Frasers Commercial ( formerly Allco REIT )

Re: Frasers Commercial ( formerly Allco REIT )

Postby winston » Fri Mar 08, 2013 8:19 pm

vested

Time: 3:21PM
Exchange: SGX
Stock: Frasers Comm(ND8U)
Signal: Resistance - Breakout with High Volume
Last Done: $1.335


Source: UOBKH
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: Frasers Commercial ( formerly Allco REIT )

Postby winston » Fri Mar 08, 2013 8:39 pm

Frasers Commercial Trust: DPU gets another thrust

Frasers Commercial Trust (FCOT) announced that it has successfully exercised the right of redemption for 157.1m Series A Convertible Perpetual Preferred Units (CPPUs).

While this move is not expected, we expect it to result in an improvement in FCOT’s DPU.

Furthermore, this would remove any uncertainty pertaining to a possible dilution in unit base from a conversion of the CPPUs.

The only trade-off, in our view, would be a higher aggregate leverage, which we believe would rise from 29.2% as at 31 Dec 2012 to ~40% assuming the CPPU redemption is fully funded by debt.

We now project a full CPPU redemption in our model, as it may no longer be economical for FCOT to retain the remaining CPPUs.

This raises our fair value from S$1.48 to S$1.52. Maintain 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: Frasers Commercial ( formerly Allco REIT )

Postby winston » Tue Mar 19, 2013 8:46 pm

vested

Time: 12:03PM
Exchange: SGX
Stock: Frasers Comm(ND8U)
Signal: Resistance - Breakout with High Volume
Last Done: $1.38

Source: UOBKH
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: Frasers Commercial ( formerly Allco REIT )

Postby winston » Thu Apr 11, 2013 6:27 am

vested

Time: 12:46PM
Exchange: SGX
Stock: Frasers Comm(ND8U)
Signal: Resistance - Breakout with High Volume
Last Done: $1.49


Source: UOBKH
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: Frasers Commercial ( formerly Allco REIT )

Postby winston » Tue Apr 30, 2013 8:22 pm

vested

Time: 2:45PM
Exchange: SGX
Stock: Frasers Comm(ND8U)
Signal: Resistance - Breakout with High Volume
Last Done: $1.56

Source: UOBKH
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: Frasers Commercial ( formerly Allco REIT )

Postby winston » Fri Jun 07, 2013 7:36 pm

vested

Frasers Commercial Trust: Development opportunity resurfaced

Frasers Commercial Trust (FCOT) announced that it has successfully exercised its right of redemption in respect of 2.2m Series A Convertible Perpetual Preferred Units (CPPUs). This, together with the redemption of 157.1m CPPUs in Apr, is likely to provide FCOT with further DPU uplift going forward.

We also understand that FCOT has been granted a provisional permission (PP) by URA for the proposed additions and alterations to the existing commercial development at China Square Central and erection of a new hotel block on 18 Cross Street, Singapore earlier this week.

While FCOT highlighted that it is still in the preliminary stage of exploring all options with regard to the property, we believe FCOT may possibly divest the hotel space or capitalize on its sponsor’s capabilities to develop the hotel.

Either way, we are positive on the news as FCOT could use the proceeds from a sale to pare down its aggregate leverage or enhance its growth profile through the development.

We continue to like FCOT for its growth potential, proactive management approach and compelling P/B of 0.97x.

We are keeping our forecasts unchanged but we now tweak our CAPM assumptions to reflect a higher risk-free rate.

Maintain BUY with revised fair value of S$1.60 (S$1.66 previously) on FCOT.


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: Frasers Commercial ( formerly Allco REIT )

Postby winston » Mon Sep 30, 2013 7:17 pm

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Improvement in industry datapoints

In our S-REITs sector report dated 9 Sep 2013, we note that office rents were flat in 2Q13 after seeing moderating rates of decline over the past few quarters, hence leading us to believe that the office market may just be on the cusp of recovery.

According to the latest report by DTZ, sequential rental increments of 1.3%-3.4% were indeed seen within the CBD in 3Q13 on the back of better occupancy rates.

This is consistent with our view that office leasing activity is likely to remain healthy.

We maintain our BUY rating on FCOT, but to reflect the higher risk-free rate and beta on FCOT, we trim our fair value from S$1.58 to S$1.45.

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: Frasers Commercial ( formerly Allco REIT )

Postby winston » Fri Oct 18, 2013 4:41 pm

Vested

Time: 9:56AM
Exchange: SGX
Stock: Frasers Comm(ND8U)
Signal: Bullish MACD Crossover
Last Done: $1.27


Source: UOBKH
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: Frasers Commercial ( formerly Allco REIT )

Postby winston » Fri Oct 25, 2013 2:52 pm

vested

Frasers Commercial Trust - Likely further recovery after conquering resistance

Resistance: S$1.42
Support: S$1.28

Last Closing Price: S$1.295
52-week Px Range: S$1.17 - S$1.595

SGX Code: ND8U
BLP Code: FCOT SP Equity


Source: OCBC
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Re: Frasers Commercial ( formerly Allco REIT )

Postby winston » Tue Nov 12, 2013 7:38 pm

vested

Frasers Commercial Trust

Frasers Commercial Trust (FCOT) is a developer-sponsored commercial real estate investment trust. FCOT invests primarily in quality income-producing commercial office properties in both Singapore and Australia, with its current portfolio consisting of China Square Central, 55 Market Street, Alexandra Technopark, Caroline Chisholm Centre and Central Park.

Enjoying a sustainable stream of distributions. We like FCOT for the sustainability of its distributions, which is supported by its well-diversified lease expiry profile, built-in rents and its blue-chip tenant profile.

Embarking on a growth path. More importantly, FCOT is expected to witness a significant uplift in its distributions in FY14 and FY15. Drivers behind the projected distribution growth include the full-year impact of the redemption and conversion of convertible perpetual preferred units (CPPUs) in FY13, expiry of master lease at Alexandra Technopark and positive rent reversions across its portfolio assets. Moreover, we note that FCOT has a visible acquisition pipeline, which could provide it with an additional layer of growth.

Given that FCOT’s CPPUs are held at a cost of 5.5% per annum, the redemption and conversion of CPPUs in FY13 means that a significant overhang on the underlying distributions has been removed. Meanwhile, when its master lease at Alexandra Technopark expires, FCOT will be able to command higher current market rents and this is estimated to translate into an additional NPI of S$5.0mil from Alexandra Technopark.

Attractive valuations. FCOT’s FY14 yield is projected at 7%, which makes it a very attractive yield play among the office REITs (average yield 5.9%). On a price-to-book (P/B) basis, FCOT also looks relatively more attractive to its REITs and business trust peers, with a P/B ratio of 0.87 (REITs average P/B is 0.98).

Initiate with a BUY. We initiate coverage on FCOT with a BUY recommendation and a FV of S$1.47. This implies a total potential return of 21.4%.


Source: AmFraser
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