Frasers CentrePoint Trust

(27-04-2015, 11:05 AM)kayhian Wrote:

(27-04-2015, 08:14 AM)palantir Wrote: Will Bedok Point be converted to F&B and Enrichment Centre so as to have a niche area? The traffic is quite pathetic as compared to Bedok Mall

Bedok Point enjoy great success as a F&B and Enrichment Centre. It would be silly to compete with Bedok Mall as a pure neighbourhood shopping mall.

Yup, it is better for Bedok Point to be a pro-family, children-friendly mall.

Frasers Centrepoint Trust: Sturdy set of results

Frasers Centrepoint Trust (FCT) reported gross revenue of S$47.5m and DPU of 2.963 S cents for its 2QFY15 results. This represented YoY growth of 15.9% and 2.9%, respectively, and was in-line with our expectations. Management managed to achieve positive rental reversions of 3.8% for 2QFY15. This was, however, softer than the 7.7% and 6.5% rental reversion figures recorded in 1QFY15 and FY14, respectively. The main drag came from Bedok Point. Overall portfolio occupancy remained resilient at 97.1%. Despite FCT’s strong share price performance YTD, we are reiterating our BUY rating and S$2.27 fair value estimate, which translates into potential total returns of 13.9%. We continue to like FCT for its strong balance sheet (gearing ratio of 28.6%; 87% of total debt hedged or on fixed rate basis) and defensive suburban malls portfolio. .(Wong Teck Ching Andy).

They are planning to acquire assets in Australia, share price tanked over the past week
http://sbr.com.sg/commercial-property/ne...pansion-ji

this is certainly not welcoming as we know the strength of FCT lies from its conservative balance sheet and defensive nature of its portfolio... I wonder what's the motive behind this....

http://www.businesstimes.com.sg/real-est...e=Facebook

Seems like its expected for Frasers Centrepoint to be more resilient during this retail downturn. Given that FCT malls tend to be stand alone at an MRT station area. Only competitor is in Bedok where Bedok Mall is the more popular choice. Don't really like the retail mall sector still

A relevant article for the retail mall owner...

(not vested)

Waning rents, tenant demand prompt malls' repositioning
22 Dec 2015 09:00
By Lynette Khoo

IN the heyday of the retail-property market, many landlords were eager to slice retail spaces into smaller units to lease out at higher rents per square foot. Now in the face of softening rents and dwindling tenant sales, some landlords are changing tack to lure back the bigger tenants they were once inclined to shoo away.

While this curating of tenant mix may lend support to mall occupancies and footfall, it will do little to reverse an anticipated fall in retail rents next year.

Projections for retail rental declines in 2016 go as far as 5 per cent, judging from consultants' estimates. For one thing, the looming supply of retail space is worrying.

Based on the past three-year average annual net demand for retail space island-wide and assuming a similar level of space take-up ahead, it will take close to four years to absorb the upcoming new retail space, Knight Frank head of research and consultancy Alice Tan said.

"With an estimated 2.44 million sq ft of gross retail space to be completed next year, the search for retailers to fill both existing and new spaces is slated to intensify," she said, pegging her average rent forecast in the Central Region to a 3-5 per cent drop for 2016.

Expecting up to a 3 per cent decline in retail rents island-wide next year, Chesterton Singapore's managing director Donald Han sees the same issues of manpower crunch, lower tourist arrivals and the strong Singapore dollar as well as competition from e-commerce continuing to plague retailers next year.
...
Source: Business Times

I think not all malls are the same. Tourist impacts in suburban malls are much lesser compared to those near City. And due to their essential needs, will not be surprise to see moderate rental increase. For those expecting lower occupancy maybe is the best time to do renovation.

1Q16 FCT

1Q16 DPU of 2.87 cents, up 4.4% year-on-year

1Q16 Property Expenses down 5.2% year-on-year.
Decrease due mainly to lower utility tariff rates, fewer maintenance works & replacements done in 1Q16

One surprise i found is the lower utility expenses. Are we beginning to see the benefits of lower energy cost ?

(25-01-2016, 11:24 AM)corydorus Wrote: 1Q16 FCT

1Q16 DPU of 2.87 cents, up 4.4% year-on-year

1Q16 Property Expenses down 5.2% year-on-year.
Decrease due mainly to lower utility tariff rates, fewer maintenance works & replacements done in 1Q16

One surprise i found is the lower utility expenses. Are we beginning to see the benefits of lower energy cost ?

CMT also reported lower utility expenses.
Both FCT and CMT grew gross revenue only marginally y-o-y.
It was the lower expenses (incl utility expenses) that drove dpu increases.
There are benefits to lower oil prices!

(22-12-2015, 09:30 AM)CityFarmer Wrote: A relevant article for the retail mall owner...

(not vested)

Waning rents, tenant demand prompt malls' repositioning
22 Dec 2015 09:00
By Lynette Khoo

IN the heyday of the retail-property market, many landlords were eager to slice retail spaces into smaller units to lease out at higher rents per square foot. Now in the face of softening rents and dwindling tenant sales, some landlords are changing tack to lure back the bigger tenants they were once inclined to shoo away.

While this curating of tenant mix may lend support to mall occupancies and footfall, it will do little to reverse an anticipated fall in retail rents next year.

Projections for retail rental declines in 2016 go as far as 5 per cent, judging from consultants' estimates. For one thing, the looming supply of retail space is worrying.

Based on the past three-year average annual net demand for retail space island-wide and assuming a similar level of space take-up ahead, it will take close to four years to absorb the upcoming new retail space, Knight Frank head of research and consultancy Alice Tan said.

"With an estimated 2.44 million sq ft of gross retail space to be completed next year, the search for retailers to fill both existing and new spaces is slated to intensify," she said, pegging her average rent forecast in the Central Region to a 3-5 per cent drop for 2016.

Expecting up to a 3 per cent decline in retail rents island-wide next year, Chesterton Singapore's managing director Donald Han sees the same issues of manpower crunch, lower tourist arrivals and the strong Singapore dollar as well as competition from e-commerce continuing to plague retailers next year.
...
Source: Business Times

(25-01-2016, 11:24 AM)corydorus Wrote: 1Q16 FCT

1Q16 DPU of 2.87 cents, up 4.4% year-on-year

Notice that for 1Q16, FCT achieved rental reversion of +13.7% - roughly double the rate it achieved in the past 3 years!
This is for very roughly 10% of the total NLA in the reit, so is for quite a substantial area.

(11-12-2015, 09:49 AM)zerobeta Wrote: They are planning to acquire assets in Australia, share price tanked over the past week
http://sbr.com.sg/commercial-property/ne...pansion-ji

this is certainly not welcoming as we know the strength of FCT lies from its conservative balance sheet and defensive nature of its portfolio... I wonder what's the motive behind this....

At the AGM last week, the CEO guided that if they diversify outside Singapore, they plan to keep Sgp assets as a core of not less than 80%.