Frasers Property (formerly: Frasers Cpt (FCL))

Wow... Guess a lot of the minorities must be pleased and it's only 40++% payout.

(12-11-2014, 11:25 PM)piggo Wrote: Wow... Guess a lot of the minorities must be pleased and it's only 40++% payout.

should be able to support the share price for the period and inject some positivity into the market to digest the report.

This is a small example in Australia that I m sure that FCL-ALZ management is aware of. Stay tune for value extraction at ALZ...

Divided portfolio attracts top price
BEN WILMOT THE AUSTRALIAN NOVEMBER 13, 2014 12:00AM

QUINTESSENTIAL Equity has become the latest group to split up an industrial and office property portfolio with the group finding separate buyers for about $70m worth of assets.

The group went to market with a portfolio of five properties worth more than $90m earlier this year.

The portfolio was a mix of office and industrial assets in Sydney, Melbourne and Adelaide and is being handled by Colliers International, with conjunctional agents, including Knight Frank.

While the portfolio attracted strong interest as a whole the better outcome was to sell each asset individually, property executives said.

The portfolio comprises office properties at Parramatta and Lane Cove in Sydney, and industrial properties in Noble Park and Dandenong South in Melbourne, and one in Port Adelaide.

The two commercial office buildings — 87 Marsden Street, Parramatta, and 166 Epping Road, Lane Cove West, both in NSW — are believed to be part of the early sales.

An industrial property at 13 Webb Street, Port Adelaide, has also been tagged for a prompt sale. Two industrial properties in Melbourne, 180 Browns Road, Noble Park, and a property at 269-271 Frankston-Dandenong Road in Dandenong South, are tipped to go to separate buyers at a later stage.

Gavin Bishop, Tony Iuliano and Tim Russell of Colliers International are handling the sales but were uncontactable yesterday. Quintessential director Shane Quinn declined to comment yesterday.

Other major portfolio sales are also close. In North Sydney, investment group Marshall Property is close to buying a 12-level office building for more than $45m from Altis Property. The building is part of a portfolio from which Mirvac bought five properties for $224.1m.

Colliers International handled that portfolio, with CBRE and Chesterton International, working on individual assets.

seems like FCL has alot going on in future...

Some points from the FY2014 presentation that caught my attention..
1) Australand has 1.7bil worth of unrecognised revenue from sales of their residential property.. there are 12 residential projects to be completed in FY2015 and 15 commercial and industrial projects to be completed.. in fact on 1Q2015 alone there are 10 residential projects to be completed..FCL will receive a bulk of these cash nxt year..
2) FCL now has a substantial landbank in Aussie thanks to Australand...more importantly FCL now have commercial sites (total saleable area of more than 10mil sqf) for development and rental now...a capability that they do not have previously.
3) The 1 time cost of approximately 112mil related to FNN demerger and Australand acquitision is history now... there will be no such drag to FCL's earnings in FY2015.


.FY2015 is shaping up to be an interesting yr

Luckily Capland didn't share ALZ vision and SGP don't have Godfather Charoen's financial muscle and determination to capture ALZ for FCL...

(13-11-2014, 09:52 AM)toiletsiao Wrote: seems like FCL has alot going on in future...

Some points from the FY2014 presentation that caught my attention..
1) Australand has 1.7bil worth of unrecognised revenue from sales of their residential property.. there are 12 residential projects to be completed in FY2015 and 15 commercial and industrial projects to be completed.. in fact on 1Q2015 alone there are 10 residential projects to be completed..FCL will receive a bulk of these cash nxt year..
2) FCL now has a substantial landbank in Aussie thanks to Australand...more importantly FCL now have commercial sites (total saleable area of more than 10mil sqf) for development and rental now...a capability that they do not have previously.
3) The 1 time cost of approximately 112mil related to FNN demerger and Australand acquitision is history now... there will be no such drag to FCL's earnings in FY2015.


.FY2015 is shaping up to be an interesting yr

Not much movement in share price though! Got to dig some gold out from Australand before a significant change in share price can be observed.

