Guru greengiraffe, thank you for your kind sharing.
No worries. I m just a neck long face green giraffe always having it hard unlike other buddies whose picks are much swifter, easier and plummer.
Strangely, we are still awaiting for FCL announcement on China Sq Capri and the Sale of Collin Street, Melbourne.
It appears that FCL is making a small loss of S$4m on Collins St based on last reported valuation as per Annual Report.
GG
(27-04-2015, 11:13 PM)Contrarian Wrote: [ -> ]Guru greengiraffe, thank you for your kind sharing.
DBS Vickers:
Asset recycling strategy to pay off
Recycling capital through proposed sale of 357
Collins Street for AUD$224m
Hotel development at China Square Central to reap
rewards in the longer term
Maintain BUY, TP raised to S$2.36
Recycling capital through proposed sale of 357 Collins
Street for AUD $224m. Frasers Centerpoint Limited (FCL)
has announced the proposed sale of 357 Collins Street in
Melbourne for a consideration of AUD$224m (S$237m @
SGD:AUD exchange rate of 1.05) to its managed REIT,
Frasers Commercial Trust (FCOT). This is a prime property
located in downtown Melbourne ( 95.5% occupancy rate)
and was part of the c.A$1.2bn commercial portfolio when
the group acquired Australand. The purchase price
approximates the book value of the property as of Sept’14.
Post sale, FCL will derive recurring income through higher
management fees as Manager of FCOT.
A new ‘Capri by Fraser’ hotel to rise in China Square
Central. FCL will also acquire the development rights and
80-year remaining leasehold interest for a 16k sqm GFA site
which is zoned for hotel development at China Square
Central (CSC). The plan is for an integrated development at
the site with a new c.300 hotel wing. We understand that
there will be a new ‘Capri by Fraser’ upon completion of this
development. Our back-of-the envelop calculation indicates
total development cost of c.S$238m (inclusive of DC
premium, construction cost), which we expect to be fully
funded from internal resources or from the sale proceeds
from the property at 357 Collins Street.
Asset recycling strategy in motion; TP raised to S$2.36.
We remain excited about the prospects of the group and
with a myriad of opportunities from recycling capital from its
portfolio of stabilized properties (hotel, office and retail) to
its listed REITs. We expect more of such recycling activities to
feature going forward and thus cut our RNAV discount rate
from 40% to 30%, leading to a higher TP of S$2.36.
today drop quite considerably. Perhaps due to the proposed tax by the Australia government. Next upside is would be after this friday, when the quarter report has been released! In the meantime, can consider to accumulate if it drops further! Huat ah!
Vested
will the proposed tax affect FCL negatively?
The properties they sell in AUSTRALIA are in the suburbs, the ones bought by locals.
Ruling won't hit them too hard.
On a half - year basis, FCL’s revenue and PBIT rose 52% and 28% from the previous corresponding period (“1H FY13/14”) to S$1.5 billion and S$477 million respectively. T he growth was fuelled primarily by residential project completion s in Australia and China , as well as a new stream of contribution from the six hotels acq uired by FHT from the TCC Group . Consequently, a ttributable profit rose 73% year - on - year to S$330 million in 1H FY14/15. This translates to earnings per share 6 (“EPS”) of 7.9 Singapore cents in 1H FY14/15, while net asset value per share (“NAV per Share”) amounted to S$2.20. The Group’s EPS figures reported for 1H FY14/15 and 1H FY13/14 are not comparable as the former are calculated based on FCL’s post - recapita lisation weighted average issued share capital whereas the latter were calculated based on FCL’s pre - recapitalisation weighted average issued share capital 7
earnings up... but EPS dropped a lot to 7.9 cents only... how come????? is it due to the issue of perp securities?
Next quarter result should be better due to North Residence!