Frasers Property (formerly: Frasers Cpt (FCL))

[jianjian]

cant wait for tmr results.

wonder what will happen to the stock price when the holding lock up period is reached.

[CityFarmer]

Was reviewing Fraser Hospitality's assets and that of TCC Land's international portfolio alongside of the rumoured purchase of Sdyney Sofitel Wentworth, the purchase of the hotel may not be at odd with the both the related group's objectives.

In fact, the proposed hospitality REIT by FCL may have combined characteristics of CDL H REIT and Ascott REIT.

Anyway, hope to get more updates from interim results out tomorrow.

Vested
GG

Yes, looking forward for more indicators in the announcement today. Base on market price trend, it seems investors are optimistic on that.

(vested)

[greengiraffe]

Lockup period expires 6 months after the listing on 9 Jul 14.

So far management has done the following positives to build their track record as a newly listed entity (even though they have good track record as a core business and contributor to former parent F&N):

i) declared a final dividend of $50m right after listing totalling $200m or a payout ratio of 50% for FY9/13. Very rare for a newly listed company but shows the management's eagerness to share wealth with minorities wherever possible. FCL has also in its introductory prospectus indicated that they will declare no more than 75% of net profits after tax as their dividend policy - another rare transparency amongst listed property companies;

ii) recycled capital via the injection of matured assets into existing REIT platform and intention to set up new REIT for another asset class. Changi City Point retail is being injected into FCT while Fraser Hospitality REIT listing hopefully remains on track as the sentiment towards REIT sector as a whole has improved in the last 2 months;

iii) actively pursuing assets at attractive prices to replenish matured assets. So far they have invested small amount of money in a hotel in Spain while in talks to purchase Sydney Sofitel Wentworth. Interestingly the pending purchase of Sdyney Sofitel Wentworth for the reported A$200m could well be a prelude to replenish the eventual injection of Fraser Suites Perth (87.5% owned worth A$109.4m on books) and Fraser Suites Sdyney (80.5% owned worth A$79.7m on books) upon successful listing of Fraser Hospitality Trusts.

iv) my speculated interim dividends this evening will help enhance another track record for FCL - a dividend yielder. Amogst the top 7 ranking mkt cap property developer by CIMB analysts, only HKLand consistently declares an interim dividend.

v) given that FCL has a sizable mkt cap, its developer, asset owner and reit manager and listed reit platform will place it just behind Capland and Kepland as comparables amongst the top 7 in terms of listed developers on SGX. The rising share price should it be maintained till the time when TCC Assets / Inter Bev decides to dilute their stakes is likely to attract the following of index tracking fund managers. While FCL's inclusion in major indices remain a chicken and egg issue between free float and ability of likely institutions support, I am confident that seasoned management team led by Mr Charoen would have deliberated well ahead of such a significant milestone. I am not worried by such a move and when the time comes, the support will be indications on the future performance of share price post such a mammoth exercise.

Vested
GG

cant wait for tmr results.

wonder what will happen to the stock price when the holding lock up period is reached.

[jianjian]

2.4 cents of dividend per share is announced.

[greengiraffe]

http://infopub.sgx.com/FileOpen/2Qtr-FCL...eID=296484

http://infopub.sgx.com/FileOpen/FCL-2Q14...eID=296485

Extracts From Outlook

Despite the softening market in Singapore, the Group’s most recent launch, Rivertree Residences was well received and about 44% of the 496 units have been sold to date. FCL’s portfolio of malls and offices continues to trade well. Construction of Waterway Point is progressing and is projected to complete in 2015. The Group, through its 50:50 joint venture, Ascendas Frasers Pte Ltd, has entered into a conditional sale and purchase agreement with Frasers
Centrepoint Trust to sell Changi City Point for $305m.

In Australia, upcoming project completions are QIII at Queens Riverside and The Mark at Central Park. Central in Sydney, part of the Central Park development, with approximately 150,000 sqf of lettable area has commenced operations. In China, Baitang One (Phase 2B) and Chengdu Logistic Hub (Phase 2) are also expected to complete
in this financial year.

