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Frasers CentrePoint Trust
23-04-2014, 11:01 PM. (This post was last modified: 23-04-2014, 11:01 PM by LittleBoyInvestor.)
Post: #41
RE: Frasers CentrePoint Trust
(23-04-2014, 08:43 AM)sunrocker Wrote: Pg 7 of the presentation slides.

Income available for Distribution: 46,520
Distribution to Unitholders: 44,432

5% retained?

Yup, S$2m was retained last quarter.

[Image: GTqFeMk.png]

Q2FY2013 Payout ratio is 100%

[Image: e1eFAGP.png]



FCT's Current gearing is 27.7%.
Regarding the acquisition of Changi City Point for $305m. FCT expects to fund half by private placement and half by borrowings. So am I right to assume gearing will rise to

($589m + $150m) / ( $2,128m + fair value of Changi City Point) = Approx 30+%

(Vested)
Little Boy
http://littleboyinvestment.blogspot.sg

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24-04-2014, 02:31 PM.
Post: #42
RE: Frasers CentrePoint Trust
thanks for the correction.

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24-04-2014, 02:39 PM.
Post: #43
RE: Frasers CentrePoint Trust
(23-04-2014, 11:42 AM)NTL Wrote:
(23-04-2014, 08:43 AM)sunrocker Wrote: Pg 7 of the presentation slides.

Income available for Distribution: 46,520
Distribution to Unitholders: 44,432

5% retained?

The $2M retained was last quarter.

Is the idea is to save up some earnings in a good quarter, and use it in future to compensate for bad quarters?

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25-04-2014, 09:16 AM.
Post: #44
RE: Frasers CentrePoint Trust
(24-04-2014, 02:39 PM)gzbkel Wrote:
(23-04-2014, 11:42 AM)NTL Wrote:
(23-04-2014, 08:43 AM)sunrocker Wrote: Pg 7 of the presentation slides.

Income available for Distribution: 46,520
Distribution to Unitholders: 44,432

5% retained?

The $2M retained was last quarter.

Is the idea is to save up some earnings in a good quarter, and use it in future to compensate for bad quarters?
imho, Financial Engineering or even "Window Dressings" happens all the time if even on the borderline of the Laws if necessary.

Don't we all try to present the best sides of ourselves all the time if possible. Some even go to the extend of faking it. Some people believe faking it until it becomes real. The problem is before you have the chance to make it real, you might be exposed as phoney.
And the worst is you can bluff the the whole world but you can't bluff yourself. You will cave-in one day when you can't recognize who is the image in the mirror anymore.........
So we carry on searching for the "Real Thing" in the market.
But have we found our "Real Self"?
Are you still searching?
For what!?
=========== Signature ===========
WB:-

1) Rule # 1, do not lose money.
2) Rule # 2, refer to # 1.
3) Not until you can manage your emotions, you can manage your money.

Truism of Investments.
A) Buying a security is buying RISK not Return
B) You can control RISK (to a certain level, hopefully only.) But definitely not the outcome of the Return.

NB:-
My signature is meant for psychoing myself. No offence to anyone. i am trying not to lose money unnecessary anymore.

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25-04-2014, 03:17 PM.
Post: #45
RE: Frasers CentrePoint Trust
(23-04-2014, 11:01 PM)LittleBoyInvestor Wrote: FCT's Current gearing is 27.7%.
Regarding the acquisition of Changi City Point for $305m. FCT expects to fund half by private placement and half by borrowings. So am I right to assume gearing will rise to

($589m + $150m) / ( $2,128m + fair value of Changi City Point) = Approx 30+%

In the previous 2 acquisitions, they used debt/equity ratio that resulted in 33.5% and 33.2% gearing post acquisition.

Assuming they are focusing on ending with somewhat similar gearing, then

($589m + 0.7 x 312.5m) / ( $2,128m + 312.5m) = 33.1%

ie 70/30 debt/equity ratio.

This implies placement of roughly 50+m units depending on placement price, much smaller than the 152m, 137m units placed out in the previous acquisitions. If the assumptions are correct, it will be relatively easier for the market to absorb being only approx 6.5% of units outstanding and yield accretive.

Let's see if the upcoming circular bears this out.

