Eagle Hospitality Trust

[Ray168]

The selling seems not over after IPO ?
Is it because of this potential disaster from Queen Mary ship/hotel ?


 
Hope to have comments from buddies here .
 
(Just vested at 0.655 )

I have been trying to figure out the same. I held off from investing at higher prices due to this concern but the share price has dropped from 78 cents to 66 cents or 15%. What piques my interest at this level is not just the high forecast dividend yield (close to 10%) but also the fact that the Queen Mary was valued at USD 159MM out of a total portfolio valuation of USD 1,270MM or 12.5% of the portfolio. Hence , the share price decline assumes that the Queen Mary is worth zero IF you assume that the rest of the assets are still valued correctly. However, it is weird that this hospitality trust would IPO at 78 cents when the book value is 88 cents. To me, that sets off alarm bells. Why would the sponsors be so keen to offload these assets that they are willing to offer a significant discount to book ? It may be that this has now fallen into value territory but I am still scratching my head to get a better grip on what could be wrong with the business model to account for the IPO discount and poor share performance particularly given that the share price of the ARA hospitality trust has been reasonably stable

I read from somewhere before , the sponsor actually wanted to IPO it at a higher price but reduced it  to 78 cents owing to bad market sentiment during that time .
The queen Mary ship/hotel also comprise of a big piece of land next to the ship , so assume if the ship is totally worthless , the land next to it should worth something .
This enticed me to commit a  small position into EAGLE HT today . Hope I was not wrong in making this decision.

Substantial shareholder Tong Jinquan sold 10 million shares at US$0.65.
That probably explains the drop of share price. But as to why he sold, it's anybody's guess.
He still holds close to 5% stake. The share price may not have seen its bottom if the selling continues.

Just sharing. SSH selling info.

They are SSHs , got their shares thru private placements but sold after IPO below IPO price , any reason ?

Don't know leh ... but these news may explain a little more. 

EAGLE Hospitality Trust (EHT)’s initial public offering (IPO) saw less than half of its stapled securities subscribed under the public offer, resulting in the joint bookrunners and underwriters having to take up the bulk of the allotment of unsubscribed stapled securities.

https://www.businesstimes.com.sg/compani...volatility

[/url]https://www.businesstimes.com.sg/companies-markets/hot-stock-eagle-hospitality-trust-falls-below-ipo-price-in-heavy-trading

[url=https://www.businesstimes.com.sg/companies-markets/hot-stock-eagle-hospitality-trust-falls-below-ipo-price-in-heavy-trading]Underwriters run road?

(not vested)

[cfa]

What had convinced me into buying  this counter :

1) Share  was sold down from 0.78 to 0.655 which was 16% from IPO price. This should be more than enough to compensate the total loss of  value of The queen Mary asset ( If this do happen eventually ).

2)Singapore, 5 September 2019 – Eagle Hospitality REIT Management Pte. Ltd., as manager (the “REIT Manager”) of Eagle Hospitality Real Estate Investment Trust (“EH-REIT”), and Eagle Hospitality Business Trust Management Pte. Ltd., as trustee-manager (the “Trustee-Manager”, collectively with the REIT Manager, the “Managers”) of Eagle Hospitality Business Trust (“EH-BT”), is pleased to announce that Eagle Hospitality Trust (“EHT”) is to be included as a constituent stock of the Global Property Research (“GPR”) / Asia Pacific Real Estate Association (“APREA”) Composite Index and the GPR/APREA Composite REIT Index. The constituent changes will become effective at the start of trading on 23 September 2019

3)Eagle’s lease agreements as structured as master leases with the tenants using a combination of fixed and variable rents:

• Based on the Projection Year 2020, Fixed Rent (FR) accounts for 66.0% of rental income
  
  
• The remaining 34.0% of its rental income is pegged to the Gross Operating Revenue (GOR) and Gross Operating Profit (GOP):
  
  • 71.3% of Variable Rent (VR) based on gross operating revenue
    

This gives the trust some form of stability, downside protection and is less exposed to fluctuation and seasonal profitability. At the same time, this gives upside to investors during high growth periods.

[b] [/b]4)Domestic guests: About 91.9% of its guests are domestic travellers - ie, US, Canada and Mexico residents. In other words, Eagle Hospitality Trust thrives mainly on a booming US economy (and is not susceptible to fluctuations in travellers from China, for example).

[valueinvestor]

I read from somewhere before , the sponsor actually wanted to IPO it at a higher price but reduced it  to 78 cents owing to bad market sentiment during that time .
The queen Mary ship/hotel also comprise of a big piece of land next to the ship , so assume if the ship is totally worthless , the land next to it should worth something .
This enticed me to commit a  small position into EAGLE HT today . Hope I was not wrong in making this decision.

Substantial shareholder Tong Jinquan sold 10 million shares at US$0.65.
That probably explains the drop of share price. But as to why he sold, it's anybody's guess.
He still holds close to 5% stake. The share price may not have seen its bottom if the selling continues.

