Metro Holdings

[tonylim]

Today's AGM refers.

Management confirmed that properties in China can become 0 value if the lease of the land are not renewed by the local gov. as the gov will own the building after expiry of the land lease.

Metro can only say China do not need money for land extending fees, so the only hope to get the land lease extended is base on relationship .

So far management has been talking to the local partners but to no avail.

They will continue to talk to them on this issue.

[winston]

not vested

Activist Backer Quarz Urges Singapore’s Metro to Return Cash (1)

By Klaus Wille and Jonathan Burgos

Activist investor Quarz Capital Management Ltd. has turned its sights on Singapore, calling on retailer and real-estate developer Metro Holdings Ltd. to return excess cash to investors.

Metro’s net cash holdings of S$393 million ($287 million) is high compared with other companies listed on the Singapore stock exchange, and accounts for more than half its market capitalization, Quarz said in a letter to the management and
board obtained by Bloomberg News.

Metro shares rose 2.2 percent at 10:13 a.m in Singapore.

The shares, which closed Monday at 91.5 cents, trade about 40 percent below book value, Quarz said in the letter. The company should pay a 21 cents-a-share one-off dividend to return cash to investors, as well as provide a clearer strategy for its real estate division, strengthen investor relations and align management pay more with the firm’s long-term profitability and share price, according to the letter.

It’s “inconceivable that Metro’s share price continues to languish ... despite the company’s strong recurring earnings profile and valuable assets” Quarz, which manages just under $100 million, said in the letter.

While investor activism is less common in Asia than in Europe and the U.S., Quarz, which usually targets small and medium-sized firms, said it plans to approach more Singaporean companies as many are undervalued and a new generation of owners
is more open to measures to boost stock prices.

Metro shares have gained 3.4 percent this year, compared with a 0.4 percent decline in Singapore’s Straits Times Index.
Still, it is the cheapest among Southeast Asian retailers with a market value of at least $500 million, trading at just under 0.6
times asset value. The region’s 18 biggest retailers trade at 6.7 times book value on average, according to data compiled by
Bloomberg.

Dividend Policy

Quarz has accumulated a stake of about 2 percent in Metro since the beginning of the year, Chi said. Management should “implement a clear dividend return policy” and a program to buy back stock whenever the shares trade at more than 40 percent below the net asset value, Quarz said in the letter.

A one-time 21-cent dividend would translate into Metro deploying S$174.5 million of its cash, based on the current number of shares outstanding, according to Bloomberg data.

Metro’s 12-month dividend yield was about 7.7 percent.

Quarz, co-founded in 2011 by Jan Moermann, a former investment banker with UBS Group AG and Credit Suisse Group AG,
has made an annualized return of about 10 percent since inception with its Quarz Active Value fund, Chi said.

The fund manager, which has offices in Zurich and Monaco, currently holds between 15 and 20 positions in companies in Germany, Austria,Switzerland and the U.S.

Source: Bloomberg

[winston]

not vested

Metro says cash conservation needed for long-term property development

By Gwyneth Yeo

SINGAPORE (Oct 11): Metro Holdings said it is conserving its cash for its capital intensive property division, in response to an open letter from its shareholder Quarz Capital Management.

(See also: Activist backer Quarz urges Metro to return cash)

In a filing to the Singapore Exchange, Metro said it maintains a long-term focus towards property development and investment which have long development cycles and that its key business strategy lies in expanding its property portfolio and geographical presence.

Insufficient cash will therefore hinder its potential capital deployment into property development and investment opportunities that may arise and impact its future income streams, the group added.

The group also said its net cash position is constantly fluctuating and explained that in Dec 2013, its cash position fell to $35.6 million from $429.8 million in June 2012 after the capital was deployed into a number of projects.

Following the divestment of EC Mall, the net cash position rose back to $479 million in June.

Meanwhile, over the last 12 months, Metro said it has deployed capital into Sheffield Digital Campus in Sheffield, UK, and the InfraRed NF China Real Estate Fund II (A).

Both these investments, as well as an earlier investment in Middlewood Locks in Manchester, UK, require further capital which the group is set to provide, said Metro.

Nevertheless, Metro said it has a “good track record of constantly paying dividends to shareholders”, paying out 29 cents per share over the past five financial years. In FY16, it declared total dividends of 7 cents, representing a dividend yield of 7.4%.

The group said it welcomes Quarz to attend its annual general meetings where many of the issues raised in the open letter have been raised and considered in the past.

Shares of Metro closed 1% higher at $1.01.

Source: The Edge

http://smr.theedgemarkets.com/article/m ... e-87358173

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Metro 3Q earnings fall 63.3% to $20.5 mil on lower profits from associates
http://www.theedgemarkets.com.sg/articl ... associates

[behappyalways]

Metro reports 29% fall in FY17 earnings to $81 mil on lower share of profit from associates and JVs
http://www.theedgemarkets.com.sg/metro- ... es-and-jvs

[behappyalways]

metro%E2%80%99s-1q-earnings-more-double-254-mil-one-gain
https://www.theedgesingapore.com/metro% ... l-one-gain

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shares-metro-rise-sale-chinese-property
https://www.theedgesingapore.com/shares ... e-property

[winston]

not vested

Metro Holdings in talks to exit Nanchang Top Spring

Metro Holdings is in discussions with H-Change Real Estate Group regarding the potential disposal of its indirect 30 per cent interest in China’s Nanchang Top Spring.

The 30 per cent stake is held by Metro Shanghai (HQ), a subsidiary of Metro Holdings, which Metro paid S$48 million to acquire.

In a stock exchange filing, Metro stated: “As there is no certainty that the potential divestment will materialise, shareholders are advised to exercise caution when dealing in the shares of the company and to refrain from taking any action in respect of their investments which may be prejudicial to their interests.”

According to Top Spring, it is divesting eight properties at various stages of development across six cities in China for a consideration of HK$15.32 billion.

In aggregate, there is a net saleable/leasable GFA of 1.97 million sq m, with net gain likely to be around HK$7.93 billion.

Metro holds a 16.1 per cent stake in Top Spring and 19.3 per cent of its voting rights; the proposed sale by Top Spring of its Chinese properties should translate to a S$186 million gain or 23 cents per share.

Completion of the sale will see Top Spring retain 14 per cent of Nanchang Top Spring Real Estate Co.

Source: Deal Street Asia

Read more at: https://www.dealstreetasia.com/stories/ ... 69cc61b4c8

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metro-sinks-red-2q-one-losses
https://www.theedgesingapore.com/metro- ... one-losses

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metro-jv-acquire-london-office-property-148-mil
https://www.theedgesingapore.com/metro- ... ty-148-mil