FrasersComm Updated Target Price following Q1 2011 result release

FrasersComm Updated Target Price following Q1 2011 result release:

Brokerage	Recommendation	Target Price (S$)	Date
DBS Vickers	BUY	1.05	25/04/11
OCBC	BUY	0.89	25/04/11

Latest updates at Stock Target Price.

Related Posts

• FrasersComm Q1 2011 Quarterly Earnings Report

FrasersComm Q1 2011 Quarterly Earnings Report

FrasersComm Q1 2011 Quarterly Earnings Report:

• Press Release
• Financial Statements
• Presentation Slides
• Property Statistics Presentation Slides
• Notes

 Key Points

• DPU for the reporting quarter is 1.61 cents. 
• FCOT achieved gross revenue of S$29.6 million which is comparable to a year ago. This was due to higher revenue contribution achieved for Central Park and KeyPoint as a result of an increase in occupancy rates, which was offset by the loss of revenue contribution from Cosmo Plaza following its divestment on 18 January 2011.
• Net property income increased by 1% to S$23.8 million, mainly attributable to higher income recorded for Central Park and KeyPoint combined with lower property operating expenses achieved for the quarter due to the divestment of Cosmo Plaza.
• A total distribution of 2.8639 cents per Unit and 2.7425 cents per CPPU for the first half of FY11 will be paid on 30 May 2011. The distribution books closure date for both the Units and CPPUs is 3 May 2011.
• Based on the last closing price of the Units of S$0.815 on 20 April 2011, the 1H FY11 DPU of 2.8639 cents represents an annualised yield of 7.0%. 
• Operationally, average occupancy rates for the portfolio grew by 5.9% to 97.7% as compared to last quarter. The robust occupancy rates were boosted by the rise in occupancy for both Singapore and Australia portfolio plus the divestment of Cosmo Plaza.
• NAV per unit of S$1.34 as at 31 Mar 2011.
• Gearing of 37.8% as at 31 Mar 2011.

Author's Note
The DPU of 2.8639 cents will be paid on 30 May 2011. Books closure is on 3 May 2011. This distribution includes DPU of 1.61 cents for the current reporting quarter and the DPU of 1.2539 cents for the previous quarter.

Note that the number of Units used to calculate the per unit figures such as DPU and NAV per unit has been adjusted for the effect of the consolidation of every five existing Units held by the Unitholders into one consolidated Unit pursuant to the completion of the Unit Consolidation on 11 February 2011.

Note that part of the distributable income of the reit needs to be distributed to unit holders of the CPPU (Convertible Perpetual Preferred Units), which is 2.7425 cents per unit for the latest distribution for first half FY11.

DPU was 1.2539 cents for the previous quarter, adjusted for the 5 to 1 Unit Consolidation on 11 February 2011.

Related Posts

• FrasersComm Q4 2010 Quarterly Earnings Report 
• FrasersComm Q3 2010 Quarterly Earnings Report
• Results Release 
• DPU History 

FrasersComm - Date of Result Release for Q1 2011

Updated date of Result Release for Q1 2011:

FrasersComm APR 21

Latest Update at Results Release.

Saizen, MLT update on impact of Earthquake to Japanese properties

Saizen, MLT update on impact of Earthquake to Japanese properties:

• Press Release By MLT
• Press Release By Saizen

Author's Note
The clearer assessment of the potential damage will probably need more time due to breakdown of telecommunications networks and power blackouts. Other REITs that have Japanese properties in their portfolio include Parkway Life Reit and Frasers Commercial Trust. Frasers Commercial Trust has just announced its divestment of Cosmo Plaza, a Japanese property, in Jan 2011, but it still has some other Japanese properties in its portfolio. AIMSAMPI Reit has announced the divestment of its only property in Japan in Feb 2011. The divestment is expected to be completed in Mar 2011.


Related Posts

• AIMSAMPI Reit Sells Asahi Ohmiya Warehouse in Japan Above Book Value 
• FrasersComm Divests Cosmo Plaza in Osaka Japan

FrasersComm Q4 2010 Quarterly Earnings Report

FrasersComm Q4 2010 Quarterly Earnings Report:

• Press Release
• Financial Statements
• Presentation Slides

Key Points

• DPU of 0.25 cents for the reporting quarter.
• After accounting for distribution to Series A Convertible Perpetual Preferred Units (“CPPU”) holders of S$4.7 million, amount available for distribution to Unitholders is S$7.9 million, an increase of 6.7% from a year earlier. 
• There is no distribution payment this quarter as FCOT distributes semi-annually.
• Gross revenue was S$29.0 million, 2.3% lower as compared to a year ago. This was mainly due to lower contribution from Cosmo Plaza as a result of the expiry of a significant tenancy in August 2010. 
• Correspondingly, net property income was 2.4% lower at S$22.9 million. 
• FCOT successfully completed the divestment of Cosmo Plaza on 18 January 2011. If the financial results for Cosmo Plaza were to be excluded, the net property income for the financial quarter would be comparable to that of last year on the same basis.
• NAV per unit of $0.27 as at 31 December 2010.
• Gearing of 39.8% as at 31 December 2010. This will drop to 38% after sale of Cosmo Plaza.