Frasers Hospitality secured MOUs relating to management contracts for four properties with 927 units. Frasers Hospitality also opened three new properties in Jakarta, Kuala Lumpur and Wuxi. As at 31 March 2014, Frasers Hospitality manages 8,402 apartments and has signed up additional 6,908 apartments. On 12 March 2014, the Group obtained an eligibility-to-list letter (“ETL”) for a proposed initial public offering and listing on the SGX-ST of a stapled trust comprising a hospitality REIT and business trust. In addition to the receipt of the ETL letter, there are other requirements that need to be met to enable the Group to proceed with the IPO when it considers it appropriate to do so. As a next step, FCL will convene an Extraordinary General Meeting at a date to be advised to seek
shareholders’ approval for the proposed injection of the hospitality assets into FHT.

Going forward, the Group will continue to selectively acquire sites to replenish its landbank in Singapore while focusing on delivering its pipeline in its core overseas markets of Australia and China. FCL will also seek opportunities to unlock value in its portfolio via asset enhancement or repositioning efforts, as well as possible injection of stabilised assets into our REITs.

GG's take

FCL continued to present very concise and focus results presentation for a group that has diverse property interests and platforms. I think its long term strategy of deriving a 60/40 or 50/50 earnings from development / recurrent income from property investment/management will keep the group on course for less volatile earnings relative to other peers.

FCL has a nimble approach to developments with its outstanding residential landbank limited to 900 units in Yishun Central (part of the North Point extension that FCL appears to have over-paid relative to next higher bidder during the land auction). Other than that, the other land site is an office development along Cecil Street. Foreign landbank and developments featured prominently in the latest interims and hopefully can continue to make meaningful contributions in the future.

FCL has a well established investment portfolio comprising investment properties across commercial, retail and hospitality assets. Asset light platforms also have years of track record and will serve as pipelines for FCL to recycle assets and progressively increase assets under management in future years. FCL has indicated that shareholders approval will be sought for the formation and spinoff of assets into Fraser Hospitality Trust (FHT). FHT will complete FCL suites of REIT platform making it comparable to Capitaland in terms of comparable REIT platform.

FCLhas declared a maiden 2.4 cents interim dividends, amounting to 30% payout of attributable earnings before fair value adjustment and one-offs - a good start to build its track record as a listed entity.

Will be looking out for analysts update on FCL's interims.

Vested
GG

[valuebuddies]

2.4c for slightly less than 3-month since listing, if assume sustainable payout per quarter, then it would be nearly 10c per year. Very impressive for a non-reit property counter.

vested

[greengiraffe]

VB,

Bear in mind this is not a REIT and I think will be safe to assume that dividends will be paid twice a year.

If the payout stays at 50%, I will be very happy as well.

Anyway, its another milestone in convincing potential institutional investors to take a stake when the price is ripe for Thai Towkay to dilute his interests.

GG

2.4c for slightly less than 3-month since listing, if assume sustainable payout per quarter, then it would be nearly 10c per year. Very impressive for a non-reit property counter.

vested

[valuebuddies]

VB,

Bear in mind this is not a REIT and I think will be safe to assume that dividends will be paid twice a year.

If the payout stays at 50%, I will be very happy as well.

Anyway, its another milestone in convincing potential institutional investors to take a stake when the price is ripe for Thai Towkay to dilute his interests.

GG

I would assume the spinning of the hospitality reit would come first before the towkay consider selling his stakes.

[greengiraffe]

VB,

Bear in mind this is not a REIT and I think will be safe to assume that dividends will be paid twice a year.

If the payout stays at 50%, I will be very happy as well.

Anyway, its another milestone in convincing potential institutional investors to take a stake when the price is ripe for Thai Towkay to dilute his interests.

GG

I would assume the spinning of the hospitality reit would come first before the towkay consider selling his stakes.

Give the man an Elephant... He knows what is good for himself and minorities. Chang Seng...

GG

[desmondxyz]

Now they confirmed Sydney Wentworth acquisition.....

http://infopub.sgx.com/FileOpen/Sofitel_...eID=296496