Fraser Property (former Fraser Centrepoint)

Re: Fraser Centrepoint

Postby winston » Tue Aug 11, 2015 2:06 pm

vested

Frasers Centrepoint Ltd: BUY; Last Traded Price: S$1.67; FCL SP
Price Target : S$2.36 (42% upside)
Boosted by development completions

• Strong set of 3Q15 results
• Clear income visibility through locked-in sales
• Time-tested strategy to recycle capital into REITs a key catalyst
• BUY, TP S$2.36


Highlights

Strong set of results in 3Q15

· Frasers Centrepoint Limited (FCL) reported a 43% rise in PATMI to S$181.5m ( or 98% rise after stripping off fair value gains in 3Q14). This was on the back of a 157% increase in revenues to S$1.01bn. The property development business segment was a major driver to topline, contributing c.64%, followed by Hospitality (12%), Australand (10%), investment properties (10%) and others (2%).

· The significant 375% rise in revenues for property development segment to S$651m was mainly due to recognition of Twin Waterfalls EC in Singapore which contributed S$572m as the project was completed in the quarter. This was also supported by ongoing sales at Suzhou Baitang in China as units in completed phases were delivered and Gemdale Megacity 2A started contributing.

· Hospitality segment revenues and PBIT grew by 136% and 55% to S$119m and S$30m respectively, largely due to the contribution from six hotels acquired by Frasers Hospitality Trust (FHT) post listing from TCC Group. In addition, an expanded portfolio – Sofitel Wenworth and Capri by Fraser, Changi City also contributed to the topline growth.

. Frasers Australand contributed positively to the group’s earnings. Average portfolio occupancy for the investment properties remains high at 96%.


Strong balance sheet metrics

· Net debt-to-equity remains stable at 0.9x, within management's comfortable range. Both interest cover and percentage of fixed rate debt remain high at 8x and 63% respectively.


Outlook

Clear visibility of locked-in sales.

· FCL continues to offer strong earnings visibility through almost c.S$3.5bn in locked-in sales, which it is expected to recognise in the coming years. These are from its development projects in Singapore (S$1.3bn), China (S$0.6bn) and S$1.6bn from its residential development pipeline in Australia, underpinning strong income visibility in the medium term.

While the group continues to draw down on past top-selling projects, this is replenished from the strong sales achieved at Northpark Residences in Singapore (570 units sold out of 700).

· The group’s landbanks for future sales are mainly coming from China and Australia which management is looking to launch opportunistically in the medium term.


Targeting to derive 60% of its income base from recurring revenues

· 59% of FCL’s revenues are recurring, with a longer-term target of 60-70%. Looking ahead, we see growing income from the completions of Punggol Point (retail), Northpoint City (retail) and Frasers Towers (commercial), which will boost its earnings further while Centrepoint Mall is expected to undergo a S$50m makeover to boost traffic and revenues post completion in 2H16.

Frasers Hospitality is also expected to see its footprint expand to 30,000 managed units by 2019.


Existing capital recycling platforms

· FCL has existing capital recycling platforms in its listed REITs, Frasers Centrepoint Trust, Frasers Commercial Trust and Frasers
Hospitality Trust, which can potentially acquire stabilised assets from FCL, freeing up capital to invest in other higher ROE development projects.

The group has recently completed the sale of 357 Collins Street to Frasers Commercial Trust, a demonstration of its recycling capability.


Valuation:

We recommend BUY on FCL, with a target price of S$2.36 based on a 30% discount to RNAV. We think that FCL is attractive at 0.7x P/Bk NAV and believe that the stock is trading at this level largely due to its tight liquidity constraints.


Key Risks:

Small free float. The stock has low free float with 87.9% of the company held by major shareholders TCC Group and Thai Beverage, thus leading to low liquidity.

Currency risk. The group derives an estimated 30% of PBIT and 35% from Australia and could be impacted by the weakening AUD/SGD exchange rate.

