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For property stocks, do not over commit as recent news are not conducive .....
Govt will probably come out with more levies or restrictions.....
the question is when will the announcement be made?
Govt will probably come out with more levies or restrictions.....
the question is when will the announcement be made?
what is your target?
kepoh88 ( Date: 08-Apr-2021 22:43) Posted:
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Frasers Prop deem stakes in to be listed BeerCo.. 20% ?
Sir, as you mentioned in your last sentence, we hear that the family bought up almost 90% and rumors are privatisation is in the horizon (but sometimes such fire is created by themselves to fuel share prices).
What are your thoughts on this counter doing a restructuring or even privatisation?
PS: I' m a share noob so please do enlighten us
What are your thoughts on this counter doing a restructuring or even privatisation?
PS: I' m a share noob so please do enlighten us
tangsookiam1947 ( Date: 03-Apr-2021 17:55) Posted:
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be more patient....give it another 6 months to one year...
Disappointed! They cut dividend from 6.8 cents to miserable 1.5 cents.. Such a steep cut will make sh shy away. Always can't cross 1.28 level. Many stuck at $1.57-$1.60+..I think they are waiting to get out !
tangsookiam1947 ( Date: 03-Apr-2021 17:55) Posted:
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FP should be moving soon....Even 2nd tier property counters have started to move. Once dividend is adjusted upwards, which is likely to happen in the next few quarters ahead, counter is likely be re-rated upwards to $1.5 to $1.6....
So with many REITS and properties under its fold, very easy to do financial reengineering to " create value" for shareholders.
Thai Billionaire has their skin in the game...injecting close to 90% of the Rights Issue Money ....It is akin to Temasek injecting 90% of money into their own counter. Do u think they will let the counter languish for long???
So with many REITS and properties under its fold, very easy to do financial reengineering to " create value" for shareholders.
Thai Billionaire has their skin in the game...injecting close to 90% of the Rights Issue Money ....It is akin to Temasek injecting 90% of money into their own counter. Do u think they will let the counter languish for long???
Potential to follow Capataland next.
referring to fraser property.
john_ric ( Date: 15-Mar-2021 13:20) Posted:
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any good?
current share price 1.18 is the same as rights price.
current share price 1.18 is the same as rights price.
Frasers Property: S$1.28b rights issue to build resilience
THE main goals of Frasers Property' s S$1.18-per-share rights issue, set to raise up to S$1.28 billion, are to boost its business resilience through continued exposure to industrial, logistics and business park assets, build financial agility and strengthen its balance sheet for flexibility.
The equity fundraising exercise " is really not meant to address just the free float" , as " there are many other things we' re looking to address" , said Uten Lohachitpitaks, group chief investment officer, during a virtual briefing on Monday evening.
There have been concerns that the property group' s already small free float of 13.4 per cent might shrink further after the 37-for-100 rights issue and thus affect the stock' s trading liquidity and shareholder returns.
TCC Assets (TCCA) and Thai Beverage Public Co (ThaiBev), which together hold 86.6 per cent of Frasers Property and have each undertaken to take up their pro rata share of the rights issue, could end up with nearly 89.9 per cent ownership if no minority shareholders participate. But Mr Lohachitpitaks noted that even if that happens, the company will still meet the 10 per cent free-float requirement set by the Singapore Exchange.
Besides, the rights issue is renounceable, and all shareholders have an " equal chance" to participate if they too believe in Frasers Property' s strategy, he said. " We' re also pricing it at a discount to our adjusted NAV (net asset value)... we think that' s compelling to existing shareholders," Mr Lohachitpitaks added. The issue price of S$1.18 is 47.5 per cent below the adjusted NAV per share of S$2.25, calculated based on the unaudited NAV as at Dec 31, 2020 after adjustment to reflect the rights issue.
Frasers Property on Monday lodged the offer information statement for the fundraising, first announced on Feb 10.
More than half, or S$700 million, of the estimated S$1.28 billion in net proceeds will be used to capture growth opportunities by acquiring and investing in industrial, logistics and business park properties, as well as for capital expenditure in its development pipeline of such assets.
The group expects to deliver S$739 million of industrial, logistics and business park assets in Australia and Europe over FY2021 and FY2022, based on its development pipeline as at Dec 31, 2020. This pipeline includes S$569 million in gross development value of industrial and logistics projects, such as Horsley Park in New South Wales, Dandenong South in Victoria, and Roermond in the Netherlands, as well as S$170 million of commercial workload to be delivered in FY2022 from the Macquarie Exchange business park in Victoria.
Frasers Property will announce at a later date when it has confirmed details of how it will deploy the S$700 million of rights issue proceeds.