Author's Note
The DPU for the reporting quarter is 0.25 cents. There is no distribution payment this quarter as FrasersComm distributes semi-annually.

The DPU was 0.31 cents in the previous quarter.

Related Posts

• Results Release 
• DPU Information Page  
• FrasersComm Q3 2010 Quarterly Earnings Report

FrasersComm Divests Cosmo Plaza in Osaka Japan

FrasersComm Divests Cosmo Plaza in Osaka Japan:

• Press Release
• Announcement

Key Points

• Share transfer agreement with Ippan Shadan Hojin Future Flight (“Future Flight”) for the sale of 2 common shares (tokutei shusshi) in Frasers Commercial Osaka No.1 TMK (the “Osaka TMK”), which constitute 100.0% of the issued and outstanding common shares in Osaka TMK, and 2 shares (kabu) in Frasers Commercial Master Lessee KK (“Osaka MLKK”), which constitute 100.0% of the issued and outstanding shares in Osaka MLKK, for an aggregate consideration of JPY2 (less than S$1 ).
• Agreement with Credit Suisse Principal Investments Ltd. (“CS Principal”) for the sale of an aggregate of 65,964 preference shares (yuusen shusshi) in Osaka TMK, which constitute 100.0% of the issued and outstanding preference shares in Osaka TMK, for an aggregate consideration of JPY2 (less than S$1 ).
• The net asset value of Osaka TMK and Osaka MLKK as at 30 September 2010 was negative JPY468.7 million (S$7.34 million ).
• The Divestment will result in a gain of JPY468.7 million (S$7.28 million).
• Upon the completion of the Divestment, FCOT and its relevant subsidiaries will have no further interest in Cosmo Plaza, the Osaka TMK and the Osaka MLKK.
• The Divestment would result in a reduction in FCOT’s aggregate leverage from 39.6% to 37.6% based on the audited financial statements of FCOT as at 30 September 2010. 
• Occupancy rate for FCOT’s portfolio as at 30 September 2010 would have improved from 90.8% to 96.5% assuming the Divestment had been completed on 30 September 2010.

Related Posts

• FrasersComm Proposes Consolidation of Units - 9 NOV 2010

FrasersComm, FrasersCT - Date of Result Release for Q4 2010

Updated date of Result Release for Q4 2010:

FrasersCT   JAN 24

FrasersComm  JAN 26

Latest Update at Results Release.

Updated Target Price by OCBC for various Reits

Updated Target Price by OCBC:

REIT	Recommendation	Target Price (S$)	Date
AscendasReit	HOLD	2.210	10/12/10
AscottReit	BUY	1.380	10/12/10
CapitaComm	HOLD	1.520	10/12/10
CapitaMall	HOLD	2.050	10/12/10
FrasersComm	BUY	0.180	10/12/10
FrasersCT	HOLD	1.500	10/12/10
LippoMapleTrust	BUY	0.590	10/12/10
MapleTreeLog	BUY	1.000	10/12/10
Starhill Gbl	BUY	0.660	10/12/10
Suntec	HOLD	1.500	10/12/10

 
Latest updates at Stock Target Price.

FrasersComm, SUNTEC Updated Target Price

FrasersComm, SUNTEC Updated Target Price:

FrasersComm	OCBC	BUY	0.170	23/11/10
Suntec	OCBC	BUY	1.630	19/11/10

Latest updates at Stock Target Price.

FrasersComm Proposes Consolidation of Units - 9 NOV 2010

FrasersComm Proposes Consolidation of Units:

• Press Release

Key Points

• Consolidation of every five existing units in FCOT held by unitholders of FCOT as at a books closure date into one Unit. 
• The number of Consolidated Units which Unitholders will be entitled to will be rounded down to the nearest whole Consolidated Unit and any fractions of Consolidated Units arising from the Proposed Unit Consolidation will be disregarded. 
• Each Consolidated Unit will rank pari passu with each other.
• Rationale for the proposed unit consolidation:
• improvement in the market perception and attractiveness of FCOT and the Units
• reduction of the magnitude of volatility of FCOT’s Unit trading price and market capitalization

Author's Note

What I can gather from the press release:

1. If you are holding 1000 units of FCOT, then it will become 200 units.
2. If you are holding odd lots of say 996 units of FCOT, then the 995 units will become 190 units. The remaining 1 unit will be disregarded.
3. Though it is not explicitly mentioned, the consolidated unit should be worth 5 times the original price if we do not take the disregarded units into account. Based on the closing price of S$0.170 on 9 Nov 2010, the pricing of the new unit should be S$0.850. But this needs further clarifications from the manager as we do not know whether the number of disregarded units will have any significant impact.