Source: DBS
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Re: Fraser Centrepoint

Postby winston » Tue Oct 13, 2015 9:52 am

vested

Time: 9:04AM
Exchange: SGX
Stock: Frasers Cpt(TQ5)
Signal: Bullish MACD Centerline Crossover
Last Done: $1.585

Source: UOBKH
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Re: Fraser Centrepoint

Postby winston » Fri Nov 06, 2015 2:15 pm

vested

Time: 1:55PM
Exchange: SGX
Stock: Frasers Cpt(TQ5)
Signal: Resistance - Breakout with High Volume
Last Done: $1.655

Source: UOBKH
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Re: Fraser Centrepoint

Postby winston » Wed Nov 11, 2015 9:55 am

Another good year

ADD - Maintained | S$1.66 tp:S$2.04
Mkt.Cap:US$3,398.00m | Avg.Daily Vol:US$0.19m | Free Float:12.00%

FY15 results largely within expectations; high dividend yield of 5.2%.
Good earnings visibility from large S$3.1bn of unrecognized residential billings from Singapore, Australia and China.
Extensive pipeline of new investment property projects to boost rental income base.
New Thai strategic investment to broaden foray into Thailand.
Maintain Add with a RNAV-based target price of S$2.04.


FY15 results broadly in line, high dividend yield CL reported a good set of FY15 results, which came in broadly in line with expectations. FY15 revenue and PBIT grew 62% and 44% yoy, to S3.56bn and S$1.1bn respectively, with full-year contributions from FPA, higher residential income from China and Singapore as well as contributions from new hotels. Consequently, core net profit rose 16% yoy to S$544m. The group proposed a final DPS of 6.2Scts (total S8.6cts), translating to a yield of 5.2%.


Good development visibility with S$3.1bn of unrecognized sales

Development earnings visibility is strong with total S$3.1bn of unrecognized unbilled revenue, largely from Singapore (S$1.2bn), where North Park Residences is c.66% sold.

In addition to 2,950 units released in FY15, FPA will launch a further 3,850 in FY16 to augments the S$1.5bn of unrecognized residential billings in Australia.

Whilst landbanking in Spore remains challenging due to elevated land cost, FPA boosted its landbank by another 2,833 units in FY15 to reach a total development pipeline GDV of S$8.5bn.


Newbuilds to support rental income expansion

Recurrent income accounted for a larger 58% of PBIT, in line with FCL’s 60-70% target. Growth will continue to be underpinned by the strong rental income base from FPA’s C&I portfolio and the opening of the 95% pre-leased Waterway Point in Singapore in Jan 16 as well as completion of Frasers Tower, Northpoint City and AEI works at Centrepoint.

The hospitality division should also see total units under management expanding from present 14,083 units to at least 22,783 keys by 2019.


Strategic investment in Golden Land to broaden Thailand foray

FCL announced a potential strategic investment in Thai-listed Golden Land Property Development. FCL will pay THB4,971m (S$196m) or THB7.29/share for a 29.5% share in the enlarged entity.

Post restructuring, Golden is expected to have an estimated BV of THB12,738m. Golden focuses on landed and medium-density housing and mixed-use commercial and hospitality projects in the Bangkok CBD. Transaction proceeds will be used for new investment and development projects and to reduce gearing.


Maintain Add

We maintain our Add rating on FCL with a slightly higher target price of S$2.04, based on a 30% discount to RNAV.

Whilst gearing of 83.6% is higher than its peers, we believe potential capital management such as asset sales to its existing REITs would enable FCL to recycle capital going forward.

The stock is currently trading at a steep 43% discount to RNAV. Other stock price catalyst could also emerge should the group increase its free float.

Source: CIMB
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Re: Fraser Centrepoint

Postby winston » Thu Nov 26, 2015 7:50 am

vested

Time: 4:48PM
Exchange: SGX
Stock: Frasers Cpt(TQ5)
Signal: Bullish MACD Crossover
Last Done: $1.685

Source: UOBKH
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Re: Fraser Centrepoint

Postby winston » Thu Feb 04, 2016 9:10 am

not vested

Frasers Centrepoint to weigh Australand Property IPO

SINGAPORE: Frasers Centrepoint Ltd is considering listing a real estate investment trust (REIT) in Singapore backed by Australian office and industrial properties, people with knowledge of the matter said.

