Fraser Centrepoint Trust

Re: Fraser Centrepoint Trust

Postby winston » Fri Apr 24, 2020 11:11 pm

not vested

Frasers Centrepoint Trust: In cash conservation mode

Frasers Centrepoint Trust’s (FCT) 2QFY20 results fell short of our expectations, as DPU slumped 48.7% YoY to 1.61 S cents due to an enlarged unit base, coupled with the retention of 50% of its distributable income for the quarter.

This was to conserve cash and ensure financial flexibility in light of the uncertain operating environment.

Given management’s proactive leasing efforts, it has less than 12% of expiring leases (by NLA) remaining to be renewed in 2HFY20.

Overall portfolio rental reversion was +5.2% for 1HFY20, although this is likely to come under pressure for renewals in 2HFY20, in our view. FCT sees approximately 10-15% of its tenants which are under the “higher-risk” group which may apply for rental deferment, such as SMEs and mom-and-pop stores.

Given the extension of the circuit breaker period by another month to 1 Jun 2020, we see further pressure on the trading environment for retailers.

We thus bake in another month of rental relief in our assumptions.

Our FY20F DPU forecast is lowered by 8.9% but our FY21F projections are unchanged.

Our fair value estimate inches down marginally from S$2.23 to S$2.22. BUY.

Source: OCBC
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Re: Fraser Centrepoint Trust

Postby winston » Mon Apr 27, 2020 10:36 am

not vested

Frasers Centrepoint Trust (FCT SP, NEUTRAL, TP: SGD2.07)
A Resilience Test


Company Update

Keep NEUTRAL with a new SGD2.07 TP from SGD2.55, 5% upside plus 5% yield.

The uncertainty from COVID-19 is expected to have a profound impact on the retail sector.

However, we expect Frasers Centrepoint Trust’s suburban malls, which mainly cater for domestic necessity spending, to fare relatively better. While occupancies and rent have so far been holding up well, we expect strong near-term headwinds if the pandemic prolongs.

Among retail REITs, FCT remains our preferred pick.

Source: RHB

https://research.rhbtradesmart.com/atta ... b2a824.pdf
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Re: Fraser Centrepoint Trust

Postby winston » Mon Apr 27, 2020 10:42 am

not vested

FRASERS CENTREPOINT TRUST (FCT SP) | BUY


IN CASH CONSERVATION MODE
• 2QFY20 DPU fell 48.7% due to payout ratio of 50%
• Positive rental reversions of +5.2% in 2QFY20, but weakness to come ahead
• Factor in additional rental relief in our assumptions

Frasers Centrepoint Trust’s (FCT) 2QFY20 results fell short of our expectations, as DPU slumped 48.7% YoY to 1.61 S cents due to an enlarged unit base, coupled with the retention of 50% of its distributable income for the quarter.

This was to conserve cash and ensure financial flexibility in light of the uncertain operating environment.

Given management’s proactive leasing efforts, it has less than 12% of expiring leases (by NLA) remaining to be renewed in 2HFY20.

Overall portfolio rental reversion was +5.2% for 1HFY20, although this is likely to come under pressure for renewals in 2HFY20, in our view.

FCT sees approximately 10-15% of its tenants which are under the “higher-risk” group which may apply for rental deferment, such as SMEs and mom-and-pop stores.

Given the extension of the circuit breaker period by another month to 1 Jun 2020, we see further pressure on the trading environment for retailers.

We thus bake in another month of rental relief in our assumptions.

Our FY20F DPU forecast is lowered by 8.9% but our FY21F projections are unchanged.

Our fair value estimate inches down marginally from S$2.23 to S$2.22. BUY.

Source: OCBC
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
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Re: Fraser Centrepoint Trust

Postby behappyalways » Sat Sep 05, 2020 6:32 pm

Frasers Centrepoint Trust buys remaining 63.1% capital in AsiaRetail Fund for $1.06b
https://sbr.com.sg/commercial-property/ ... l-fund-106
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