Fraser Property (former Fraser Centrepoint)

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vested

Frasers Centrepoint (S$1.645): Hit by one-off items

One-off items led net profit at Frasers Centrepoint Ltd (FCL) to fall 31% to S$500.7mil for the full year ended Sept 2014.

This was largely due to an exceptional loss of S$127mil this year. "The one-off expenses were largely due to the restructuring costs of S$42mil arising from the repayment of related company loans prior to FCL's listing, and Australand acquisition costs of S$70mil," said FCL.

Also accounting for the profit drop was the fall in fair-value gains from S$275.7 mil S$126.2 million.

FCL's revenue jumped 33% to a record S$2.73bil, fuelled by completions of overseas development projects in Australia, China and the United Kingdom.

FCL's cost of debt as at end-September was 2.8%, primarily due to a lower percentage of fixed rate debt in its portfolio.

It has declared a final dividend of 6.2 Singapore cents.

Source: AmFraser

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vested

Time: 10:24AM
Exchange: SGX
Stock: Frasers Cpt(TQ5)
Signal: Bullish MACD Centerline Crossover
Last Done: $1.665

Source: UOBKH

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Frasers Centrepoint expands hospitality business in China

Singapore (Jan 9): Frasers Centrepoint's hospitality arm is expanding its reach in China.

Frasers Hospitality will have an additional 10 serviced residences in Tianjin, Nanchang, Hefei, Dalian, Kunming, Wuxi and Chengdu by 2017, it said in a statement.

Another two properties will be added in Shanghai and Shenzhen.

More than 2,400 apartments will be available when the new serviced residences open for business, giving Frasers Hospitality a total of 26 properties with over 5,900 units in China.

Frasers Hospitality first set foot in China in 2005.

Contributions from China, South Korea and Japan currently account for one-third of its total revenue.

Frasers Centrepoint shares ended 0.3% higher at $1.665 yesterday.

Source: The Edge

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vested

Time: 11:32AM
Exchange: SGX
Stock: Frasers Cpt(TQ5)
Signal: Bullish MACD Crossover
Last Done: $1.685

Source: UOBKH

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Frasers Centrepoint ($1.66, down 1.0 cent) announced that Sinomax International (Sinomax), an indirect wholly-owned subsidiary of the Company, has entered into a conditional agreement to sell its entire shareholding interest in Beijing Sin Hua Yan Real Estate Development (BJSHY) to Beijing Haina
Junan Investment.

The completion of the divestment is subject to the fulfilment of certain conditions as set out in the Agreement, unless waived.

BJSHY is a China-based company that owns a retail mallcum-office building with a net lettable area of 156,336 square feet known as “Crosspoint” located along the Second Ring Road in Beijing.

We believe the divestment is in line with the group’s strategy to further streamline and divest its non-core business to focus on the main activities.

The consideration for the sale of Sinomax’s entire shareholding interest in BJSHY is approximately RMB357.4 mln (approximately S$76.6 mln), and will be settled in cash on the occurrence of stipulated events as set out in the Agreement.

The consideration was arrived at on a willing-buyer, willing seller basis, and based on the unaudited NAV of BJSHY as at 31 July 2014, taking into account the valuation of the Property.

Assuming that the divestment had been completed on 1 Oct 2013 and taking into account the gain on disposal, the earnings per share (after fair value change and exceptional items) of the group for the financial year ended end-Sept 2014 would increase from 20.4 cents to 21.6 cents.

Source: Lim & Tan

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not vested

Frasers Centrepoint Limited
Analyst Briefing Key Takeaways

Fraser Centrepoint Limited ("FCL") announced its 1Q FY14/15 results on 12 February after market close.

We dialled-in to the Analyst Briefing that was held on 13 February morning and these are the key takeaways.

An exceptional quarter for Australia residential revenue – For 1Q FY14/15, FCL realised a superior performance for Frasers Australand attributed to the significant completion of over 750 apartments in the quarter. The management highlighted there will be lumpiness in the revenue performance due to revenue recognition upon completion for Australia residential. Looking at the expected completion pipeline, the earnings for Frasers Australand should be lower for coming quarters.

