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I fully agree with you. Even a 20% discount of the property value, shareholders will earn double the current share price.
However, to the management, its equivalent to losing their job. Losing a SGD 250k- SGD 500k job is painful and they might not be able to find such a well paying job in China
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(10-01-2023, 10:03 AM)weijian Wrote: It seems like the end of the road is very near.
APPOINTMENT OF ADVISOR TO CONDUCT INDEPENDENT BUSINESS REVIEW
The primarily purpose of the IBR is to assess and validate the financial position of the Group. These findings will be used as a basis to progress loan extension discussions with the various lenders of the Offshore Facility 1, Onshore Facility 1, Offshore Facility 2, Offshore Facility 3 as announced on 2 January 2023
https://links.sgx.com/FileOpen/DASINRT-A...eID=743603
Update of Status of Extension (2nd Jan 2023)
The Trustee-Manager wishes to update that discussions with lenders for the above facilities to extend
the loan maturity date to 30 April 2023 are progressing, albeit protracted.
https://links.sgx.com/FileOpen/DASINRT-E...eID=743083
Is the huge $1+ NAV all dud
"You are right not because the world agrees or disagrees with you, rather you are right because your facts & reasoning are right."
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10-01-2023, 10:23 PM
(This post was last modified: 10-01-2023, 10:24 PM by CY09.)
Unsure about this.
The current portfoilo on book is SGD $2.2 billion and equity of SGD 945 million. There has been no revalaution done by Dasin yet.
Based on the other distressed developers and property companies, we have seen properties forcesold at 50-90% of their reported value. Hence, there is likely some residual value left for sharheolders if a major sale occurs; but it is definite that the SGD $1 NAV wont hold. The market currently prices it as SGD $0.26 and I believe this is likely what remains of the asset value post strip off (if it is to happen).
However, as it continues to drag out, I feel the equity value will fall as the mgmt needs to pay themselves for (poorly) running the REIT. Hence, further dilution may occur
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There is a good old saying that goes like this "When looking at the balance sheet, you can be sure that the asset is as fully valued as it can be, but the liability may not".
So when we look at impairment of the asset, it probably doesn't provide enough margin of safety. An assessment of the liability (or expecting unexpected off-balance liabilities to appear) is required.
The previous Eagle Hospitality Trust debacle have given observers a very good (FOC) lesson that was dearly paid by its equity holders. I am not insinuating anything similar here but trying to connect the broad lessons as a learner of how markets really work.
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