy value. Probably it's more worth to sell properties to pay the debt instead (if valuations still hold, which btw, is hugely dependent on sponsor due to the master leases). Anyway, we still don't know what will happen for the onshore loans which is much bigger than the one they just extended. The good thing is, auditors have flagged this and the manager generally has been transparent about this. At least there is some warning. So it's up to investor to evaluate this. Hopefully they can refinance in time which will solve all problems.

 

[sohguanh]

I think you really need to learn how to read the Earning result report. Every things are inside. Some like to hide things in small fine print but if you read carefully, I don't see any reason you miss them.

You also think wrongly on PO.
If a good REIT issue PO to raise funds for new property, it's normal and also mean good news cos shareholders can add more shares into their portfolio.
If a REIT issue PO to raise funds not for new property, it's a red flag

What if they combine say the PO is
1. raise funds acquire new property
2. raise funds to pay down coming matured debt
The PO which is a single exercise is for 2 issues then it is a red flag or not ?

 

[dappermen]

To me, they can find a gd excuse to raise PO
Who will account fully for that amt to be used totally on acquiring? How would we b sure that eventually the acquired amt will be the exact same amt??!

soh guan ,
I doubt they dare to issue pO for matured debt
They will wrap and find a grand excuse for it! Who will dare to
When i mentioned earlier raised pO- i didnt even dare to say Ec will announce it is for that use, if i m the Reit? I will guarantee all it will be put into good use

 

[Andrew833]

What if they combine say the PO is
1. raise funds acquire new property
2. raise funds to pay down coming matured debt
The PO which is a single exercise is for 2 issues then it is a red flag or not ?

Depend. If there is debts issue, yes, it’s a red flag. If it’s not debts issue, just to use the excess amount to pay off as debts, I think it’s fine.
Need to read their announcement carefully.

 

[Andrew833]

I think whether people will subscribe for the PO or not is besides the point. If they have to raise equity to pay debt, this means likely the situation is already very bad and the shares will be issued at a big discount to NAV which will destroy value. Probably it's more worth to sell properties to pay the debt instead (if valuations still hold, which btw, is hugely dependent on sponsor due to the master leases). Anyway, we still don't know what will happen for the onshore loans which is much bigger than the one they just extended. The good thing is, auditors have flagged this and the manager generally has been transparent about this. At least there is some warning. So it's up to investor to evaluate this. Hopefully they can refinance in time which will solve all problems.

You are good, hope you process in your investing journey

 

[soneat]

Indeed.

For holders of this REIT, they better read throught the past announcement and decide if they still trust this REIT and want to remain vested.

Just a word of caution for folks still vested in this counter. Read through this announcement and dyodd

https://links.sgx.com/1.0.0/corpora...d1aae30fcd3e98f1d9a354f9a59a064fab25d494b16ca