Growth opportunities have emerged in the industrial, logistics and commercial sectors, amid the shift towards e-commerce and evolving workplace trends, Frasers Property noted. Having seen an uptick in demand within these asset classes, the group thus took the opportunity to propose the rights issue now, " to grow along with that demand" , Mr Lohachitpitaks said.
Meanwhile, about S$250 million or close to a fifth of the rights issue' s net proceeds will be allocated as seed capital to establish private funds, joint ventures or similar arrangements to invest in property assets, including commercial and ancillary assets. Such capital partnerships are an important strategy for the group, Mr Lohachitpitaks noted.
Up to S$330 million or one-quarter of the rights issue' s net proceeds will go into general corporate purposes, including working capital, transaction costs, strategic investments, acquisitions, fixed commitments, and development or redevelopment of existing assets.
Entitled shareholders, as at the record date of March 8 at 5pm, can begin to accept their rights shares and apply for excess rights shares from March 11, 9am, until March 25, 5pm. Listing and trading of the new shares is expected to start on April 5.
Frasers Property' s rights issue not a clear win for all
FRASERS Property' s latest rights issue will provide much needed cash to the listed entity, but its value to shareholders, existing and potential, is questionable.
The company' s non-underwritten 37-for-100 rights issue aimed at raising net proceeds of up to S$1.28 billion is also lacking in specifics.
The fundraising exercise may be unsurprising given the group' s gearing of 0.99 time at end-December, although the ratio would fall with the divestment of its 63.1 per cent stake in Asia RetailFund to Frasers Centrepoint Trust.
Even before the divestment, the company' s gearing level is not exceptional - GuocoLand' s was also around 1 at end-December Oxley Holdings' was 2.3 times.
Frasers Property' s rights issue is, of course, not just about strengthening its balance sheet. It intends to use 55 per cent of the proceeds to invest in and develop industrial, logistics and business park assets. Another 19 per cent is earmarked for capital partnership initiatives and about 26 per cent will be used for general corporate purposes.
Shareholders might have been better served if the company had disclosed more specifics of the deals it is pursuing and how these new initiatives will generate returns for shareholders.
For its financial year ended September 2020, Frasers Property cut its dividend by 75 per cent to preserve capital after a sharp drop in net profit and a paltry return on equity of 1.5 per cent.
One is also left to wonder why a relatively large amount of proceeds raised needs to be set aside for the catch-all general corporate purposes.
Small free float
For shareholders, another concern is the issue' s impact on the company' s free float, which currently stands at an already low 13 per cent. This affects trading liquidity, and thus shareholder returns.
TCC Assets and Thai Beverage (ThaiBev), which together own 86.6 per cent of Frasers Property, have given an irrevocable undertaking to take up their pro rata share of the rights issue. If no minority shareholders take up the rights, TCC and ThaiBev could end up with 89.9 per cent of Frasers Property.
The rights issue could, of course, pave the way for a privatisation. This could be a good outcome for all, given the already limited float of the counter.
Other funding options
Could other funding options have been pursued so as not to endanger the counter' s public float?
The Singapore Exchange managed to place out a zero coupon convertible bond with maturity in 2024 early this month.
Perhaps Frasers Property could take on more debt to respond quickly to exciting new opportunities. A spike in gearing could be short term if proceeds from ongoing development projects are realised or investment assets monetised.
More active capital recycling is another avenue for funding if it wants to capture trends accelerated by the pandemic.
Assets that the group can divest to third parties or trusts where it is the sponsor include trophies like The Centrepoint and Valley Point with book values of S$646 million and S$347 million, respectively. Frasers Property is sponsor for Frasers Centrepoint Trust, Frasers Logistics & Commercial Trust, and Frasers Hospitality Trust. The group also owns various serviced residences across Singapore, China, Australia, Europe and the United Kingdom.
Its decision to invest in growth segments or assets may be well intentioned, but could be better executed.
Frasers Property proposes 37-for-100 rights issue at S$1.18 per share
FRASERS Property has proposed to undertake a renounceable non-underwritten rights issue on the basis of 37 rights shares for every 100 existing shares, at an issue price of S$1.18 for each rights share.
It will allot and issue up to 1.09 billion rights shares, and if fully subscribed, will raise net proceeds of about S$1.28 billion.
Already, two of Frasers Property' s controlling shareholders, TCC Assets (TCCA) and Thai Beverage Public Co (ThaiBev) have given an irrevocable undertaking to subscribe for an aggregate of 940.17 million, or 86.63 per cent of the rights shares.
TCCA - which holds a 58.51 per cent stake in the company - is subscribing for some 634.98 million shares. In the case of ThaiBev, its indirect wholly-owned subsidiary, InterBev Investment (IBI) - which controls 28.12 per cent of Frasers Property - will subscribe for 305.19 million rights shares, being IBI' s entitlement of rights shares.
