PAPee: No $ to Help REITS. Collapse IMMINENT?

[makapaaa]

<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0><TBODY><TR>Feb 21, 2009
GOVT TELLS REITS:
</TR><!-- headline one : start --><TR>Ride out storm without special help
</TR><!-- headline one : end --><TR>90% minimum payout ratio won't be lowered, says Lim Hwee Hua </TR><!-- Author --><TR><TD class="padlrt8 georgia11 darkgrey bold" colSpan=2>By Joyce Teo
</TD></TR><!-- show image if available --></TBODY></TABLE>




<!-- START OF : div id="storytext"--><DIV class=story_text><!-- more than 4 paragraphs -->REAL estate investment trusts (Reits) should not expect any additional help from the Government to get through the credit crunch. They will have to adjust like other listed firms.
That was the message yesterday from the Senior Minister of State for Finance and Transport, Mrs Lim Hwee Hua, who added that the days of easy credit and low financing are over.
Reits have been trading significantly below their net asset value. They are having trouble refinancing because of the tight credit market, and some of the smaller ones recently asked the Government to lower the 90 per cent minimum payout ratio to unit holders, which is needed to qualify for tax transparency treatment.
But the Government is resisting the calls. Mrs Lim told a Reit summit yesterday that the Ministry of Finance and the Monetary Authority of Singapore (MAS) have 'deliberated this issue' and decided that the minimum payout ratio will not be changed.
'The key characteristics of Reits as a stable, high-payout, pass-through vehicle are important considerations for investors and, hence, must be preserved,' said Mrs Lim.
She added that there are no strong grounds to justify a special tax treatment for Reits that is not made available to other entities.
'It is unrealistic for (Singapore) Reits to expect to have continued access to cheap and easy credit during this recession,' she said.
Many businesses across various sectors face similar refinancing difficulties as Reits, said Mrs Lim, who spoke at the Singapore Reit Summit organised by the Asian Public Real Estate Association (Aprea).
Earlier this month, Aprea asked the Government to help Reits refinance $4 billion of debt. They stressed that Reits are what will attract investors to Singapore as it moves out of this recession.
Mrs Lim said the Reit market is one of the key sectors in Singapore's equity market, and MAS, other government agencies and the Singapore Exchange (SGX) have been actively seeking feedback and reviewing suggestions on the challenges it faces.
She added that measures to facilitate secondary fund-raising by listed issuers, including Reits, have been introduced.
On Thursday, the SGX also announced further temporary measures to help listed firms raise funds. It said it will continue to explore other initiatives to ease secondary fund-raising, including the Australian accelerated rights issue structure, which requires more detailed study.
Yesterday, Mrs Lim also mentioned the possibility of requiring Reits to hold annual general meetings to ensure better corporate governance.
DMG & Partners securities' investment analyst Brandon Lee told The Straits Times: 'As long as the credit market remains distressed, the smaller Reits will certainly find it harder to refinance or roll over their outstanding debt, given that banks are currently more inclined towards extending credit to those with strong sponsors, proven track records and quality assets.'
Saizen Reit announced last week that it will not give any payout for the second quarter. It said it wants to conserve cash due to the uncertain credit environment and the maturity schedule of its loans.
But despite calls for concessions, some Reits said reducing the payout ratio should not be an option, particularly if Singapore is to remain the leading hub for Asian Reits.
'We strongly oppose any moves to make short-term, knee-jerk changes to our Reit regulations which will destroy investors' confidence and consequently the S-Reit market,' said the chief executive of Mapletree Logistics Trust Management, Mr Chua Tiow Chye.
'If managers are allowed discretionary powers to decide how much to pay out, the Reit will be no different from a normal developer company.'
