Soilbuild Business Space REIT *Official* (SGX:SV3U)

[cronoficator]

yeah thinking hard now. hmmm....

Help you think better. I accumulated at 0.71. Now average price is 0.72. Low can get lower, but how much more until it makes no sense?

wale is stable, biggest anchors have long leases, no debt maturity till 2018. Even if price stagnant till 2018, you earn 15% from dividends at least.

Also:
http://internetfileserver.phillip.com.sg/POEMS/Stocks/Research/ResearchCoverage/SG/SoilbuildREIT20160418.pdf?utm_source=MG&utm_medium=EDM&utm_campaign=alwayson&utm_term=250416&utm_content=BR

 

[Initiatives]

anyone still eyeing this REIT?

I just read on their website that a writ of summon have been issued to technics offshore due to the Tenant’s default in payment ofrent and other outstanding sums.

Technics Offshore contribute 10% of their monthly gross rental income based on the information in their AGM presentation slide.

Anyone can enlighten on the situation?

 

[JW2015]

anyone still eyeing this REIT?

I just read on their website that a writ of summon have been issued to technics offshore due to the Tenant’s default in payment ofrent and other outstanding sums.

Technics Offshore contribute 10% of their monthly gross rental income based on the information in their AGM presentation slide.

Anyone can enlighten on the situation?

Aiya they collecting 18mth deposit, anything happen dbs pay

 

[lzydata]

anyone still eyeing this REIT?

I just read on their website that a writ of summon have been issued to technics offshore due to the Tenant’s default in payment ofrent and other outstanding sums.

Technics Offshore contribute 10% of their monthly gross rental income based on the information in their AGM presentation slide.

Anyone can enlighten on the situation?

WOW. This is the scenario lots of REIT investors concern themselves about but actually rarely happens - a major tenant not paying their rent.

 

[Asphodeli]

Aiya they collecting 18mth deposit, anything happen dbs pay

so fierce...collect 18 month deposit, then straightaway sue them for not paying rental, jsk...

 

[lzydata]

Aiya they collecting 18mth deposit, anything happen dbs pay

Indeed this is the reason for security deposits, Soilbuild REIT says they have $11.8m in a bank guarantee for that, but are also claiming $2.2m++ in arrears and costs.

http://infopub.sgx.com/FileOpen/SB ... Technics.ashx?App=Announcement&FileID=405483

It's a setback, 10% of your income, 8% by asset value, but Soilbuild REIT will survive. Can't say the same for Technics Oil and Gas...?

 

[Minx99]

those who experience 2007 crisis before would had seen this before
when major tenant go down, usually its very draggy and a lot of hidden costs
the bank will drag it out... not months but years later then give u the $$
the lawsuit will also take years....
and u still need to kick the defaulted tenant out, at the same time find new tenant... which is the hardest thing to do in a down economy

during GFC, reits felt more than 50% .... hard to find tenants and banks not renewing their debt... end up a lot of them hard to call for equity issue... even blue chips like CMT and CCT did rights issue to survive the GFC

i honestly think this is just the beginning, better check your portfolio of reits and what's the exposure to oil/gas related customers.....

This particular property is a waterfront property, with it's own jetty even, which make it unique and easier to rent out. A small consolation...

 

[JW2015]

so fierce...collect 18 month deposit, then straightaway sue them for not paying rental, jsk...

If TOG bankruptcy then that happens, else they will stay and pay, else they go where do business.
Even negative earning also must pay, else go eat black bean rice

Oil now 45$ should okay. If dip, I will buy hehehe

 

[Asphodeli]

This particular property is a waterfront property, with it's own jetty even, which make it unique and easier to rent out. A small consolation...

I think short term will dip, but should be fine, unless more rental issues pop up...maybe max downside 10%?

Sent from Sony D5833 using GAGT

 

[lzydata]

This particular property is a waterfront property, with it's own jetty even, which make it unique and easier to rent out. A small consolation...

Convert to residential possible?

 

[Asphodeli]

Convert to residential possible?

Can't. But can convert to F&B la. Waterfront dining if you don't mind the water pollution. Lol

Sent from Sony D5833 using GAGT

 

[JW2015]

I think short term will dip, but should be fine, unless more rental issues pop up...maybe max downside 10%?

Sent from Sony D5833 using GAGT

TOG has 17,000,000 in cash, still got money can pay

 

[Minx99]

Convert to residential possible?

I develop, you willing to buy? only 15 years lease left?

 

[birdbirdman]

At least still got 1.5 year deposit, can try to maintain distribution for one more year while they find new tenants.

 

[pinnacle_star]

I think the below still valid

stockbrokerplayspoker.blogspot.sg/2013/09/6-good-reasons-why-soildbuild-reit-is.html

 

[WeirdChemist]

dropping already today.

 

[Amigogo]

ya lo, dropping lo

 

[Tango62]

Soilbuild REIT: Issuance of Writ of Summons to Technics Oil & Gas
Soilbuild Business Space REIT (Soilbuild REIT) announced that it has filed a Writ of Summons and Statement of Claim in the High Court of Singapore against its tenant Technics Offshore Engineering Pte Ltd (TOE) at its 72 Loyang Way property, as well as against Technics Oil & Gas (Technics), which is the guarantor of TOE. Soilbuild REIT is claiming a sum of S$2.19m for TOE’s default in payment of rent and other outstanding sums. Technics, as the guarantor, had previously undertaken to pay the rent and all other sums payable under the lease agreement in the event that TOE defaults on payment. However, Technics has yet to furnish the security deposit payable in respect of the second year of the lease from the tenant. The silver lining is that Soilbuild REIT holds a bank guarantee amounting to S$11.8m, which is equivalent to 18 months of rent, as part of its security deposit. Soilbuild REIT had completed the acquisition of this property on 27 May 2015. Hence, management does not expect an immediate financial impact on its DPU for FY16. We keep our BUY rating and S$0.82 fair value for now, but will watch the developments closely. (Wong Teck Ching Andy)

OCBC Investment Research, 19 May 2016

 

[JW2015]

Impact analysis.

Before TOG default:
Last DPU = 0.1557
Annualized = 0.6228
Yield = 0.6228 / 0.700 = 8.8971%

After TOG default (less 10% income):
Annualized = 0.6228 - 10% = 0.5605
Yield = 0.5605 / 0.700 = 8.0071%

For next 1.5 year, yield is 8.8% (collected 18mth rental)
After 1.5 year (assume no tenant and not renting at 50% discount), yield is 8.0%

at 695 / 690 -> 8.86% / 9.02% using 0.6228 DPU.

cheers

 

[Minx99]

Convert to chalet or mini hotel..

It's amongst a messy industrial area with lots of heavy equipment, not the kind of place for a holiday or relaxing, I can reassure you