Fraser Property (former Fraser Centrepoint)

Fraser Property (former Fraser Centrepoint)

Postby winston » Wed Jan 22, 2014 6:02 am

not vested

Fraser Centrepoint starts trading

http://www.bloomberg.com/news/2014-01-0 ... mover.html
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Re: Fraser Centrepoint

Postby winston » Wed Jul 02, 2014 9:12 am

Offer for ALZ makes sense

FCL has confirmed its takeover offer of ALZ after completing due diligence.

We continue to believe that the offer makes strategic sense. Additionally, we expect value creation to come from ALZ’s residential and industrial landbank, with GDV of S$8.8b and S$2.1b respectively.

While net gearing post the transaction is expected to be high at 1x, we believe that FCL will be able to lower it to ~0.7x by monetising industrial assets from ALZ.

We maintain our Add call as we believe that the transaction makes sense.

Our target price (30% discount to RNAV) and EPS forecasts remain unchanged as we have not yet factored in the takeover.

Source: CIMB
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Re: Fraser Centrepoint

Postby winston » Sat Aug 02, 2014 6:45 pm

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Frasers Centrepoint Limited unveils plans for Northpoint City

Frasers Centrepoint Limited (FCL) unveiled Northpoint City, an upcoming integrated development in Nee Soon, at an exhibition launched today by the Minister for Foreign Affairs and Law, K. Shanmugam.

Under HDB’s Remaking Our Heartland initiatives, Nee Soon has been earmarked as one of the towns undergoing a series of transformations to improve the living environment of residents.

Scheduled for completion by 2018, Northpoint City combine the largest mall in northern Singapore with an air-conditioned bus interchange, the first Community Club located in a shopping mall, a new town plaza, a roof-top Community Garden, and the 920-unit North Park Residences.

“For the last 22 years, FCL has been setting trends with Northpoint and the completion of Northpoint City is another milestone that further attests to our commitment to enhancing the lives of the Nee Soon community. FCL has a proven track record in developing and managing successful integrated developments, including Changi City in Singapore and our multi-award winning Central Park mixed-use project in Sydney.

We look forward to leveraging our expertise and experience in integrated developments to deliver an iconic development that Nee Soon residents can enjoy and be proud of,” said Lim Ee Seng, Group CEO of Frasers Centrepoint Limited.

Northpoint City will also involve the construction of new pedestrian bridges that will offer barrier-free access to the entire development. Coupled with new roads and a 15.5 km dedicated cycling network that are part of Nee Soon’s transformation, Nee Soon residents will be able to enjoy seamless connectivity right at their doorstep.

In addition, Northpoint City will benefit from the Government’s plan to improve seamless transport connectivity with the upcoming North-South Expressway and the Thomson Line come 2020.

Source: The Edge
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Re: Fraser Centrepoint

Postby winston » Mon Aug 11, 2014 4:30 pm

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Business as usual

FCL SP / FRCT.SI | ADD - Maintained | S$1.77 /TP S$2.12
Mkt.Cap:US$4,075.00m | Avg.Daily Vol:US$0.76m | Free Float:12.00%

3Q and 9MFY14 core net profit was in line at 25% and 70% of our and consensus full-year estimates. During the quarter, FCL recorded strong growth on recognition of development earnings and was active on the capital-recycling front.

While much of the recent attention has been on its ALZ transaction, we note that FCL remains fundamentally strong with S$2.7bn of unrecognised development revenue, stable investment properties and a growing hospitality segment.

We maintain our Add rating and raise our target price to S$2.12 (30% discount to RNAV), largely due to higher target prices for FCT and FCOT and slightly lower FY14-16 EPS.


Results in line, strong on development earnings

FCL’s PBIT grew over 50% yoy, largely due to higher development earnings from
1) the sale of Changi City Point (CCP),
2) the completion of Chengdu Logistics Hub Phase 2, and
3) overseas developments in Australia and the UK.

Property sales was slower this quarter, partly contributed by a lack of launches. The upcoming launches in Australia should see healthy demand and sales.

Active capital recycling

Management continues to execute on its capital-recycling plans. We estimate that ~S$800m in capital was unlocked from the sale of 50%-owned CCP and the listing of Fraser Hospitality Trust (FHT).