This consolidation exercise will be subjected to unit holders' in an EGM to be convened. The date for the EGM and the book closure date for the consolidation exercise will be announced later.

FrasersComm Q3 2010 Quarterly Earnings Report

Q3 2010 results for FrasersComm:

• Press Release
• Financial Statements
• Note
• Presentation Slides
• Presentation Slides for Property Statistics

Key Points

• DPU for the reporting quarter is 0.31 cents. 
• Gross revenue for the financial year grew by 21% to S$117.9 million. 
• The growth was driven mainly by the full year contribution from Alexandra Technopark, and the strengthening of the Australian Dollar. 
• Net property income rose 25% to S$93.0 million in line with the strong revenue growth.
• Distribution Per Unit (“DPU”) for the full financial year was 1.12 cents, up by 29% from a year earlier. Based on the last closing price of the Units of S$0.165 on 21 October 2010, this represents a yield of 6.8%. 
• A total distribution of 0.5549 cents per Unit and 2.7575 cents per CPPU for the second half FY10 will be paid on 29 November 2010. 
• The distribution books closure date for both the Units and CPPUs is 2 November 2010.
• Higher average occupancy rates have been achieved for the Singapore and Australia properties which increased from 95.5% to 96.1% and 96.3% to 98.8% respectively.
• The net asset value (“NAV”) per Unit was S$0.27 as at 30 September 2010 up from S$0.26 a quarter ago.
• As at 30 SEP 2010, Total Assets is S$2,094,108m, Total Debt is S$828,461m, and gearing is at 39.6%.

Author's Note
The DPU of 0.5549 cents will be paid on 29 Nov 2010. Books closure is on 2 Nov 2010. This distribution includes DPU of 0.31 cents for the current reporting quarter and the DPU of 0.25 cents for the previous quarter.

Note that part of the distributable income of the reit needs to be distributed to unit holders of the CPPU (Convertible Perpetual Preferred Units), which is 2.7575 cents per unit for the latest distribution for second half FY10.

Related Posts  
REIT Financial News - 1 FEB 2010: FCOT Offer for Sale of 116,789,400 Series A CPPUs

FrasersComm - Date of Result Release for Q3 2010

Updated date of Result Release for Q3 2010:

FrasersComm    Oct 22 

Latest Update at Results Release.

Stock Target Price - Updated Target Price for FCOT following its 2Q 2010

Updated Target Price for FCOT following its 2Q 2010 Earnings Results:

DBS Vickers	HOLD	S$0.16	29/07/10
Phillip Securities	HOLD	S$0.17	30/07/10

Latest updates at Stock Target Price.

REIT Financial News - Q2 2010 Quarterly Earnings Report for FCOT

Second quarter 2010 results for Frasers Commercial Trust:

• Press Release
• Financial Statements
• Presentation Slides

Key Points

• Distribution Per Unit (“DPU”) for the quarter is 0.25 cents.
• Total DPU year-to-date for the last three quarters amounted to 0.81 cents, an increase of 21% compared to the same period last year. This translates to a distribution yield of 7.2% based on the last closing price of the Units of $0.15 on 27 July 2010 and the annualised DPU of 1.08
  cents. 
• There is no distribution payment this quarter as FCOT distributes semi-annually.
• Portfolio occupancy rate as at 30 June 2010 is 93.1%, up 0.7% from the previous quarter.
• Total distributable income was up by 123% year-on-year from S$5.6 million to S$12.4 million.
• Distributable income to Unitholders increased by 39% to S$7.7 million. 
• S$4.7 million is available for distribution to Series A Convertible Perpetual Preferred Units (“CPPU”) holders.

Author's Note
The DPU of 0.25 cents will be paid together with the DPU of the next quarter as FCOT has a semi-annual distribution policy.

The DPU was 0.32 cents for the previous quarter.

Stock Target Price - Updated Target Price for Frasers Comm by Phillips Securities following Q1 2010 results

Updated Target Price and Recommendation for Frasers Commercial Trust following release of Q1 2010 results:


Phillips Securities BUY S$0.180


Latest updates at Stock Target Price.