The issue price of the rights shares represents a discount of 4.8 per cent to the closing price of S$1.24 per share on Wednesday, and a discount of 3.6 per cent to the theoretical ex-rights price of S$1.224 per share based on the last traded price prior to the announcement.
Frasers Property said that it intends to utilise the net proceeds for the acquisition, investment, capital expenditure and development of industrial, logistics, and business park assets. About 54.7 per cent of the net proceeds raised will be used for this purpose.
Meanwhile, 19.5 per cent of the net proceeds will go to the establishment of private funds, joint ventures, or similar arrangements to invest in property assets, including that of commercial and ancillary assets.
Finally, the remaining 25.8 per cent of the net proceeds will be used for general corporate purposes, including transaction costs, strategic investments, acquisitions, fixed commitments, and development or redevelopment of existing assets.
In a bourse filing late on Wednesday, Frasers Property said that prevailing macroeconomic, social and geopolitical uncertainties have led to " added challenges to business whilst concurrently giving rise to new opportunities and trends" , especially in the areas of e-commerce adoption, the drive to build supply chain resiliency, as well as the reimagining of spaces.
The rights issue will thus " enhance the group' s ability to be agile and responsive to these trends, leverage its track record to capitalise on the above opportunities, and enable the group to prepare a future-ready business" .
Frasers Property reports lower RevPAR in Q1 for hospitality portfolio
REAL estate developer and manager Frasers Property reported lower revenue per average room (RevPAR) for the first quarter across its hospitality properties globally.
Its hotel operating performance across the Asia-Pacific, Europe and UK in November 2020 were &ldquo significantly below pre-Covid levels&rdquo , it said.
In a business update on Friday, it noted that in North Asia, RevPAR declined 24.9 per cent from a year earlier to S$67.40. In the Asia-Pacific ex-North Asia, RevPAR fell 43.9 per cent to S$99.
RevPAR dropped 68.7 per cent to S$54.30 year on year in Europe.
Frasers Property also registered a lower average occupancy rate (AOR) across the board.
AOR in Europe fell 54.1 percentage points to 29.4 per cent, affected by the lockdown as well as travel restrictions and quarantine measures.
North Asia AOR fell 16.1 percentage points to 52.9 per cent. It remained &ldquo relatively resilient&rdquo , supported by a long-stay base.
AOR for the Asia-Pacific ex North Asia noted the smallest drop, edging down 7.6 percentage points to 75.7 per cent.
This was in part of the long-stay base for apartments, which cushioned a weak transient market, said Frasers Property.
The group said that its aim is to maintain stability while standing ready for opportunities, amid near-term uncertainties and challenges in the operating environment this year.
The firm is now &ldquo actively planning&rdquo for regional and global campaigns to prepare for upcoming travel corridors while concurrently reviewing cost management measures, it noted.
Plans are to target domestic tourism and prepare for upcoming openings. These include Fraser Suites Pazhou in Guangzhou, Modena Nanjing, Fraser Residence Hanoi, and Capri by Fraser Bukit Bintang.
Nonetheless, Frasers Property said that it will take proactive steps to &ldquo manage gearing and extend debt maturities&rdquo , and is &ldquo well-positioned&rdquo on repayment or refinancing debts due in FY2021.
Total debt excluding real estate investment trusts (Reits) was S$12.9 billion, with an average debt maturity of 2.6 years.
Net debt as at Dec 31, 2020 stood at S$15.91 billion, marginally higher from S$15.87 billion a quarter ago. Net debt to equity ratio dropped 5.7 percentage points to 99.3 per cent.
Its first-quarter retail and commercial portfolio metrics in Singapore &ldquo remained healthy&rdquo , said the real estate firm. Retail occupancy stood at 94.4 per cent on an enlarged portfolio, while commercial occupancy &ldquo improved&rdquo to 92.9 per cent. Commercial occupancy grew 14.1 percentage points during the quarter following lease sign-ups on the completion of asset enhancement initiatives (AEIs) at Alexandra Technopark and Cross Street Exchange, said the group.
It sold 48 units for its residential portfolio, with an unrecognised revenue of S$100 million.
The group noted that about 27 per cent of retail leases and around 9 per cent of commercial leases are due to be renewed in the remainder of FY2021.
In Australia, Frasers Property said it has maintained a &ldquo resilient development business despite economic volatility&rdquo .
It sold 699 units during the first quarter. Burwood Brickworks in Victoria and Shell Cove in New South Wales were some of its biggest contributors. Unrecognised revenue stood at S$1.3 billion.
Frasers Property recorded a weighted average lease expiry (WALE) of 4.0 years for its Australia office portfolio, and WALE of 8.8 years for its retail portfolio in the country.
