Frasers Property (formerly: Frasers Cpt (FCL))

[I_love_girls]

I love Chaoren as the boss of any company！

[Happymeowmeow]

why did EPS fall from 11.3 cents to 7.9 cents? a 30% decline

[Contrarian]

> Proportion of recurring income increased to over 59% following acquisition of Australand and listing of FHT

$520M PBIT, out of which $307.8M is recurring profits... :-)

[Happymeowmeow]

> Proportion of recurring income increased to over 59% following acquisition of Australand and listing of FHT

$520M PBIT, out of which $307.8M is recurring profits... :-)

recurring income is good, seems like they are now more of an asset manager instead, which gives them more stability

[Contrarian]

Yes, the recurring income will grow for as long as the REITs net property income and value continues to perform.

The news of industrial REIT IPO will give additional catalyst since they can recognise sale of industrial properties, lower gearing and payout more dividends :-)

[Happymeowmeow]

btw I see that gearing is pretty high at over 80%... is that something to worry about?

somemore that doesn't take into account of perp bonds right

vested

[I_love_girls]

They are reducing it as quarter is passing!

[greengiraffe]

Fast and furious:

http://infopub.sgx.com/FileOpen/SGX_FCL_...eID=348999

http://www.smh.com.au/business/property/...389yf.html

Bought A$202.7m in May 14 now sold A$224m under 75 years lease.

2.3 Key Terms of the Master Lease Agreement
The initial term of the Master Lease is for 20 years, with an option exercisable by the Master
Lessee to renew the master lease for a further term of 20 years on the same terms and
conditions, save for amendments required due to change in law and excluding any further
option to renew9.
The principal terms of the Master Lease Agreement include, among others, the following:
(i) the Master Lessee is required to pay rent on a monthly basis, which rent shall
comprise:
(a) a fixed rent of A$6.0 million per annum (“Fixed Rent”); and
(b) a variable rent computed based on 83.0% of the gross operating profit of the
Hotel for that fiscal year less the Fixed Rent for the relevant fiscal year, plus
any unutilised balance in the FF&E reserve which is not carried forward the
following fiscal year by mutual agreement of the parties to the Master Lease
Agreement and if the calculation of the variable rent yields a negative figure,
the variable rent will be deemed to be zero;

[I_love_girls]

Surprisingly, it drops even after good result release! Funny and interesting

[Happymeowmeow]

FCL said it will use the proceeds of the proposed transaction to reduce its borrowings and gearing. Based on the proforma financial effects of the proposed sale and leaseback arrangement, assuming this has taken place on Sept 30, 2014, its gearing is estimated to decrease from 95 per cent to 91 per cent. - See more at: http://www.straitstimes.com/news/busines...3OMQ6.dpuf

gearing is still way too high

hope they can bring it down to 50% by year end