The Singapore-based company could sell units in the REIT, backed by assets from its A$2.6bil (US$1.8bil) purchase of Australand Property Group, as soon as this year, depending on market conditions, the people said.

The offering could seek at least US$500mil, the people said, asking not to be named as the information is private.

Frasers Centrepoint’s offering could provide a boost to the Singapore bourse, which hosted just US$366mil of first-time share sales last year, the lowest in at least a decade, data compiled by Bloomberg show.

An index tracking 32 property trusts listed in the city-state has fallen 15% over the past year, compared with a 26% drop in the benchmark Straits Times Index.

Frasers Centrepoint is currently reviewing and exploring the proposal of establishing a REIT to be listed in Singapore as one of the various options to optimise and unlock value from its assets, including Australian industrial assets, the company said in a statement to the Singapore stock exchange yesterday.

The considerations and discussions are still ongoing and no decision has been made as to whether the transaction will take place, according to the statement.

Frasers Centrepoint, controlled by Thai billionaire Charoen Sirivadhanabhakdi, acquired Australand Property Group in 2014. The company’s Australian operations were its biggest revenue contributor in the year through September 2015, accounting for 44% of sales, data compiled by Bloomberg show.

The Singapore company, which had S$23.1bil (US$16.1bil) of total assets last year, develops and invests in property in Singapore, Australia and China, according to its website. It has already formed REITs in the hospitality, commercial and retail sectors.

Source: Bloomberg
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Re: Fraser Centrepoint

Postby winston » Fri Feb 05, 2016 10:14 am

not vested

A short term hiccup

ADD - Maintained | S$1.60 tp:S$2.04
Mkt.Cap:US$3,245.00m | Avg.Daily Vol:US$0.22m | Free Float:12.00%
Property Devt & Invt

Volatility in residential earnings drag down performance
Project completions and progressive billings to improve Singapore’s income outlook
FPA residential contributions skewed towards 4QFY16
Mid-term acceleration in commercial property earnings as new buildings complete
Maintain Add with RNAV-based target price of S$2.04


Results below expectations on timing of development profits

FCL’s 1QFY16 net profit fell 38% yoy to S$90.3m on a 37% lower revenue of S$671.6m reflecting lower residential contributions from Singapore and China due to the timing of recognition of billings, while in Australia, there was a high base with the large number of completions in the previous period.

This was partly offset by higher commercial property contributions and higher hospitality income, thanks to organic growth and the inclusion of profits from the recently-acquired Malmaison and Hotel du Vin hotels.


Singapore contributions to increase with more completions

While 1Q’s net profit accounted for only 15% of our FY estimates, we retain our projections as development contributions are expected to be largely back-end loaded. In Singapore, the completion of three projects, including recognition of 100% of profits from Twin Fountains EC and progressive billings from ongoing developments should underpin forward earnings.

Planned roll out of the 628-unit Parc Life EC in 2QCY16 and purchase of a 40% share in the Siglap Rd site (800-900 units) has extended its earnings visibility.


Bulk of Australia residential handovers in 4QFY16

The group handed over 500 units in 1Q, and has 2,500 units left to be delivered for the rest of the year, mainly in 4QFY16. Hence, we anticipate Australia residential profits to be skewed. FPA sold 843 units in 1Q and plans to release another 2,500 units for sale this FY.

This would further bolster its unrecognised revenue of S$1.8bn at end Dec 15. Its logistics and office portfolio remains highly occupied at 97.8% and offers a stable recurrent income base.


Recurrent income base to strengthen

Excluding revals, the commercial property division reported a low single-digit improvement as Centrepoint undergoes AEI. We anticipate this division to pick up strongly in the medium term, with the completion of North Park City and Frasers Towers by FY19. The hospitality division is also projected to expand its room count from the present 14,000 to 22,700 when they fully opened.


Maintain Add

We continue to like FCL for its strong recurrent income base, that made up 82% of its current PBIT. While its current gearing of 84% is higher than its peers, potential exercises, such as value unlocking of its Australian logistics portfolio, should enable the group to recycle some capital for its capex needs and act as a catalyst for its share price.

