Frasers Logistics & Industrial Trust

[cyclone]

Implementation of Dual Currency Trading for FLT

The Units are currently quoted and traded only in S$. With the implementation of the dual currency trading of the Units from  9.00 a.m. on 15 August 2016, FLT will have an A$ counter in addition to its existing S$ counter and investors will be able to buy or sell the Units through either counter given the fungibility of Units between the two counters.

[cyclone]

Financial Results for the Quarter Ended 31 December 2016

Highlights :
* Gross Revenue for the quarter was A$39.7 million
* Distributable Income up 5.1% to A$24.9 million
* Distribution Per Unit ("DPU") of 1.74 Singapore cents
* Portfolio Value up 8.8% to A$1.74 billion
* Aggregate Leverage is 29.7%
* Acquired third call option property in November 2016
* 56,108 sq m of new and lease renewals executed
* Occupancy at 99.3% and WALE of 6.9 years
* The REIT Manager expects FLT to meet the FY2017 DPU Forecast of 6.50 Singapore cents 

More details in :
1. http://infopub.sgx.com/FileOpen/FLT_Pres...eID=437995
2. http://infopub.sgx.com/FileOpen/FLT_Fina...eID=437994

[Boon]

-      One of the few industrial S-reit (Aussie pure-play though) with long land tenure.
-      A portfolio of 54 prime properties concentrated in major industrial markets in Australia
-      Predominantly freehold (57.6% by value), long leasehold of more than 80 years (30% by value) and young portfolio (75.5% of portfolio is less than 10 years old with lower capex requirements.
-      Well diversified tenant base.
-      Long WALE of 6.9 years
-      High occupancy at 99.3%
-      Aggregate leverage = 29.7%
-      DPU = SGD 1.74 cents (for quarter ended 31-Dec-2016)
-      Annualized yield = 4 x 1.74 / 96.5 = 7.2%
-      Key risks: FX, interest rate
______________________________________________________________________________

Frasers Logistics & Industrial Trust Investor Presentation Slides
http://investor.fraserslogisticstrust.co.../id/569002

[tanjm]

The interesting thing about this stock is that it is also a play on the AUD, if you are so inclined to do so, while earning a decent yield on a decent asset base.

I've been looking at hedging SGD weakening over the last several months, and while USD was my main currency of choice, AUD is also a plausible choice. Australia is a resource export dependent country with a small population. Good chance of the AUD reverting to mean over the next few to several years.

[corydorus]

The interesting thing about this stock is that it is also a play on the AUD, if you are so inclined to do so, while earning a decent yield on a decent asset base.

I've been looking at hedging SGD weakening over the last several months, and while USD was my main currency of choice, AUD is also a plausible choice. Australia is a resource export dependent country with a small population. Good chance of the AUD reverting to mean over the next few to several years.

AUD is at their low point currently to S$. So is a good bet that there will be larger recognition when convert to S$. I like it because it provide diversification from Singapore asset. and the yield is good. Is a new reit so something we need to monitor but based on "Frasers brand" it is unlikely to go far off imo currently.

[persia]

The interesting thing about this stock is that it is also a play on the AUD, if you are so inclined to do so, while earning a decent yield on a decent asset base.

I've been looking at hedging SGD weakening over the last several months, and while USD was my main currency of choice, AUD is also a plausible choice. Australia is a resource export dependent country with a small population. Good chance of the AUD reverting to mean over the next few to several years.

AUD is at their low point currently to S$. So is a good bet that there will be larger recognition when convert to S$. I like it because it provide diversification from Singapore asset. and the yield is good. Is a new reit so something we need to monitor but based on "Frasers brand" it is unlikely to go far off imo currently.

This counter has become one of my core holdings over last few months.

I like this counter for a number of reasons (relatively high yield, comfortable level of borrowings, no significant loan repayments in near term, top customers are in sectors which have growing demand for warehouse space such as FMCG, 3PL, relatively long WALE) but not as a play on AUD as I feel that could be a double-edge sword, could go either way..

In any case, there are multiple consortiums currently weighing in bids for GLP so hopefully those bidders who eventually "lose out" on the GLP bid will consider making a bid for FLT instead... 

[corydorus]

The interesting thing about this stock is that it is also a play on the AUD, if you are so inclined to do so, while earning a decent yield on a decent asset base.

I've been looking at hedging SGD weakening over the last several months, and while USD was my main currency of choice, AUD is also a plausible choice. Australia is a resource export dependent country with a small population. Good chance of the AUD reverting to mean over the next few to several years.

AUD is at their low point currently to S$. So is a good bet that there will be larger recognition when convert to S$. I like it because it provide diversification from Singapore asset. and the yield is good. Is a new reit so something we need to monitor but based on "Frasers brand" it is unlikely to go far off imo currently.

This counter has become one of my core holdings over last few months.

