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Frasers Logistic & Industrial Trust IPO
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john_ric
Supreme |
27-Jan-2022 21:52
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the rate hike is not a surprised one. managers of reits should be able to mitigate the effect. | ||||
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PhillipTan
Supreme |
27-Jan-2022 21:40
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https://seekingalpha.com/article/4476187-rising-interest-rates-are-good-for-reits I may be wrong, but I think dropping reit price due to rate hikes is a good time to pick them up cheap Should have sold them earlier on, but missed out on the timing to sell them So now I just nibble bit by bit when they drop AREIT drop seems to be over FLCT may drop a bit more I think or just hovering at best DYODD though
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PhillipTan
Supreme |
27-Jan-2022 19:06
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Nibbled some at $1.40 today lol |
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Lobster
Elite |
26-Jan-2022 15:31
Yells: "Even Adam Khoo believes in the Black Market!" |
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It' s 52 week high is $1.54. which also done earlier this month. Now drop of 10cents, after market softening these few weeks. Others bluer REITs like CICT, MIT, KDC, dropped even much much more. $1.20? Wishing for too much la.... but remember it' s nav is $1.25. So, imo, needs an atomic bomb to achieve that. But wish you luck anyway...
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john_ric
Supreme |
26-Jan-2022 12:58
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but its share price keep dropping. may touch 1.2 series | ||||
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john_ric
Supreme |
26-Jan-2022 12:16
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The net divestment proceeds may be used to fund potential acquisition opportunities, finance capital expenditure, repay existing debt, make distributions to FLCT& rsquo s unitholders and/or other general corporate requirements. looks like next dpu may be more. |
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Joelton
Supreme |
26-Jan-2022 09:53
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FLCT to divest Cross Street Exchange for S$810.8m
FRASERS Logistics and Commercial Trust (FLCT) Frasers L& C Tr: BUOU -0.69%, through its sub-trust Frasers Commercial Trust, will be divesting its remaining leasehold interest in its mixed-use commercial property (see amendment note), Cross Street Exchange, for S$810.8 million.
In a press statement on Tuesday (Jan 25), FLCT' s manager said the price tag represents a premium of 28.3 per cent to 18, 20 and 22 Cross Street' s book value of S$632 million on Sep 30, 2021.
The net proceeds from the divestment are approximately S$802.7 million, after divestment fees of S$4.1 million and other divestment-related expenses.
The net proceeds of the divestment will be used to fund potential acquisition opportunities, finance capital expenditure, repay existing debt, make distributions to unitholders of FLCT and/or other general corporate requirements.
Following the divestment, FLCT' s portfolio weighting towards logistics and industrial will increase to 66.9 per cent, from 61.1 per cent previously.
The transaction is expected to enhance FLCT' s portfolio metrics with a higher overall portfolio occupancy rate of 97.1 per cent, up from 96.2 per cent, and a longer weighted average lease expiry (WALE) profile of 5 years, up from 4.8 years.
It will also lower the trust' s aggregate leverage to 29.3 per cent from 33.7 per cent on a pro-forma basis, assuming that 49.2 per cent of the net proceeds are used to repay outstanding debt. This will translate to debt headroom of more than S$3.01 billion post divestment, said FLCT' s manager.
Robert Wallace, chief executive of the Reit manager, said: " The divestment will enhance our portfolio metrics with a higher overall portfolio occupancy rate and longer WALE and will provide FLCT with significant financial strength and flexibility."
Real estate agent JLL, which advised and managed the sale, said in a separate Tuesday statement that the property comes with approximately 74 years remaining on its 99-year leasehold tenure.
Cross Street Exchange comprises 305,739 square feet (sq ft) of office net leasable area (NLA).
The agent also highlighted that it underwent extensive upgrading works in 2019 to rejuvenate and reposition the property&rsquo s retail podium, which comprises 87,109 sq ft of NLA.
&ldquo Core Singapore assets remain the preferred investors&rsquo real estate strategies given that the upside fundamentals of the broader market have remained solid throughout 2 years of global uncertainty. This transaction proves that the allure of Central Business District (CBD) office space remains high and that investors also see longer potential in retail opportunities offered in mixed-use developments,&rdquo commented Ting Lim, executive director and head of capital markets (Singapore), JLL.
The purchaser is an undisclosed third party. The divestment is expected to be completed on Mar 31, 2022.
In its statement, the manager said its proposed divestment of the non-core leasehold CBD commercial property is in line with its proactive asset management and portfolio rebalancing strategies.