Meanwhile, Frasers Property in the first quarter of FY2021 saw a &ldquo healthy&rdquo take-up for industrial and logistics space in Australia and Europe, it noted. It has 11 new assets totalling 304,923 sq m planned for completion over the next two years.
In Thailand, the developer said its diversified investment portfolio has provided resilience the group sold 1,636 units, bringing unrecognised revenue to S$71 million.
In Vietnam, the development of Q2 Thao Dien in Ho Chi Minh City is progressing ahead of schedule with completion expected by the second quarter of FY21.
Frasers Property unit to sell entire stake in China property business
FRASERS Property announced on Thursday that its subsidiary is looking to sell its stake in Beijing Fraser Suites Real Estate Management for 1.6 billion yuan (S$327.5 million).
Its subsidiary Excellent Esteem has entered into a sale and purchase agreement with a joint venture (JV) company established by Tishman Speyer RMB Funds and Shanghai Dowell Trading, to dispose its entire shareholding interest in Beijing Fraser Suites.
Beijing Fraser Suites is a wholly owned subsidiary of Excellent Esteem, and owns an apartment project named Beijing Fraser Suites International Apartment in China.
The proposed divestment is in the ordinary course of business of the company, said Frasers Property in its regulatory update.
The purchase price, which will be satisfied in cash, was arrived at after arm' s length negotiations on a willing buyer and willing seller basis, determined based on the assets and liabilities of Beijing Fraser Suites as at Dec 31, 2020. The JV company has paid 20.5 million yuan to Excellent Esteem as earnest monies pursuant to a letter of intent signed by the parties.
Assuming that the proposed divestment had been completed on Sept 30, 2020, the net tangible asset per share will be S$2.37, up from S$2.34 before the divestment. Earnings per share, after fair value change and exceptional items, will be 6.19 Singapore cents from 3.81 Singapore cents.
The financial effects are shown for illustrative purposes and do not necessarily reflect the exact future financial position and performance of the group immediately after the disposal, said Frasers Property.
New solar plant at Horsley Park commercial property helps Frasers enter energy retail
https://www.architectureanddesign.com.au/news/solar-plant-at-horsley-park-commercial-property
Looks like Fraser Property is into Solar Energy Renewal...
Global Population has been increasing very seconds...
https://www.worldometers.info/world-population/
Demand for Properties Ownership will be increasing...
Looks like the Property Sectors are looking great...
https://www.worldometers.info/world-population/
Demand for Properties Ownership will be increasing...
Looks like the Property Sectors are looking great...
up up and up!!!
Bad result.
div 1.5 cents
div 1.5 cents
Frasers Property full-year profit tumbles 66.4% on Covid-19 hit
WED, NOV 11, 2020 - 8:35 AM
UPDATED WED, NOV 11, 2020 - 10:03 AM
REAL estate developer and manager Frasers Property has posted a 66.4 per cent drop in net profit to S$188.1 million for the full year ended Sept 30, 2020 from S$560.3 million a year ago.
This is in line with its profit guidance released last month and comes as earnings were hit by the Covid-19 pandemic, the mainboard-listed group said in a regulatory filing on Wednesday.
Earnings per share after fair value change and exceptional items stood at 3.81 Singapore cents for the full year, down from 15.94 cents in the preceding year.
Revenue slipped 5.1 per cent to S$3.6 billion, from S$3.79 billion a year earlier. Meanwhile, profit before interest, fair value change, taxation and exceptional items fell 3.6 per cent on the year to S$1.25 billion, from S$1.29 billion last year.
https://www.businesstimes.com.sg/companies-markets/frasers-property-full-year-profit-tumbles-664-on-covid-19-hit
WED, NOV 11, 2020 - 8:35 AM
UPDATED WED, NOV 11, 2020 - 10:03 AM
REAL estate developer and manager Frasers Property has posted a 66.4 per cent drop in net profit to S$188.1 million for the full year ended Sept 30, 2020 from S$560.3 million a year ago.
This is in line with its profit guidance released last month and comes as earnings were hit by the Covid-19 pandemic, the mainboard-listed group said in a regulatory filing on Wednesday.
Earnings per share after fair value change and exceptional items stood at 3.81 Singapore cents for the full year, down from 15.94 cents in the preceding year.
Revenue slipped 5.1 per cent to S$3.6 billion, from S$3.79 billion a year earlier. Meanwhile, profit before interest, fair value change, taxation and exceptional items fell 3.6 per cent on the year to S$1.25 billion, from S$1.29 billion last year.
https://www.businesstimes.com.sg/companies-markets/frasers-property-full-year-profit-tumbles-664-on-covid-19-hit