Post Reply
1-5 of 5
Does anyone know when will they announce div payt??
This reit is moving up from the word'Go' since trading day! So if the IPO price is $1, then now vested holders are already having a 16-17% returns in 3 months. Are there any Reits like Fransers coming up??
OCBC says it has started covering with a target price of $1.35. FCT has a portfolio of three suburban shopping malls here: Causeway Point, Northpoint and Anchorpoint.
"The main attraction of FCT's portfolio is its good organic growth potential due to its low average rental rates compared to market rates," OCBC said.
OCBC estimates FCT can distribute about $0.0595 per share next year, giving it a potential return on investment of over 23%.
FCT is also trading an attractive price, equivalent to a price-to-book ratio of 1.1 to one, compared to its peer, CapitaMall Trust, which is trading at a price-to-book ratio of more than 1.5 to one.
It said it will buy a 44,000 sq feet piece of land next to Northpoint Shopping and build an extension to the mall. It plans to build five levels of retail space, which will then give Northpoint a total net lettable area (NLA) of 224,000 sq feet.
"This new building will take us closer to achieving our objective of doubling FCT's asset portfolio size within 3 years," Christopher Tang, CEO of Frasers Centrepoint Asset Management Ltd said. The asset management firms manages FCT.
Excluding the new extension, FCT currently has three malls in its porfolio, Causeway Point, Northpoint and Anchorpoint, with a total NLA of 640, 495 sq feet, valued at $915m.
DBSV said it has initiated coverage with a target price of $1.35, seeing potential upside for the share price.
"FCT provides a unique buying opportunity into a REIT (real estate investment trust) that can potentially double its property portfolio as it is recently listed compared to other REIT peers," the brokerage said in a note. "Current rental levels also suggest room for upside as the portfolio is trailing behind other suburban malls," it added.
DBS Vickers said it expects FCT to acquire Centrepoint Shopping Centre and Yishun properties in the near term, and hence enlarge its portfolio to $1. 6b from $0.915b currently.
It is estimating FCT's distributable income for the year ending Sept 30 at $11.5m and $35.6m for the following business year.