FCL, cimb maintain ADD:


Company: FCL SP
Event: FY14 results above on strong overseas contributions
Recommendation Add
Share Price/Mkt. cap: S$1.585/S$4.6b
Target Price: S$2.12


What happened. FCL reported its FY14 core net profit of S$543m, above our and consensus full year forecast by ~14%. Full year revenue and PBIT increased 33% and 21% yoy, largely driven by completion of overseas development projects in Australia, China and UK. Divestment of Changi City Point to FCT also contributed to the increase. Attributable profit before fair value change and exceptional items was also up 25% yoy. However, lower fair value gain of S$126m (vs S$276m in FY13) and higher exceptional loss from restructuring and acquisition cost brought attributable profit down 31% yoy.

What we think.

* Strong set of results, overlook the exceptionals
This is a strong set of results, and largely from 1) higher overseas contributions, 2) higher contributions from FCT and FHT and 3) one-month of consolidation of Australand results. While one-off exceptional loss from restructuring and acquisition costs of ~S$112m brought attributable profit down yoy, we expect the acquisitions of Australand to contribute positively to FCL's bottomline next year onwards.

* Active capital recycling
A quick recap on what FCL has done in the past year reveals that it has been active on the capital recycling front, having 1) listed its hospitality assets through FHT, 2) divested Changi City Point to FCT and 3) acquired Australand. While the issuance of S$1.2b of perpetual securities will bring FCL's net gearing down to ~83% (a level management highlight as a comfortable range), we do not rule out further capital recycling in the year to come.




What you should do. Our previous recommendation is an Add. We will update with more details post the briefing and luncheon.
Regards
Tan Xuan
Equity Research
CIMB Securities Ltd
50 Raffles Place #19-00, Singapore Land Tower, Singapore 048623
Tel: +(65) 6210 8698 | Email: xuan.tan@cimb.com

1. Australand's $1.7bn unrecognised revenue is significant. So there are total of > $3.5Bn unrecognised revenue.
However, for Australia's sale of properties, I believe owners can back out. And there is no bank financing from exercise of option.
It is not like in SIngapore, when the bank underwrite the risk with the loan at signing.

2. In their results slide they mention (a) Continuing to Replenish Landbank in Australia (b) Looking for opportunities in China

Australand has a landbank > 6 yrs if I am right. To acquire in a bullish market? And after buying Australand they are scouting for acquisitions in China?

Indeed the appetite of an elephant... I hope they can guard their own back-side as much as grow the upside.

(13-11-2014, 10:28 AM)I_love_girls Wrote: Not much movement in share price though! Got to dig some gold out from Australand before a significant change in share price can be observed.

I guess most institutions are already vested or not considering fcl yet. Price mostly locked in.

Monitoring (no new funds avail yet!)

Sent from my D5503 using Tapatalk

The former Aussie generals of Capitaland are waiting for their chance to prove what they can to their former owners.

From the meeting yesterday, the "Goodman and GLP" niche capability of ALZ in terms of logistic / industrial experience have yet to be unleashed by ALZ beyond Australian shores. This will be a bonus.

Australia development can take forever. ALZ landbank is huge. Their replenishment can take a long time with application for approvals taking even more time. Note that a Sydney inner city development for Central Park took 7 years to complete the 1st phase... so what is the hurry and the worries...

No Worries Buddy
GG

(13-11-2014, 11:26 AM)Contrarian Wrote: 1. Australand's $1.7bn unrecognised revenue is significant. So there are total of > $3.5Bn unrecognised revenue.
However, for Australia's sale of properties, I believe owners can back out. And there is no bank financing from exercise of option.
It is not like in SIngapore, when the bank underwrite the risk with the loan at signing.

2. In their results slide they mention (a) Continuing to Replenish Landbank in Australia (b) Looking for opportunities in China

Australand has a landbank > 6 yrs if I am right. To acquire in a bullish market? And after buying Australand they are scouting for acquisitions in China?

Indeed the appetite of an elephant... I hope they can guard their own back-side as much as grow the upside.