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Results coming out today.
Causeway Point is fully-operational now!
Credit Suisse recommends BUY with Target Price of $1.90
We assume coverage of FCT with an OUTPERFORM rating and a
new target price of S$1.90, which implies 34% total potential return.
● We like FCT’s pure exposure to suburban malls, which is our most
preferred sub-segment, as its malls are in high catchment
population areas. We also like its portfolio defensiveness and its
lease structure, which have imputed step-up clauses of 2-3% per
year that underpin organic growth.
● The Bedok Point acquisition is expected to take place in 2011.
Assuming a S$200 mn value, at a 5% cap rate, the acquisition will
add 5S¢ to the current DDM of S$1.90. The next target could be
Changi City Point in 2012. Meanwhile, AEI work at CWP is expected
to complete by December 2012, and management forecasts a 22%
rise in NPI post-AEI. Further upside to shopper traffic is likely when
the train station is relocated from Tg Pagar to Woodlands.
● FCT trades at a 6.0% FY12E yield, versus a normalised average
of 5.4%. We believe the stock will remain resilient, as suburban
rents are expected to steadily trend upwards.
Good Luck
Frasers Centrepoint Limited together with Far East Organization and Sekisui House has tendered for the mixed-use development site at Punggol Central/Punggol Walk at a tender price of $1.02 billion. FCL and Partners each holds a 33.33 per cent interest. The Site, which is planned for a mixed commercial and residential development, has a land area of approximately 322,909 square feet, with a maximum permissible total gross floor area of 1.4 million square feet. FCL and its Partners intend to develop this Site into an iconic waterfront development comprising 680 residential units with excellent waterway views, and a 365,000-square foot retail mall.
/sgx/
Fraser & Neave unit Frasers Centrepoint and its partners bid $1 billion for a Singapore site, beating six others even as the government introduced more measures to damp property speculation.
Frasers Centrepoint, Far East Organization and Sekisui House plan to build 680 homes and a 365,000-square-foot shopping mall on the north-eastern Singapore site, according to a statement to the stock exchange late yesterday. Far East is the city-state’s biggest privately held developer.
“The seven bids that this tender attracted indicate that developers are still eager to acquire attractive sites,” Nicholas Mak, executive director of SLP International Property Consultants, said in an e-mailed statement.
Singapore’s private home sales declined 11% to 1,189 in January from the previous month as government measures took effect. Last month’s sales were the lowest since October when 1,066 homes were sold, according to data on the Urban Redevelopment Authority’s website.
The bid “demonstrates our confidence in the Singapore property market,” Lim Ee Seng, chief executive officer of Frasers Centrepoint, said in the statement.
The city may take further steps to damp the property market if needed following last month’s curbs, Mah Bow Tan, minister for national development, said in Parliament on Feb 14. The government on Jan 13 raised down payment requirements for second mortgages and raised sales taxes, which were pre-emptive and imposed to cool the market, not “crash it,” Mah said.
Private home prices in the city-state climbed 2.7% to a record in the fourth quarter, boosting gains in 2010 to 18%.
Credit Suisse recommends BUY with Target Price at $1.68
● 1Q11 DPU of S¢1.95(+2 YoY, -10% QoQ) was broadly in line with
our and consensus FY11 estimates of S¢8.20. DPU growth was
0.5% QoQ excluding the release of S¢0.21 of retained income in
4Q10. Revenues slipped 15% QoQ, weighed by AEI works at
CWP, but grew 19% YoY on YTP and NP2 acquisitions in Feb 10.
● Portfolio occupancy declined 6 p.p. QoQ to 92.1% as at Dec 10 as
refurbishment works went full steam at CWP, which saw
occupancy dip to 86.1%, in line with our expectations. Rent
reversions were robust at 11.6% across the portfolio.
● Gearing and cost of debt were flat QoQ at 30.6% and 3.76%,
respectively. As expected, FCT has secured refinancing for its
4.12% S$260 mn CMBS (56% of total debt) due July 2011 at 95
bp above the five-year SOR (2.03% as of 31 Dec), yielding cost
savings. We maintain forward blended debt cost at 3.3%.
● We maintain our forecasts. FCT remains our preferred pick
among the retail mall REITs, on attractive yield of 6-6.2%, revamp
of CWP and potential S$130 mn acquisition in next nine months.
Life Is Great
After market closed::
| Frasers Centrepoint signs $264m loan to refinance debt |
| WRITTEN BY BLOOMBERG | |
| FRIDAY, 03 DECEMBER 2010 18:20 | |
Frasers Centrepoint Trust signed a $264 million, five-year loan that it will use to refinance debt, according to data compiled by Bloomberg. The term loan pays interest of 95 basis points more than the Singapore swap offer rate, the data show. | |
| LAST UPDATED ON FRIDAY, 03 DECEMBER 2010 18:21 |
Frasers Commercial Trust (FCOT): High quality assets, Strong sponsor; Initiate with BUY rating
Summary: Frasers Commercial Trust (FCOT) owns 10 properties across three countries with retail and office components. Its sponsor, Frasers Centrepoint Limited (FCL), is a leading Singapore-based property company with a strong global foothold in property development, property investment and serviced residences. The benefit is not just in terms of indirect and/or direct financial support – there are also opportunities for sponsor-backed acquisitions (possibly Alexandra Point and Valley Point in the near to middle term). FCOT is trading at a 59% discount-to-book compared to the broader Office-REITs which are trading at 30% discount-to-book. We believe this significant discount is unjustified, considering FCOT’s high-quality assets, healthy balance sheet and its strong sponsor. We initiate coverage of FCOT with a BUY rating and a RNAV-derived fair value of S$0.17.
/PS
Luckily is Private Placement.... smaller impact on the shares price.. ('.' )
-- REUTERS-- 26Jan10
Frasers Centrepoint to raise up to US$130m via placement
SINGAPORE - Frasers Centrepoint Trust, which owns shopping malls in Singapore, said it planned
to raise as much as $182 million (US$130 million) through a private placement of new units.
Frasers Centrepoint, which is managed by conglomerate Fraser & Neave, will sell 137 million new
units for between $1.29 and $1.33 each to help finance the purchase of two malls in northern Singapore,
it said on Tuesday.
DBS is the sole adviser for the issue and is lead manager and underwriter alongside Citigroup.
Singapore real estate investment trusts are looking to grow their portfolios to take advantage of lower
commercial property prices.