Post Reply
21-24 of 24
CIMB Report on Frasers Commercial Trust
http://kfc1973-stock.blogspot.com/2011/07/fcot-near-term-catalysts-in-sight-cimb.html
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
Good news indeed.
Frasers Commercial Trust announced that that all three properties owned by the trust located in Tokyo and Osaka are intact with minimal damage, following the earthquake in Japan last Friday. All employees of its local property manager, JDP Asset Management, are safe and accounted for. Ebara Techno-Serve headquarters building and Galleria Otemae building in Tokyo and Osaka respectively only suffered minor damage. Further and thorough checks are still ongoing but based on initial findings provided by JDP Asset Management, the estimated cost of repairs is JPY1.25 million (approximately S$20,000).
/sgx