Not in a rush for China expansion – At the moment, the management is adopting a cautious approach to expand the China portfolio due to the high degree of volatility in the restructuring market. With sizeable China landbank on hand, FCL will stay active while looking out for good valued opportunities.

Next upcoming project Northpark Residences – The launch of Northpark Residences is estimated to be in June next quarter. Amidst the current weak residential market, the management is confident that the project will be well-received with its well connectivity to public transport and unique local attributes.

Reduced gearing ratio; 55% of debt fixed – FCL has reduced its gearing ratio to 83.4% from 95% previous quarter. In view of rising interest rate environment, the percentage of fixed rate debt improved to 55%. Consequently, the effective cost of debt increased marginally to 2.9%. The average weighted of debt maturity is of 3.3 years with only 3% due this year.

FCL is in good position to manage the gearing with the visible earning cash flows. Moving forward, FCL may increase Australia borrowings to leverage on the weak AUD.

Recycling strategy – Possible divestments of hospitality assets to Fraser Hospitality Trust (FHT).


Source: Phillips

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not vested

Frasers Centrepoint Ltd (FCL) registered a strong start to 1Q15, underpinned by contribution from Australand.

Looking ahead, locked-in unrecognized revenues of S$3.9bn are expected to underpin growth while capital recycling is a spark to re-rate stock.

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

FCL is trading at cheap valuations. Maintain BUY, target price S$ 2.02 (Prev S$ 2.05).

Source: DBS

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not vested

Frasers Centrepoint Ltd - Execution on track

FCL posted a largely in-line set of 1QFY15 results, with growth coming from better performances across most of its operating units, particularly in Australia
and China.

1QFY9/15 EPS formed 24% of our FY15 estimate. However, we lower our FY15-16 earnings by 2-5% to reflect a lower A$.

Looking ahead, planned new residential launches in Singapore such as Northpark Residences in addition to strong unrecognised presales of S$3.6bn should underpin its profits.

Apart from looking for growth opportunities in Singapore and Australia, the group remains selective in China.

We maintain Add with a slightly lower RNAV-based target price of S$2.02.

Key potential catalysts are asset recycling and earnings delivery.

Source: CIMB

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Valuation

We recommend BUY on FCL, with a target price of S$2.03 based on a 40% 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.

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

http://www.remisiers.org/cms_images/Res ... epoint.pdf

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Not vested

April 28, 2015

Asset recycling strategy to pay off

Recycling capital through proposed sale of 357 Collins Street for AUD$224m
Hotel development at China Square Central to reap rewards in the longer term
Maintain BUY, TP raised to S$2.36

Recycling capital through proposed sale of 357 Collins Street for AUD $224m.

Frasers Centerpoint Limited (FCL) has announced the proposed sale of 357 Collins Street in Melbourne for a consideration of AUD$224m (S$237m @ SGD:AUD exchange rate of 1.05) to its managed REIT, Frasers Commercial Trust (FCOT).

This is a prime property located in downtown Melbourne ( 95.5% occupancy rate) and was part of the c.A$1.2bn commercial portfolio when the group acquired Australand. The purchase price approximates the book value of the property as of Sept’14.

Post sale, FCL will derive recurring income through higher management fees as Manager of FCOT.


A new ‘Capri by Fraser’ hotel to rise in China Square Central.

FCL will also acquire the development rights and 80-year remaining leasehold interest for a 16k sqm GFA site which is zoned for hotel development at China Square
Central (CSC). The plan is for an integrated development at the site with a new c.300 hotel wing. We understand that there will be a new ‘Capri by Fraser’ upon completion of this development.

Our back-of-the envelop calculation indicates total development cost of c.S$238m (inclusive of DC premium, construction cost), which we expect to be fully funded from internal resources or from the sale proceeds from the property at 357 Collins Street.


Asset recycling strategy in motion; TP raised to S$2.36.

We remain excited about the prospects of the group and with a myriad of opportunities from recycling capital from its portfolio of stabilized properties (hotel, office and retail) to its listed REITs.

We expect more of such recycling activities to feature going forward and thus cut our RNAV discount rate from 40% to 30%, leading to a higher TP of S$2.36.

Source: DBS