Frasers Commercial Trust (FCOT)

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#41
http://www.businesstimes.com.sg/companie...4-dpu-by-6

Strong rents, occupancies lift FCOT Q4 DPU by 6%
By
Lynette Khoolynkhoo@sph.com.sg@LynetteKhooBT
21 Oct5:50 AM
Singapore

FRASERS Commercial Trust (FCOT) achieved a 6.2 per cent rise in distribution per unit (DPU) to 2.21 Singapore cents for the fourth quarter ended Sept 30, thanks to strong rents and occupancies as well as lower interest costs.

This brought the fiscal full year DPU to a



Strong rents, occupancies lift FCOT Q4 DPU by 6%
By
Lynette Khoolynkhoo@sph.com.sg@LynetteKhooBT
21 Oct5:50 AM
Singapore

FRASERS Commercial Trust (FCOT) achieved a 6.2 per cent rise in distribution per unit (DPU) to 2.21 Singapore cents for the fourth quarter ended Sept 30, thanks to strong rents and occupancies as well as lower interest costs.

This brought the fiscal full year DPU to a
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#42
https://www.moodys.com/research/Moodys-a..._PR_313929

Moody's assigns Baa3 issuer rating to Frasers Commercial Trust, withdraws CFR

Global Credit Research - 27 Nov 2014

Singapore, November 27, 2014 -- Moody's Investors Service has assigned a Baa3 issuer rating to Frasers Commercial Trust (FCOT), following the withdrawal of its Baa3 corporate family rating. The outlook for the rating is stable.

RATINGS RATIONALE

The rating action follows Moody's decision to no longer reflect subordination in FCOT's rating. In September 2014, the trust successfully refinanced all of its secured debt with unsecured debt, which no longer subordinates unsecured creditors within the overall debt structure.

The refinancing has resulted in all five properties of FCOT to be unencumbered. It has also lengthened its average debt maturity to 4.3 years as of 30 September 2014 from 2.0 years a year ago.

"We see this move to be credit positive for FCOT, as it improves the trust's financial flexibility", says Jacintha Poh, a Moody's Assistant Vice-President and analyst.

"The trust has demonstrated its ability to maintain a balanced lease expiry profile, which helps to generate stable rentals and recurring cash flows, despite its small asset size and revenue", continues Poh.

As of 30 September 2014, FCOT's long-weighted average lease expiry profile by gross rental income -- of 3.9 years -- is supported by the weighted average lease expiries of around 7 years for its Australian properties, compared to 2 years for its domestic properties. Australia generally has longer leases as the tenancy tenure lasts for approximately 10 years, whilst properties in Singapore generally have lease tenures of around 3 years.

In addition, the trust was able to improve its revenue as a result of positive rental reversions achieved in both Singapore and Australia by between 14% to 21% for both new leases and renewals which commenced in the financial year ended 30 September 2014.

"We expect FCOT to be able to grow its rental income, in particular following the expiry of master lease at Alexandra Technopark, and given our expectation that rents for its Singapore properties will grow due to limited new supply of offices over the next 12-18 months", adds Poh.

On 25 August 2014, the master lease at Alexandra Technopark expired, and the trust now receives rents directly from its underlying tenants.

FCOT's credit metrics are healthy, with adjusted debt to total deposited assets of 37%, and adjusted EBITDA/Interest coverage of 4.1x as of 30 September 2014.

The rating outlook is stable, reflecting Moody's expectation that FCOT's properties will continue to generate stable income, driven by steady occupancy levels and organic growth from positive rental reversions.

Moody's would consider upgrading the rating if FCOT: (1) maintains a balanced debt maturity profile; and (2) improves its financial metrics, such that debt/total deposited assets falls below 35%-40% and EBITDA/interest coverage is above 4x for a prolonged period.

FCOT's rating could be under pressure if: (1) the operating environment deteriorates, leading to higher vacancy levels and lower operating cash flow; and/or (2) its financial metrics deteriorate, with debt/total deposited assets exceeding 45%, EBITDA/interest coverage declining below 2x and secured debt/total deposited assets exceeds 15%-20% on a consistent basis. In addition, an aggressive growth policy in terms of leverage or reliance on short-term funding would also pressure the rating.

The principal methodology used in this rating was Global Rating Methodology for REITs and Other Commercial Property Firms published in July 2010. Please see the Credit Policy page on www.moodys.com for a copy of this methodology.

FCOT, formerly known as Allco Commercial REIT, was listed on the Singapore Stock Exchange in March 2006. It was acquired by Frasers Centrepoint Limited (FCL) on 14 August 2008, following which it was renamed. FCOT has a portfolio of five properties -- two office buildings and one business space in Singapore and a premium and a Grade A office building in Australia -- with a combined appraised value of approximately SGD1.8 billion, at of 30 September 2014.
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#43
If TFS Collins is a hint, FCOT could be looking to acquire the office:

351-357 Collins St, Melbourne, Vic which is worth S$235.521m on FCL books stated in its annual report to FY9/2014.

