I attended the agm. Notes as below. I am sorry if some numbers not be the most accurate, my shorthand is no good and some of the speech are rather fast. For accuracy, piggo's recording would help.
Notes in no order of sequence:
- On 5 year plans (CEO)
FCL had already achieved last 5 year plan through acquisition of Australand. Key reason for Australand purchase is to tap on their expertise in AU. Moving forward, focus on SG, AU, CN.
- On Scrip Div (CFO)
Board will consider at suitable time.
- JV with Capitaland (CEO)
We are always open to opportunities if it's all right (to much laughter from board and audience)
- Any injection of TCC assets in Thailand? (CEO)
Will consider partnerships with TCC. (FCL previously had JV with another partner but that partner did not possess sufficient financial resources that FCL need to execute their strategy)
- On Development to Recurring Income ratio (CEO)
Not fixed. However, a guide is 50:50, leaning to one side or another depending on stage of property cycle.
- On China
Assets are around $1B. It is extremely difficult to secure approvals in China due to people/officials come and go, China is difficult to have central authority and enforcement. Spent many years in Songjiang (7-10?) trying to sell units. Recently after getting a good JV partner, able to sell up to 3000 units.
- Concerns on gearing. (CEO)
Mgmt highlight historical records, no right issue raised during gfc, property is capital-intensive business. Gave example, post GFC FCL was 1.1X debt gearing. Prior to Australand acquisition, gearing was 0.4X. In between, unlike other companies, FCL did not issue rights issue.
- Questions on australand being asked. (CEO)
Management thinks the overall revenue from australand will be quite good.
AU has around 150-200K housing development/year. In AU, the inner city is where a lot of developers go into, FCL consider it a shallow (small portion) of the market. FCL wants to target the mid-tier outer region of housing development (mid market) where the market is deeper and Australand able to sell more units.
Australand has been taking land bank options with partners for efficient use of capital (pay a small portion to assess the viability/profitability of project before proceeding with heavier investment later)
- Regarding Segment Information (AR section 13, page 146-147)
Corporate & Other exceptional items - due to Premium payment for F&N bonds
AUstraland loss - but to Transaction costs (payment of Australand stocks and bonds etc).
- an individual eric started a personal agenda over property dispute (i think is related to centrepoint mall property development) right after the agm ended. Very unclassy.
- this was one of the worse agm where people flocked to swipe plates and plates of food.
can't believe that people who invested in the thousands are still so greedy to eat.
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