Stock Target Price - Updated Target Price for Frasers Comm by DBS following Q1 2010 results

Updated Target Price and Recommendation for Frasers Commercial Trust following release of Q1 2010 results:


DBS HOLD S$0.160


Latest updates at Stock Target Price.

REIT Financial News - 22 APR 2010: Quarterly Earnings Report for Frasers Comm

First quarter 2010 results for Frasers Commercial Trust:

• Press Release
• Financial Statements
• Presentation Slides

Key Points

• FCOT achieves an 82% increase in distributable income for 2Q DPU up 78%; total distributable income (including CPPU) up 167%.
• Total distributable income was up by 167% year-on-year from S$5.42 million to S$14.48 million, of which S$4.65 million is available for distribution to Series A Convertible Perpetual Preferred Units (CPPU) holders.
• Distributable income to Unitholders increased by 82% to S$9.84 million.
• DPU of 0.32 cents, up by 78% from a year earlier and by 33% when compared to the preceding quarter.

Author's Note
Including the DPU of 0.24 cents in the previous quarter, the total DPU of 0.56 cents will XD on 29 Apr 2010 and will be paid on 27 May 2010.

Based on the last closing price of the Reit of $0.14 on 22 April 2010, the semi-annual 0.56 cents translates to an annualised yield of 8.0%. The latest quarterly DPU of 0.32 cents translates to an annualised yield of 9.14%.

REIT Financial News - 1 FEB 2010: FCOT Offer for Sale of 116,789,400 Series A CPPUs

Frasers Commercial Trust - Offer for Sale of 116,789,400 Series A CPPUs and Notice of Books Closure Date for the Series A CPPU Offering. See report.

Author's Note
Reporting this piece of news a few days late as I would like to share some thoughts about this offer. There is not much information about the Series A CPPU in the latest report filed in SGX. But more information could be found in the following reports filed in SGX last year, when the CPPU was first offered to institutions:

• Proposed Transactions and Receipt of Approval in-Principle for the Listing of the Rights Units and Conversion Units in Frasers Commercial Trust (30 JUN 2009)
• Completion of Acquisition of Alexandra Technopark and Issue of 342.5 million Series A Convertible Perpetual Preferred Units and 2,251,989,879 New Units in Frasers Commercial Trust (26 AUG 2009)

The latest offering is for existing FCOT unit holders, who are entitled to purchase one Series A CPPU for every 20 existing Units at S$1 per CPPU unit. Unlike the DPU for FCOT units which may vary, the DPU for CPPU unit is at a fixed amount. Based on the rate of 5.5% over the offer price of S$1, CPPU unit holder should get a fixed amount of 5.5 cents per unit per year.

From the point of view of the Trust, this is like a fixed interest borrowing of S$116.7 million at 5.5% per annum. The estimated payment for the CPPU units in this offer will come up to about S$6.4 per annum. If we include the CPPU units previously offered to institutions, the total of 342,500,000 CPPU units will require FCOT to pay about S$18.8 million per annum. Thus this new offer will likely reduce the DPU of existing FCOT unit holders since part of the distributable income will be used to pay the CPPU unit holders, unless the S$116.7 million raised could be used to purchase assets that can generate more than 5.5% per annum, or used to repay debts that are at a interest rate of more than 5.5% per annum.

Stock Target Price - Updated Target Price for K-Reit Asia and FrasersComm

DBS Vickers raise target price of K-Reit Asia from 1.11 to 1.13 following news of its Australian acquisition.

Philips Securities upgrades Frasers Commercial Trust to Buy with target price of 0.18.

Latest updates at Stock Target Price

All about REIT - The Basics Part 6: Property Types and Geographical Location

REITs can be distinguished by property types and geographical location. Currently there are 5 main property types for SREITs, namely healthcare, retail, office, industrial, and hospitality. Geographical location wise, most of the SREITs are Singapore-centric, and some have regional exposure mainly in the asia pacific region.

Different property types and geographical location also mean different level of risk. The risk level will in turn translate to the stock price volatility of the REIT. The higher the risk, the stock price will usually be more volatile, i.e. high beta. Following is the general ranking of the risk level of REITs by property types, based mainly on the volatility of its rental income and how much it is correlated to the business cycle (From the highest to lowest in risk level):

1) Hospitality
2) Office and Industrial
3) Retail
4) Healthcare

Hospitality Reit
Currently there are 2 listed hospitality Reit, CDL H-Trust and Ascott Reit.