http://infopub.sgx.com/Apps?A=COW_CorpAn...tities.pdf

INCORPORATION OF SUBSIDIARIES
Singapore, 24 April 2015 – Pursuant to Rule 704(17)© of the Listing Manual of Singapore Exchange Securities Trading Limited, Frasers Centrepoint Asset Management (Commercial) Ltd., as the manager of Frasers Commercial Trust (“FCOT”), announces that the following have been incorporated as direct and indirect wholly-owned subsidiaries of British and Malayan Trustees Limited, in its capacity as trustee of FCOT:
 FRASERS COMMERCIAL SUB NO. 4 PTE. LTD., with an initial issued and paid-up share capital of A$102 for investment holding purposes;
 FRASERS COMMERCIAL INVESTMENTS NO. 4 PTY LIMITED, with an initial issued and paid-up share capital of US$80 for investment holding purposes; and
 TFS COLLINS PTY LTD, with an initial issued and paid-up share capital of A$2. It is envisaged that TFS Collins Pty Ltd will provide trustee and management services to a trust in connection with the acquisition of and/or investment in property.
BY ORDER OF THE BOARD
Frasers Centrepoint Asset Management (Commercial) Ltd.
(as manager of Frasers Commercial Trust)
(Company Registration No: 200503404G)
Piya Treruangrachada
Company Secretary
24 April 2015
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#44
http://infopub.sgx.com/Apps?A=COW_CorpAn...ins_St.pdf

I. PROPOSED ENTRY INTO THE BUILDING AGREEMENT FOR THE
DEVELOPMENT OF THE HOTEL AND THE GRANT OF A LONG LEASE AT
THE CHINA SQUARE CENTRAL PROPERTY; AND
II. PROPOSED ACQUISITION OF 357 COLLINS STREET, MELBOURNE,
VICTORIA, AUSTRALIA
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#45
ATM machinery for Towkay's Australand's buyout starting to Ka-ching again. More to come for sure.
Before you speak, listen. Before you write, think. Before you spend, earn. Before you invest, investigate. Before you criticize, wait. Before you pray, forgive. Before you quit, try. Before you retire, save. Before you die, give. –William A. Ward

Think Asset-Business-Structure (ABS)
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#46
Reits are sponsors' ATM machine. Caveat Emptor.

So far, it appears that FCL is not going to extract cash from China Sq Capri - Collins Street deal from FCOT as yet...

Vested
GG

(28-04-2015, 10:24 AM)specuvestor Wrote: ATM machinery for Towkay's Australand's buyout starting to Ka-ching again. More to come for sure.
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#47
DBS Vickers:

A Circular Growth Story
 Value un-locking sale of hotel development
rights and lease to sponsor
 357 Collins acquisition to drive earnings higher
 Maintain BUY, TP raised S$1.74
Transformation trasactions. Frasers Commercial Trust
(FCOT) announced the proposed (i) sale of its
development rights and land lease for 16k sqm of space
at China Square Central (CSC) to its sponsor for S$44.8m
and (ii) acquisition of 357 Collins Street, Melbourne from
sponsor for A$222.5m (S $232.2m). Both transactions are
related party transaction and an EGM will be convened.
Value creation from CSC hotel development deal;
S$44.8m implies a valuation of close to
900k/key. We are positive on the sale of the
development rights and leasehold interest as it crystallizes
hidden value within the property. Upon completion of a
planned hotel development (300 rooms) in 3-4 years time,
we see multifold growth in rentals and capital values with
renewed vibrancy. The S$44.8m received for the
remaining 80-year leasehold for 16k sqm of space slated
for hotel development implies a valuation of S$882-
931k/room, which we believe is fair price.
357 Collins to further strengthen FCOT’s income
stream. We view the acquisition of 357 Collins street
more for its attractive yield backed by a long weighted
average lease expiry of 6 years. Acquired at an estimated
initial yield of c.6.25%, the deal is expected to be
accretive. We have assumed S$100m in new equity
raised, resulting in gearing settling at 37% and uplift in
DPU by c.1.6%.
Maintain BUY, TP raised to S$1.74. With a strong 2Q
results behind us, we remain excited about FCOT’s
growth prospects and see further rejuvenation
of CSC as further catalyst for the stock. BUY call
maintained, TP revised to S$1.74 as we roll forward
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#48
(28-04-2015, 10:47 AM)greengiraffe Wrote: Reits are sponsors' ATM machine. Caveat Emptor.

So far, it appears that FCL is not going to extract cash from China Sq Capri - Collins Street deal from FCOT as yet...

Vested
GG

(28-04-2015, 10:24 AM)specuvestor Wrote: ATM machinery for Towkay's Australand's buyout starting to Ka-ching again. More to come for sure.

yeah which is what we have been discussing past 18 months: one has to follow where the Towkay's vested interest in. I never believe they will take care of OPMI
Before you speak, listen. Before you write, think. Before you spend, earn. Before you invest, investigate. Before you criticize, wait. Before you pray, forgive. Before you quit, try. Before you retire, save. Before you die, give. –William A. Ward

Think Asset-Business-Structure (ABS)
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#49
(27-04-2015, 08:55 AM)greengiraffe Wrote: http://infopub.sgx.com/Apps?A=COW_CorpAn...ins_St.pdf

I. PROPOSED ENTRY INTO THE BUILDING AGREEMENT FOR THE
DEVELOPMENT OF THE HOTEL AND THE GRANT OF A LONG LEASE AT
THE CHINA SQUARE CENTRAL PROPERTY; AND
II. PROPOSED ACQUISITION OF 357 COLLINS STREET, MELBOURNE,
VICTORIA, AUSTRALIA

I thought slide 22 was pretty hilarious. A nice try and a textbook example from 'How to lie with statistics'.
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#50
http://www.fraserscommercialtrust.com/Ho...20res.ashx

357 Collin St Melbourne acquired:

i) Net prop income yield 6.3%
ii) 95% committed occupancy
iii) WALE 6.0 years
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