With the capital deployed, FCL was also active on the acquisition front, purchasing Sofitel Sydney Wentworth for ~S$240m, additional stakes in FCT and FHT for ~S$300m and the Sembawang Drive EC site for S$240m.


Add on strong fundamentals and cheap valuations

Solid fundamentals. While much of the recent attention has been focused on the ALZ transaction, we note that FCL is fundamentally strong. It has locked in S$2.7bn of unrecognised revenue from its development segment, which should provide some earnings stability despite the weak residential markets in Singapore and China.

The commercial properties are stable and we anticipate a continual injection of pipeline assets into its REIT platforms. The hospitality segment is on track to manage more than 10,000 apartments by 2014.FCL is cheap, with valuations at a 42% discount to RNAV vs. peers’ 33%.

Previous "Frasers Centrepoint Ltd" reports...
8/8/14 Co.Flash Unconditional offer for ALZ (AD, S$1.72 /TP:2.09)
2/7/14 Co.Flash Offer for ALZ makes sense (AD, S$1.86 /TP:2.09)
5/6/14 Co.Flash A transformational proposal (AD, S$1.85 /TP:2.09)

Source: CIMB
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Re: Fraser Centrepoint

Postby winston » Tue Aug 12, 2014 10:10 am

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Charging ahead;
Price Target : 12 month S$ 2.08

• 3Q14 PATMI of S$109.2m in line with expectations
• Australand take-over ongoing; proceeds from listing of FHT to improve balance sheet metrics
• Maintain BUY with TP S$2.08

Highlights
3Q14 results in line with expectations. Frasers Centrepoint Limited (FCL) delivered a 3Q14 PATMI of S$109.2m, which was 59% lower y-o-y. The main reason was the revaluation exercise undertaken prior to the listing of FCL back in Jun’13. Stripping out close to S$204m in revaluation gains in 3Q13, on a comparative basis, core 3Q14 PATMI would have risen by 77% y-o-y to S$120.0m. FCL’s balance sheet metrics remained stable with Net Debt/Equity at 0.5x for the quarter.


Portfolio highlights.

Revenues and operating profits jumped 41% and 68% y-o-y to S$575.4m and S$147.6m respectively. The improved operational performance was due to FCL’s share of proceeds from the divestment of Changi City Point to FCT, revenue recognition from the completion of Chengdu Logistics Hub Phase 2 in China and sale of completed units at One Central Park and Putney Hill in Australia, and Riverside Quarter in the UK.

The group’s hospitality division also saw a 17% y-o-y jump in revenues to S$53.5m, on the back of better occupancies achieved. Its other business divisions – the investment properties and REITs remained fairly stable, offering consistent cashflows to the group.


Our View

Unrecognised revenues from property development close to S$2.56bn. YTD, the group has sold c.410 and 380 residential units YTD in Singapore and in Australia respectively. Locked-in and unrecognised revenues in these two countries are c.S$1.9bn and S$0.6bn respectively, which is expected to be recognised progressively in the coming years. The group has also sold a majority of units launched in China, achieving close to over 1,500 in sales.

Proceeds from listing of FHT to further strengthen balance sheet metrics. In line with its capital recycling strategy, FCL is expected to reap close to S$654.7m in proceeds through the divestment of six serviced residences following the successful listing of Frasers Hospitality Trust (FHT). Assuming that the proceeds are fully utilised towards repayment of debt, debt/equity is expected to further improve to c.0.4x.

Australand completion. FCL has garnered close to 56.8% in acceptance for its take-over offer for Australand and the offer was declared unconditional on 7th Aug’14. The offer is expected to close on 21st Aug’14 and the intention of the group is to eventually delist Australand.


Recommendation

BUY, S$2.08 TP. Valuations remain attractive at 0.9x P/BkNAV.

Maintain BUY with a target price at S$2.08 based on 30% discount to RNAV.

Source: DBS
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Re: Fraser Centrepoint

Postby winston » Sat Aug 16, 2014 8:52 pm

vested

Ready for the big league
Jan 11, 2014

We believe FCL is significantly underpriced, backed by its portfolio of undervalued assets with redevelopment potential and S$3.2bn presales
yet to be booked.