Tong Jinquan has many investments in REITs and other property investments in China . Most of his investments are underperformed . He need to sell some to meet his financial commitment ?
Howard Wu , he may need to sell some units to raise cash for his daily operating expenses , because all fees to be paid to the managers  by units not cash.

[cfa]

See the projected 2020 profit.

[corydorus]

Ship Trusts end badly. So what so special for a liner in property reit that it won't ?

[valueinvestor]

Ship = Depreciating asset = FH property ?
Agreement with leasee = Agreement with sponsor ?
Single leasee = multiple hotel guess/customers ?

[Stocker]

Ship Trusts end badly. So what so special for a liner in property reit that it won't ?

Ship has 20 to 30 years of commercial value whereas FH land has much longer value for sure .

[valueinvestor]

Selling seems over , this eagle going to fly high soon ?

[Shiyi]

The selling seems not over after IPO ?
Is it because of this potential disaster from Queen Mary ship/hotel ?


 
Hope to have comments from buddies here .
 
(Just vested at 0.655 )

I have been trying to figure out the same. I held off from investing at higher prices due to this concern but the share price has dropped from 78 cents to 66 cents or 15%. What piques my interest at this level is not just the high forecast dividend yield (close to 10%) but also the fact that the Queen Mary was valued at USD 159MM out of a total portfolio valuation of USD 1,270MM or 12.5% of the portfolio. Hence , the share price decline assumes that the Queen Mary is worth zero IF you assume that the rest of the assets are still valued correctly. However, it is weird that this hospitality trust would IPO at 78 cents when the book value is 88 cents. To me, that sets off alarm bells. Why would the sponsors be so keen to offload these assets that they are willing to offer a significant discount to book ? It may be that this has now fallen into value territory but I am still scratching my head to get a better grip on what could be wrong with the business model to account for the IPO discount and poor share performance particularly given that the share price of the ARA hospitality trust has been reasonably stable

I read from somewhere before , the sponsor actually wanted to IPO it at a higher price but reduced it  to 78 cents owing to bad market sentiment during that time .
The queen Mary ship/hotel also comprise of a big piece of land next to the ship , so assume if the ship is totally worthless , the land next to it should worth something .
This enticed me to commit a  small position into EAGLE HT today . Hope I was not wrong in making this decision.

Substantial shareholder Tong Jinquan sold 10 million shares at US$0.65.
That probably explains the drop of share price. But as to why he sold, it's anybody's guess.
He still holds close to 5% stake. The share price may not have seen its bottom if the selling continues.

Just sharing. SSH selling info.

They are SSHs , got their shares thru private placements but sold after IPO below IPO price , any reason ?

Another substantial shareholder Shih Hau Yuan unloaded 5 million shares at US$0.675.

[Stocker]

The selling seems not over after IPO ?
Is it because of this potential disaster from Queen Mary ship/hotel ?


 
Hope to have comments from buddies here .
 
(Just vested at 0.655 )

I have been trying to figure out the same. I held off from investing at higher prices due to this concern but the share price has dropped from 78 cents to 66 cents or 15%. What piques my interest at this level is not just the high forecast dividend yield (close to 10%) but also the fact that the Queen Mary was valued at USD 159MM out of a total portfolio valuation of USD 1,270MM or 12.5% of the portfolio. Hence , the share price decline assumes that the Queen Mary is worth zero IF you assume that the rest of the assets are still valued correctly. However, it is weird that this hospitality trust would IPO at 78 cents when the book value is 88 cents. To me, that sets off alarm bells. Why would the sponsors be so keen to offload these assets that they are willing to offer a significant discount to book ? It may be that this has now fallen into value territory but I am still scratching my head to get a better grip on what could be wrong with the business model to account for the IPO discount and poor share performance particularly given that the share price of the ARA hospitality trust has been reasonably stable

I read from somewhere before , the sponsor actually wanted to IPO it at a higher price but reduced it  to 78 cents owing to bad market sentiment during that time .
The queen Mary ship/hotel also comprise of a big piece of land next to the ship , so assume if the ship is totally worthless , the land next to it should worth something .
This enticed me to commit a  small position into EAGLE HT today . Hope I was not wrong in making this decision.

Substantial shareholder Tong Jinquan sold 10 million shares at US$0.65.
That probably explains the drop of share price. But as to why he sold, it's anybody's guess.
He still holds close to 5% stake. The share price may not have seen its bottom if the selling continues.

Just sharing. SSH selling info.

They are SSHs , got their shares thru private placements but sold after IPO below IPO price , any reason ?

Another substantial shareholder Shih Hau Yuan unloaded 5 million shares at US$0.675.

Not to worry if married deal , need to worry if he sold in open market. The one who could buy one shot at 5m shares should not be ordinary retail investor . This is just my view .