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Frasers Commercial Trust (FCOT)
02-08-2011, 10:56 PM.
Post: #1
Frasers Commercial Trust (FCOT)
Put some $ here lately.

6+% yield, at a 33% discount to NAV.

Rental is going up, 20% of singapore office is due for renewal next yr
Interest costs is coming down from 09 levels.

At current yields, hard for them to acquire new assets. So they will do all they can to drive up share price and drive down yield.

Even today's correction, price didn't correct at all...

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21-08-2011, 11:46 PM.
Post: #2
RE: Frasers Commercial Trust (FCOT)
does Trust counter really good????

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24-04-2012, 10:03 AM. (This post was last modified: 24-04-2012, 10:06 AM by KopiKat.)
Post: #3
RE: Frasers Commercial Trust (FCOT)
SGX Announcements on Propsed Sale of Keypoint,

http://info.sgx.com/webcoranncatth.nsf/V...yPoint.pdf

http://info.sgx.com/webcoranncatth.nsf/V...ypoint.pdf

Some extracts,

Singapore, 24 April 2012 – Frasers Centrepoint Asset Management (Commercial) Ltd. (the “Manager”), as the manager of Frasers Commercial Trust (“FCOT”), wishes to announce the proposed sale (the “Sale”) of KeyPoint (the “Property”) to Bayfront Ventures Pte Ltd for a consideration of S$360.0 million (the “Sale Consideration”). Bayfront Ventures Pte Ltd is a company jointly owned by Fragrance Group Ltd and World Class Land Pte Ltd, a subsidiary of Aspial Corporation Limited.

Mr Low Chee Wah, Chief Executive Officer of the Manager, said, “This transaction is an excellent opportunity for FCOT to unlock the value of one of its older assets, thereby creating value for our Unitholders resulting in a gain of S$72.8 million. The divestment is in line with our strategy to reshape the portfolio with better assets which will provide further growth for our Unitholders.

We are pleased that the Sale was achieved at 26.3% or S$75.0 million above the last valuation of S$285 million in September last year. The Sale will strengthen the financial position of FCOT and provide financial flexibility for its next phase of growth.”
Luck & Fortune Favours those who are Prepared & Decisive when Opportunity Knocks
------------ 知己知彼 ,百战不殆 ;不知彼 ,不知己 ,每战必殆 ------------

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24-04-2012, 10:16 AM. (This post was last modified: 24-04-2012, 10:30 AM by Temperament.)
Post: #4
RE: Frasers Commercial Trust (FCOT)
"Alamak"! i sold the remainder of the FCOT yesterday. Seow liao! Trying to buy back some. Well sometimes you win sometimes you lose. No regret! No sorrow! No sweat! Other wise how to stay relevant and survive in the market.Big GrinTongue
WB:-

1) Rule # 1, do not lose money.
2) Rule # 2, refer to # 1.
3) Not until you can manage your emotions, you can manage your money.

Truism of Investments.
A) Buying a security is buying RISK not Return
B) You can control RISK (to a certain level, hopefully only.) But definitely not the outcome of the Return.

NB:-
My signature is meant for psychoing myself. No offence to anyone. i am trying not to lose money unnecessary anymore.

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24-04-2012, 11:50 AM.
Post: #5
RE: Frasers Commercial Trust (FCOT)
Very good move on the part of FCOT. It should let FCT concentrate on retail assets (which it is doing so well with its suburban malls) and just concentrate on the office/industrial area.

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24-04-2012, 12:16 PM.
Post: #6
RE: Frasers Commercial Trust (FCOT)
Looking at their slides for Investor Presentation for Meetings in Hong Kong, it's interesting to see the impact of this divestment in Pg 11,

DPU : 5.75ct -> 6.19ct
Gearing : 36.1% -> 21.8%

Based on the assumption that, (i) the Sale of KeyPoint and (ii) the entire net proceeds from the Sale of KeyPoint had been utilised to partially prepay the SGD500 million term loan facility under the SGD500 million facility agreement had been effected on 30 September 2011


ie. The proceeds, if used to repay their Term Loan, actually results in a higher DPU! Cool

But, in the longer run, I bet they'll likely deploy it for Yield Accretive acquisitions for even better DPU. IMO, I think in the shorter term, Share Price will unlikely retreat... If it does, I'll pounce to collect more.. Hee.. Big Grin
Luck & Fortune Favours those who are Prepared & Decisive when Opportunity Knocks
------------ 知己知彼 ,百战不殆 ;不知彼 ,不知己 ,每战必殆 ------------

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24-04-2012, 05:31 PM.
Post: #7
RE: Frasers Commercial Trust (FCOT)
Of course, REIT managers are paid by their ability to grow assets. Where on their KPI do you see them having "shareholder's values" as a KPI ???

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24-04-2012, 06:05 PM.
Post: #8
RE: Frasers Commercial Trust (FCOT)
(24-04-2012, 12:16 PM)KopiKat Wrote: But, in the longer run, I bet they'll likely deploy it for Yield Accretive acquisitions for even better DPU. IMO, I think in the shorter term, Share Price will unlikely retreat... If it does, I'll pounce to collect more.. Hee.. Big Grin

In the same presentation (slide 30), they already earmarked 2 assets to acquire (Alexandra Point + Valley Point). The sales proceeds of $360 million is more than the $350.1 million valuation for both assets.

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24-04-2012, 06:16 PM. (This post was last modified: 24-04-2012, 07:09 PM by KopiKat.)
Post: #9
RE: Frasers Commercial Trust (FCOT)
(24-04-2012, 06:05 PM)lonewolf Wrote:
(24-04-2012, 12:16 PM)KopiKat Wrote: But, in the longer run, I bet they'll likely deploy it for Yield Accretive acquisitions for even better DPU. IMO, I think in the shorter term, Share Price will unlikely retreat... If it does, I'll pounce to collect more.. Hee.. Big Grin

In the same presentation (slide 30), they already earmarked 2 assets to acquire (Alexandra Point + Valley Point). The sales proceeds of $360 million is more than the $350.1 million valuation for both assets.

I was just about to post that but you beat me to it! Big Grin


KopiKat Wrote:Looking at their slides for Investor Presentation for Meetings in Hong Kong, it's interesting to see the impact of this divestment in Pg 11,

DPU : 5.75ct -> 6.19ct
Gearing : 36.1% -> 21.8%

Based on the assumption that, (i) the Sale of KeyPoint and (ii) the entire net proceeds from the Sale of KeyPoint had been utilised to partially prepay the SGD500 million term loan facility under the SGD500 million facility agreement had been effected on 30 September 2011


ie. The proceeds, if used to repay their Term Loan, actually results in a higher DPU!

Take note that the above figures are Proforma FY11 (Sep). The latest DPU = 3.2423ct for 1H12 (Mar) ie. I'd expect an even higher DPU if we were to use Proforma 1H12 (I'd add 6.19ct - 5.75ct = 0.44ct if I have to do any quick DPU projections - divide by 2 if Half Year).
Luck & Fortune Favours those who are Prepared & Decisive when Opportunity Knocks
------------ 知己知彼 ,百战不殆 ;不知彼 ,不知己 ,每战必殆 ------------

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26-04-2012, 09:16 AM.
Post: #10
RE: Frasers Commercial Trust (FCOT)
They should have sold teh Keypoint Building back to their parent F&N like what K REIT did for Keppel GE Towers when they sold it back to Keppel Land. Can get better price!

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