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25-04-2014, 03:24 PM.
Post: #46
RE: Frasers CentrePoint Trust
(25-04-2014, 09:16 AM)Temperament Wrote:
(24-04-2014, 02:39 PM)gzbkel Wrote:
(23-04-2014, 11:42 AM)NTL Wrote: The $2M retained was last quarter.

Is the idea is to save up some earnings in a good quarter, and use it in future to compensate for bad quarters?
imho, Financial Engineering or even "Window Dressings" happens all the time if even on the borderline of the Laws if necessary.

Don't we all try to present the best sides of ourselves all the time if possible. Some even go to the extend of faking it. Some people believe faking it until it becomes real. The problem is before you have the chance to make it real, you might be exposed as phoney.
And the worst is you can bluff the the whole world but you can't bluff yourself. You will cave-in one day when you can't recognize who is the image in the mirror anymore.........
So we carry on searching for the "Real Thing" in the market.
But have we found our "Real Self"?
Are you still searching?
For what!?

The quarterly income and distributions can sometimes be quite lumpy Q to Q due to parts of mall shut down for AEI or outfitting for new tenants, heavier maintenance costs at times, etc. Hence sometimes the retention is an attempt to smoothen out the distributions - rightfully labelled as financial engineering but the more benign type... Wink

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26-04-2014, 07:12 AM.
Post: #47
RE: Frasers CentrePoint Trust
Thanks for the insight!

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26-04-2014, 10:29 AM.
Post: #48
RE: Frasers CentrePoint Trust
(25-04-2014, 03:24 PM)swakoo Wrote:
(25-04-2014, 09:16 AM)Temperament Wrote:
(24-04-2014, 02:39 PM)gzbkel Wrote:
(23-04-2014, 11:42 AM)NTL Wrote: The $2M retained was last quarter.

Is the idea is to save up some earnings in a good quarter, and use it in future to compensate for bad quarters?
imho, Financial Engineering or even "Window Dressings" happens all the time if even on the borderline of the Laws if necessary.

Don't we all try to present the best sides of ourselves all the time if possible. Some even go to the extend of faking it. Some people believe faking it until it becomes real. The problem is before you have the chance to make it real, you might be exposed as phoney.
And the worst is you can bluff the the whole world but you can't bluff yourself. You will cave-in one day when you can't recognize who is the image in the mirror anymore.........
So we carry on searching for the "Real Thing" in the market.
But have we found our "Real Self"?
Are you still searching?
For what!?

The quarterly income and distributions can sometimes be quite lumpy Q to Q due to parts of mall shut down for AEI or outfitting for new tenants, heavier maintenance costs at times, etc. Hence sometimes the retention is an attempt to smoothen out the distributions - rightfully labelled as financial engineering but the more benign type... Wink
You are right about the "smoothen" parts. i observed even the sale manager (was working in a Trading House) did it in every year's budget. Because life is not everyday a Sunday. Rightfully, They have to do it.
=========== Signature ===========
WB:-

1) Rule # 1, do not lose money.
2) Rule # 2, refer to # 1.
3) Not until you can manage your emotions, you can manage your money.

Truism of Investments.
A) Buying a security is buying RISK not Return
B) You can control RISK (to a certain level, hopefully only.) But definitely not the outcome of the Return.

NB:-
My signature is meant for psychoing myself. No offence to anyone. i am trying not to lose money unnecessary anymore.

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12-05-2014, 07:43 PM.
Post: #49
RE: Frasers CentrePoint Trust
http://infopub.sgx.com/FileOpen/Changi-C...eID=296721

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30-05-2014, 04:16 PM.
Post: #50
RE: Frasers CentrePoint Trust
http://infopub.sgx.com/Apps?A=COW_CorpAn...cement.pdf

http://infopub.sgx.com/Apps?A=COW_CorpAn...cement.pdf

FCT continues to set the gold standard for acquisition of properties by reits (even after takeover by Thai towkay):

- existing unitholders do not need to pony up more cash eg. no renounceable rights issues

- and yet existing unitholders receive more distribution payout ie yield accretive, not dilutive

- gearing remains low post acquisition, around 30% gearing

- no visible financial engineering involved eg. no income support needed, no use of backend loaded convertible bond debt

A very rare breed of S-reits.

Potentially bodes well for later listing of FHT by FCL.

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