I like this counter for a number of reasons (relatively high yield, comfortable level of borrowings, no significant loan repayments in near term, top customers are in sectors which have growing demand for warehouse space such as FMCG, 3PL, relatively long WALE) but not as a play on AUD as I feel that could be a double-edge sword, could go either way..

In any case, there are multiple consortiums currently weighing in bids for GLP so hopefully those bidders who eventually "lose out" on the GLP bid will consider making a bid for FLT instead... 

The low interest rates has helped Australian business which may explains the property boom over there with lower borrowing cost. Not sure about bid as we maybe killing the golden goose that lay eggs. I rather the business continues to be proactively managed and grow. If privatize, one less counter to invest ... and this will be bad.

[Boon]

https://www.valuebuddies.com/thread-4912...#pid135984
_______________________________________________________________________________________________________________________

[Boon]

STAFF REPORTER | 1 MARCH 2017

Industrial, logistics surprise performers in Australia's commercial property market: CBRE

The industrial and logistics sector has emerged as the surprise performer of Australia’s commercial property market, with rental growth and projected growth in 2017 making investors confident about the sector, according to commercial real estate firm CBRE.

Strong levels of consumption and investment spending is supporting goods demand in major markets across the country, providing a strong basis for rental growth in 2017, says CBRE’s Industrial and Logistics, Q4 2016, MarketView report.
In the final three months of 2016, the industrial and logistics sector recorded positive quarterly rental growth of 0.5 percent nationally, underpinned by strong gains in Sydney, it said. 

The figures point to the beginning of a growth period for the sector, said CBRE’s senior managing director, Industrial & Logistics, Pacific, Matt Haddon.

“The tide has turned, with the latest quarterly rental growth and projected growth in 2017 injecting confidence into the sector, which, despite mixed economic conditions, has continued to succeed,” Haddon said. 

“It’s well documented that the manufacturing sector is declining – and has been for years. Gains in consumption and investment spending are where our focus needs to lie, with this sector of the market driving future occupier demand growth.” 

Reduced supply in 2016 is also expected to stimulate rental growth, with just 433,000 sqm released in the December quarter – 34% lower when compared to the same period in 2015, the report says.

In terms of deals, Victoria recorded its strongest year on record in 2016, with $1.92 billion in assets changing hands – representing a 15% increase from 2015. 
The report shows $394 million in property transactions during the last three months of 2016 helped propel the Victorian market to its strongest position on record. 
CBRE senior research manager Kate Bailey said a number of high quality assets and portfolio sales had underpinned strong transaction activity in Melbourne. 
“In 2016, there was an imbalance of available premium assets and large scale opportunities to meet demand in most locations across the country – with the possible exception of Melbourne,” Bailey said. 

“Similar drivers were responsible for a slowdown in offshore investment, with portfolio sales the key driver of foreign investment in 2016.” 

Nationally, $4.831 billion in industrial & logistics assets changed hands during 2016 – marginally down from a record $5.267 billion in 2015, due to the available stock shortfall.

New South Wales recorded $1.559 billion for the year, followed by Queensland with $537.67 million, $617.2 million in Perth, $146.05 million in South Australia and $31.25 million in the ACT. 

“Global capital remains highly focused on this strongly performing segment of the commercial market,” Haddon said. 
Haddon said further compression of yields in major markets during 2016 indicated that investors were anticipating both occupier demand and rental growth in the sector. 

In Q4, super prime average yields compressed a further 10 basis points to reach record lows of 6.9% nationally, driven by a low of 6.0 percent in Melbourne, 6.1 percent in Sydney and 6.5 percent in Brisbane.

Haddon said current market conditions pointed to a strong year for the market. 

“Current activity levels suggest that an increased number of opportunities will be available for investors in the first quarter of 2017, compared to the same period 12 months ago.” 

http://www.propertyobserver.com.au/findi...-cbre.html
___________________________________________________________________________________________________________________

[cyclone]

Financial results for the financial quarter ended 31 March 2017

Highlights :
1. Gross revenue for the financial quarter ended 31 March 2017 was A$ 40.9 million
2. Distributable Income for the quarter at A$25.1 million is 5.9% above forecast ( forecast A$ 23.7 million)
3, Distribution per unit for the quater ended 31 March 2017 = 1.75 Singapore cents
4. Declared distribution of 3.49 Singapore cents for the six month period ended 31 March 2017, exceeding forecast by 6.4% (forecast 3.28 cent Singapore cents)
5. Lower borrowing costs than forecast
6. 13,111 sq m of new lease and lease renewals executed
7. High portfolio occupancy of 99.3%.

More details in :
1. http://infopub.sgx.com/FileOpen/FLT_Pres...eID=452233
2. http://infopub.sgx.com/Apps?A=COW_CorpAn...1Mar17.pdf
3. http://infopub.sgx.com/Apps?A=COW_CorpAn...1Mar17.pdf