We maintain our Add rating with an unchanged RNAV-backed target price of S$2.04.

Source: CIMB
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Re: Fraser Centrepoint

Postby winston » Thu Mar 03, 2016 3:11 pm

not vested

Frasers Centrepoint Limited (FCL SP) - En route to fourth REIT

1QFY16 core PATMI fell 38.0% YoY (-23.1% QoQ), to S$90.3mn, due largely to a fall in residential contributions from Australia, China
and Singapore as a result of timing differences and weaker sales performance.

While EBIT was down by a respective 56% and 54% from Development Properties and Frasers Property Australia, this was mitigated by a respective 16% and 59% improvement from Commercial Properties and Hospitality due to better REIT contributions and the acquisition of MHDV Group in Jun-15.

The group’s strategy to grow its recurring income has paid off, with EBIT from investment property comprising 82% of total, in line with its targeted 60-70%. FCL is considering listing a REIT in Singapore backed by Australian office and industrial properties.

Subsequently, FCL announced that while it is reviewing and exploring a REIT as one of the various strategic options to unlock its asset value, there is no certainty that the transaction will happen.

Source: JPM
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Re: Fraser Centrepoint

Postby winston » Wed Apr 06, 2016 10:39 am

not vested

Frasers Centrepoint Group
Reaching new frontiers

Hosted Frasers Centrepoint Limited and REITs to a property day in Bangkok

Portfolios positioned well to weather slowdown in economic conditions regionally

Ongoing and planned refurbishments to drive value and performance for commercial portfolio

Asset recycling a key theme for the group


Frasers Centrepoint Property Day in Bangkok. We hosted a Frasers Centrepoint Property Day in Bangkok, tailored for Frasers Centrepoint Limited (FCL) and its REITs – Frasers Centrepoint Trust (FCT), Frasers Commercial Trust (FCOT) and Frasers Hospitality Trust (FHT).

The group met over 30 investors during the event, who gained a better understanding of the group’s strategy and an update on the forward outlook given much discussed ongoing operational headwinds.

Key discussion points are as follows:


Theme 1 – Dynamic group with strong ability to weather slowing growth environment. Diversification remains a key strategy for the group. For FCL, the aim is to diversify its geographic base and grow its recurring revenues base to 60-70% of PBIT, which offer strong income visibility to investors.

This supports a high dividend yield of c.5%. Its S-REITs – FCT should see stable performance given its focus in the suburban retail sector while FCOT portfolio of Grade B and business park properties in Singapore is expected to weather the onslaught of new Grade A office space over the coming years.

FHT's performance, however, is likely to remain mixed, dragged down by the weak Singapore hotel outlook, partially offset by robust performance for its Japan and Australia hotels.


Theme 2 – Asset refurbishments across its commercial portfolio to boost value in the medium term. Planned asset refurbishments and upgrades across its portfolio (retail, office and hospitality) are expected to boost values and attractiveness to tenants when completed.

(i) FCL is currently spending S$50m on the upgrade of Centrepoint,
(ii) FCT will be undertaking a major refurbishment at Northpoint Asset in view of integration with an extension wing,
(iii) FCOT is looking to upgrade the ageing Alexandra Technopark and China Square Central to raise their attractiveness in view of competition while
(iv) FHT is planning to refurbish Novotel Rockfords Darling Habour and Crowne Plaza Kobe.


Theme 3 – Asset re-cycling and acquisitions. Another key focus for FCL and its REITs is to continue growing their portfolios to boost ROEs and distributions.

The recently acquired 35% stake in Golden Land Property Development PCL (GOLD) will allow the group to tap on its main shareholder expertise ipportunities, the plan is to regularly divest stabilised assets to their listed REITs in order to recycle capital.

Source: DBS

https://researchwise.dbsvresearch.com/R ... igjakfdhjg
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Re: Fraser Centrepoint

Postby winston » Wed May 11, 2016 7:28 am

not vested

Frasers Centrepoint tidies portfolio before Singapore float

Source: THE AUSTRALIAN

http://www.theaustralian.com.au/busines ... 55505ab96c
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