A CapitaLand spokesman agreed: 'Reducing the payout will fundamentally alter the characteristics of the Reit as a high-payout, tax-transparent investment vehicle.'
In the short term, however, the Reit sector could see some consolidation.
This is 'not unlikely' as asset values are looking increasingly cheap, said DMG's Mr Lee. 'In the worst-case scenario, asset divestments at distressed prices could end up as the last resort for these Reits to pare down their debt levels.'
[email protected]
<!-- end of for each --><!-- Current Ratings : start --><!-- Current Ratings : end --><!-- vbbintegration : start --><DIV class=vclear><!---vbbTime (Thread ID: 17110) - Start : Sat, 21 Feb 2009 03:58:37:379---><SCRIPT language=javascript>function readCookieVbb() { var errorString = getURLParam("error"); user=getCookie("HTTP_user_id") luser="" if (user!=null) { luser=user.toLowerCase() if (luser == "anonymous" || luser == "anonymous|anonymous") { window.location= p_logoutLink; } } if(user != null && user !=0 && luser!=null && luser != "anonymous" && luser != "anonymous|anonymous") { document.writeln("<table border='0' width='100%' cellspacing='0' id='story_comments' style='display:none'>") document.writeln("<tr id='comments_body' style='display:none'><td colspan='2'>") document.writeln("<table border='0' width='100%' cellspacing='0'>") document.writeln(" <tr ><td class='heading'>Latest comments</td></tr>") document.writeln(" <tr><td id='messageDisplayRegion' width='100%'></td></tr>") document.writeln(" <tr><td align='right'>&raquo; Offensive? Unsuitable? Report comment
</td></tr>") document.writeln("</table>") document.writeln("</td></tr>") document.writeln("<tr><td width='100%' colspan='2'>Leave a comment
</td></tr>") document.writeln("<tr><td><textarea rows='4' cols='60' name='replyMessage' id='replyMessage'></textarea></td>") document.writeln("<td align='right' valign='bottom'></td></tr>") if(user ==0) { // do nothing } else { document.writeln("<tr><td colspan='2' class='details'>Logged in as") document.writeln(user) document.writeln("</td></tr>") } document.writeln("<tr><td colspan='2' class='georgia11 darkblue'>Warning: Any user who posts offensive or irrelevant comments will be banned from this Discussion Board.</td></tr>") document.writeln("<tr><td colspan='2' id='viewAllPostsRegion' align='right'></td></tr>") document.writeln("</table>") } else { document.writeln("<table border='0' width='100%' cellspacing='0' id='story_comments' style='display:none'>") document.writeln("<tr id='comments_body' style='display:none'><td>") document.writeln("<table border='0' width='100%' cellspacing='0'>") document.writeln(" <tr ><td class='heading'>Latest comments</td></tr>") document.writeln(" <tr><td id='messageDisplayRegion' width='100%'></td></tr>") document.writeln("</table>") document.writeln("</td></tr>") document.writeln("<tr><td>") document.writeln("<table border='0' align='center' width='460' cellspacing='0'>") document.writeln("<tr><td colspan='2' class='georgia11 darkblue'>Warning: Any user who posts offensive or irrelevant comments will be banned from this Discussion Board.</td></tr>") document.writeln("</table>") document.writeln("</td></tr>") document.writeln("<tr><td colspan='2' id='viewAllPostsRegion' align='right'></td></tr>") document.writeln("</table>") document.writeln("<table border='0' width='100%' cellspacing='0'>") document.writeln(" <tr><td align='right'>&raquo; Post comments here</td></tr>") document.writeln("</table>") }}</SCRIPT><STYLE> .Post { font-family:Georgia, "Times New Roman", Times, serif; padding:0; margin:0; font-size:11px; } .AlternatePost{ font-family:Georgia, "Times New Roman", Times, serif; padding:0; margin:0; font-size:11px; } ThreadDisplayPanel { border: 1px Solid #000; width: 600px; } .gwt-Label{ font-weight: bold; } #story_comments {padding:15px;} .heading {border-top:3px double #007BFF;border-bottom:1px solid #777777; font-weight:bold; font-size:14px;padding:5px 5px; margin-top:10px;} .details {border-bottom:1px solid #007BFF; padding:5px 5px 5px 0px; font-family:Verdana, Arial, Helvetica, sans-serif; font-size:11px; color:#777777;} .more{padding:5px 5px; text-align:right;font-size:11px;font-weight: bold;}</STYLE><META content=/vbbStory/com.mavenlab.sph.vbintegration.vBIntegration3 name=gwt:module><SCRIPT language=javascript src="/STI/STIMEDIA/style/gwt.js"></SCRIPT>