The capacity to lift its asset recycling/ AUM platform is considerable with TCC on board.

The stock’s low free float is still prohibitive for large investors but we think this will change over time.

We begin coverage with an Add rating and a target price of S$2.06, set at a 30% discount (1x P/BV) to RNAV.

FCL is trading at a 48% discount to RNAV, much wider than the sector average of 34%.

Potential catalysts include successful asset recycling and moves to increase the stock’s free float.

Downside risks come from weaker-than-expected demand for REITs and commercial/retail rents.

Source: CIMB

https://brokingrfs.cimb.com/9Dj4ZDYx1kK ... PEt-41.pdf
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Re: Fraser Centrepoint

Postby winston » Wed Sep 10, 2014 8:41 am

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FCL is our preferred pick

At a 45% discount to RNAV, FCL is not only cheap but has strong fundamentals.

It has good timing, having pre-sold most of its Singapore projects prior to the slowdown.

We believe that through Australand, FCL has a valuable platform with a strong management team.

We believe the recent share price weakness is the result of a perceived financing overhang, which is likely to have been factored into the share price.

A near-term catalyst could be when management provides greater clarity on its balance sheet management.


Source: CIMB
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Re: Fraser Centrepoint

Postby winston » Thu Nov 13, 2014 5:54 pm

vested

Time: 9:23AM
Exchange: SGX
Stock: Frasers Cpt(TQ5)
Signal: Bullish MACD Crossover
Last Done: $1.62

Source: UOBKH
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Re: Fraser Centrepoint

Postby winston » Thu Nov 13, 2014 6:39 pm

BOA ML maintain BUY:

Results above, with dividend surprise; Maintain Buy

FY14E core NPAT of S$544m (+28% yoy) was above expectations, beating our and the consensus estimates by 13%. The beat was driven by stronger presales recognitions in Australia.

NAV per share rose by 5% yoy, to S$2.23, with headline ROE up 70bps yoy, to 8.4% (core at 7.7%). These, coupled with a dividend surprise of 8.6ct, for an attractive 5.4% yield, round up a strong set of results.

We maintain our Buy call on FCL. We will provide more updates after the earnings briefing.


Firm across most segments

Development revenues rose 33% yoy in FY14, driven by stronger overseas projects that accounted for 61% of FCL’s total development revenues.

Project completions in Australia (3 projects at Central Park Sydney / 98-99% sold) and China (Baitang One / 98-99% h1A-2A) underpinned a 31% yoy increase in development PBIT.

PBIT from investment properties rose 8% yoy, driven by higher rents at One@Changi City and across most of its existing portfolio, which is at Hospitality PBIT declined 3% yoy on increased room supply and competition in the sector.


Unrecognized presales at S$2.2bn

Unrecognized presales as at FY14 stood at S$2.2bn, which we estimate will underpin FCL’s FY15-16E revenues.

Singapore, Australia and China account for S$1.7bn, S$0.4bn and S$0.1bn of the total amount, respectively.

Net gearing as at FY14 remains high, at 0.95x, but should come off naturally in FY15-16E, as more presales are booked and contributions from ALZ kick in.

Estimates adjustments

We roll over our estimates to FY17E and adjust our FY15-16E core EPS by +5%/- 10%, on adjustments to our sales recognition assumptions.

We also lower our PO to factor in the higher dividend payout, changes in AUD and our new valuation for FCT.

Source: BoA
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Re: Fraser Centrepoint

Postby winston » Fri Nov 14, 2014 10:34 am

vested

Frasers Centrepoint Ltd registered a strong end to FY14, and declared a final DPS of 6.2 Scts.

FY14F revenues and pretax profit rose by 33% and 21% y-o-y to S$2.7bn and S$0.7bn, respectively.

Attributable profit (after fair value adjustments) fell 31% y-o-y to S$501m, mainly due to one-off expenses from restructuring costs of S$42m (debt repayment prior to listing) and acquisition costs attributable to Australand.

Upward earnings trajectory from unrecognized revenues of S$3.9bn; recurring revenues from Australand.

Maintain BUY, TP S$2.05 (Prev S$ 2.08).

Source: DBS
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