The portfolio of Ascott Reit is made up of serviced apartments. It is one of the more geographically diversified Reits, with properties in developed markets such as Singapore, Australia and Japan, and also emerging markets such as Vietnam, China, Indonesia and The Philippines.

The portfolio of CDL H-Trust consists of hotels and one relatively small retail property, namely the Orchard Hotel Shopping Arcade. Almost all its hotels are located in Singapore, except for one in New Zealand.

In terms of property types, hospitality sector is usually deemed as the most risky because the length of stay in the properties is usually short term. We can look at the price movement of CDL H-Trust to get an idea. Despite having a relatively low gearing of 19%, since the begining of the financial crisis, its share price has dropped from above the $1.5 level all the way down to $0.415 in March 2009. Yet when market started to turn better, it was one of the best performing REIT, with its stock price going even higher than pre-Lehman level. Recently the price has broken the 52 weeks high above the $1.70 level. This really does fulfil the saying of high risk high return.

Office Reit
CapitaCommercial Trust, K-Reit Asia, and FrasersCommercial Trust are some of the listed office Reits.

The portfolio of CapitaCommercial Trust includes mainly offices. The properties it owns directly are all in Singapore, but it does have some exposure in Malaysia through its stake in the Quill Capita Trust (“QCT”), a REIT listed in Bursa Malaysia which owns commercial properties in Malaysia.

K-Reit Asia owns offices in Singapore. Currently it does not have exposure in other countries.

The portfolio of FrasersCommercial Trust includes mainly offices. The properties are located across Singapore, Australia and Japan. It also owns Alexandra Technopark, which is essentially an industrial building, albeit a high-tech one. It also has some exposure in retail properties indirectly through its stake in Allco Wholesale Property Fund, which has exposure to both office and retail sectors in Sydney.

Industrial Reit
Ascendas Reit, MapleTree Logistics Trust, Cambridge Industrial Trust and MacArthurCook Reit are the 4 listed industrial Reits.

Ascendas Reit is a pure Singapore play, with its portfolio of industrial properties such as Business and Science Parks, Logistics and Distribution Centres, and Hi-Tech Industrial buildings.

MapleTree Logistics Trust owns mainly logistics properties. It is one of the more geographically diversified Reits with properties in 6 countries, namely Singapore, Malaysia, China, Hong Kong, Japan, and South Korea.


Cambrige Industrial Trust owns industrial properties which are all in Singapore. Its properties include warehouses, light industrial buildings, car showrooms and workshops.

MacArthurCook Industrial Reit owns industrial properties mainly in Singapore. It also has a warehouse property in Japan.

Retail Reit
CapitaMall Trust, CapitaRetail China Trust, FrasersCentrepoint Trust, Fortune Reit, LippoMaple Indonesia Trust, and Starhill Global Reit are some of the listed retail reits.

The portfolio of CapitaMall Trust includes mainly shopping malls in Singapore. It has some exposure to China through its 20% stake in the CapitaRetail China Trust, another listed Reit. It also has some office properties in Raffles City, etc, which forms a very small part of its overall portfolio.

The portfolio of CapitaRetail China Trust includes shopping malls in China. As the name implies, it is a pure China play.

The portfolio of FrasersCentrePoint Trust includes shopping malls in Singapore, mainly in the suburbs.

The portfolio of Fortune Reit includes shopping malls in Hong Kong. It is currently still a pure Hong Kong play, though its management has expressed before its interest to expand into China.

The portfolio of LippoMaple Indonesia Trust includes shopping malls in Indonesia.

The current portfolio of Starhill Global Reit includes mainly shopping malls in Singapore, Japan and China. With the recently announced acquisition plan, it will be expanding its geographical reach to Australia and Malaysia, making it the most geographically diversified Retail Reit listed here. It is not called a "Global Reit" without reason. A small part of its portfolio also includes office properties, including those in Ngee Ann City and Wisma Atria.

Healthcare Reits
Currently there are 2 listed healthcare Reits, Parkway Life Reit and First Reit.


The portfolio of Parkway Life Reit includes mainly hospitals in Singapore, namely Mount Elizerbeth, Gleneagles, and Eastshore. It also owns a number of medical facilities and nursing homes in Japan.

The portfolio of First Reit includes mainly hospitals and a hotel in Indonesia. It also owns some nursing homes and a hospital in Singapore.

Office and Retail Reits
Suntec Reit has significant ownership of both office and retail properties. So it is difficult to classify it either as a office or a retail reit. All its properties are located in Singapore, bulk of which are located in Suntec City.

Related Posts

• All about REIT - REIT, Business Trust, and Shipping Trust
• All about REIT - The Basics Part 5: Sponsors
• Other articles from All about REIT