 

[commoner]

when property price boomed, REITs pay their staff 6-12 months bonus, now looking for special treatments,,, Pui, KNNBCCG another jiak liao bees people,,, should join PAP, looking for handouts

 

[lifeafter41]

when property price boomed, REITs pay their staff 6-12 months bonus, now looking for special treatments,,, Pui, KNNBCCG another jiak liao bees people,,, should join PAP, looking for handouts

Where does the 6 to 12 months bonus comes from?. From the ordinary people squeeze by high rental charged by these landlords or so call REITs.

 

[Conan the Barbarian]

I'm glad PAP made this decision.

 

[Devil Within]

Please use your brains. Why should PAP use tax payers money to help a private company like RIETS from going bust? When the private company making tons of money, did they give tax payers their bonuses? Just because the American spastic government destroying their dollars by dumping money to the bankrupted rich, you want Singapore government to follow them blindly also? Are you suffering from "Angmo tau kee" syndrome?

 

[lancheowman]

Please use your brains. Why should PAP use tax payers money to help a private company like RIETS from going bust? When the private company making tons of money, did they give tax payers their bonuses? Just because the American spastic government destroying their dollars by dumping money to the bankrupted rich, you want Singapore government to follow them blindly also? Are you suffering from "Angmo tau kee" syndrome?

devil inept-vocab/devil wee-in-tin,

stupid jiu si stupid, cannot hide one
REITs is a private company issit? then how come its shares are owned by the public and how come it is listed leh? you dunno just keep your big mouth shut....at least not everybody will noe u r stupid....sibei xie suay

 

[Devil Within]

devil inept-vocab/devil wee-in-tin,

stupid jiu si stupid, cannot hide one
REITs is a private company issit? then how come its shares are owned by the public and how come it is listed leh? you dunno just keep your big mouth shut....at least not everybody will noe u r stupid....sibei xie suay

Attention seeking brainless lancheowless faggot. Showing off your dickless ego here again har? School holiday liao ah? You got no friend to show off your dickless ego ah? :oIo:

 

[lancheowman]

Attention seeking brainless lancheowless faggot. Showing off your dickless ego here again har? School holiday liao ah? You got no friend to show off your dickless ego ah? :oIo:

xia suay small boy devil wee-in-tin,

make mistake jiu admit, you dun even know what is a REIT, you want to kpkb, this is not xia xuay, then what is it? lose means loe guay guay come and learn from uncle

 

[Devil Within]

xia suay small boy devil wee-in-tin,

make mistake jiu admit, you dun even know what is a REIT, you want to kpkb, this is not xia xuay, then what is it? lose means loe guay guay come and learn from uncle

You really xia xuay. you don't even know who your real father is? Didn't your prostitute mother told you? Never mind son, you can come seek for my attention after I fuck your prostitute mother tonight and I will tell you who your father is. Just come in after your prostitute mother stop screaming like a pig when I fuck her, ok?

 

[lancheowman]

You really xia xuay. you don't even know who your real father is? Didn't your prostitute mother told you? Never mind son, you can come seek for my attention after I fuck your prostitute mother tonight and I will tell you who your father is. Just come in after your prostitute mother stop screaming like a pig when I fuck her, ok?

small boy devil wee-in-tin,

xia suay jiu si xia suay, dunno what REITS are just diam diam dun talk, now uncle forced to point out your mistake, you have to act blur act seow again .... how can everytime like dat? anyway, you bull dog father says hi to your pomeranian mum

 

[Devil Within]

small boy devil wee-in-tin,

xia suay jiu si xia suay, dunno what REITS are just diam diam dun talk, now uncle forced to point out your mistake, you have to act blur act seow again .... how can everytime like dat? anyway, you bull dog father says hi to your pomeranian mum

You act blur ah? Thot I told you to seek for my attention AFTER I finish fucking your mother and not while I'm fucking her? See, now she say you got no manners. lol!... So, now you be a good boy, ok? And come to seek for my attention AFTER I finish fucking your prostitute mother. LOL!..

 

[lancheowman]

You act blur ah? Thot I told you to seek for my attention AFTER I finish fucking your mother and not while I'm fucking her? See, now she say you got no manners. lol!... So, now you be a good boy, ok? And come to seek for my attention AFTER I finish fucking your prostitute mother. LOL!..

LMFAO small boy devil wee-in-tin ki seow again,

xia suay jiu si xia suay, dunno what REITS are just diam diam dun talk, now uncle forced to point out your mistake, you have to act blur act seow again .... how can everytime like dat? anyway, you bull dog father says hi to your pomeranian mum

 

[annexa]

More rental hikes in the making. Unless these REITS fo bankrupt. Bail them out, they will also raise rental to pay themselves 6 months+ bonus. Screws us up anyway.

 

[commoner]

no worries,,, the government is giving them rebates to pass to the tenants,,,,,,,,,,, oooooops,,,,,, sorry not passing to the tenants, MapleTree (temasick), but to fatten their pockets for 2009 year end bonus. Mapletree is what the chinese would call wo(1) liang (2) landlord........... for REITs, let rthem die la,,,,,,

for those holding the shares, sell them now, let them collapse