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Lobster
Elite |
25-Jan-2022 08:45
Yells: "Even Adam Khoo believes in the Black Market!" |
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Wow, this is huge. This stock quite resilient, hardly drop...
Frasers Logistics & Commercial Trust to divest Cross Street Exchange in Singapore for S$810.8 million |
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Joelton
Supreme |
17-Jan-2022 09:43
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FLCT banks on scale, industrial sector strength
Aside from post-merger enlargement and an expanded investment mandate, fund-throughs and rentals are also potential opportunities for growth.
UNDERTAKING major corporate action in the thick of " the crisis of a generation" could easily be disastrous. But, for Frasers Logistics & Commercial Trust (FLCT), it has been a blessing in disguise.
The S$1.6 billion merger between Frasers Logistics & Industrial Trust (FLT) and Frasers Commercial Trust to create FLCT was mooted in early December 2019 and completed in mid-April 2020 - just as the Covid-19 pandemic forced countries around the globe into lockdowns.
But the manager of the enlarged real estate investment trust (Reit) believes the scale from the merger and the expansion of its investment mandate may have helped FLCT thrive in spite of the pandemic.
" Diversification is a benefit, particularly when you' re going through challenging periods like a pandemic," said Robert Wallace, chief executive officer of FLCT' s manager. " Our mandate has now expanded&hellip and that has enabled us to grow and acquire assets that we weren' t able to look at before."
He cited the Blythe Valley Park business park in the United Kingdom, which was among the 6 Europe properties that the Reit proposed in May 2021 to acquire for a total property purchase price of S$548.7 million.
" That property actually has an adjoining industrial component. If we didn' t have that expanded mandate, I don' t think we would have been able to buy the industrial component," Wallace said.
Since the completion of the merger on Apr 15, 2020, FLCT has seen its unit price soar 46.5 per cent to S$1.45 as at Jan 14, 2022, with an annualised total return of 30.1 per cent.
But it should be noted that these figures are off a low base as pandemic panic had sent units of FLCT plunging to as low as S$0.665 on Mar 23, 2020 - just weeks before completion of the merger.
Even compared to FLT' s price of S$1.24 when the merger was first proposed on Dec 2, 2019, however, the counter has done relatively well - up 16.9 per cent and with an annualised total return of 13.8 per cent.
FLCT has also outperformed other merged S-Reits.
Ascott Residence Trust is down 20.3 per cent since the effective date of its merger with Ascendas Hospitality Trust, with an annualised total return of negative 6.5 per cent OUE Commercial Reit has lost 16.3 per cent since its merger with OUE Hospitality Trust, with an annualised total return of negative 2.8 per cent while ESR-Reit has dipped 2.7 per cent since its merger with Viva Industrial Trust, but has managed to record an annualised total return of 6 per cent.
Even Singapore' s largest Reit, CapitaLand Integrated Commercial Trust (CICT), has only managed to register a price gain of 5.2 per cent, with an annualised total return of 9.1 per cent, since the effective date of the merger between CapitaLand Mall Trust and CapitaLand Commercial Trust.
" Obviously, the pandemic has been a challenge when it comes to office occupancy," Wallace said. " From an office perspective - in Singapore, at least - we' ve seen some challenges, particularly for the retail component of office buildings because they haven' t had the patronage that they' ve seen in the past."
But the pandemic has been a boon for the industrial sector, he said: " We can see that there' s obviously been strong growth in e-commerce in all of the major markets that we' re in, which has resulted in very healthy space take-up in Australia, Germany, the Netherlands and the UK, and we' ve seen very strong rental growth.
" In fact, in most of those markets, we' re anticipating future rental growth as a result as well."
Index addition
Post-merger, FLCT has grown from strength to strength. For the FY2021 ended Sep 30, the Reit posted a 7.9 per cent increase in distribution per unit (DPU) - to 7.68 Singapore cents from 7.12 cents in the previous year.
FY2021 revenue rose 41.4 per cent to S$469.3 million and adjusted net property income jumped 37.5 per cent to S$355.2 million. The increase was attributed to the full-year effect of the merger, new acquisitions and early surrender fee received from various tenants.
The enlarged Reit also earned its place on the benchmark Straits Times Index (STI) in April 2021.
" I really think it' s probably the merger that was the big contributor, which resulted in us being a constituent of the STI," Wallace said. " What we have seen is certainly a larger volume in units traded on a daily basis - we' re around about 10 million units per day now, on average."
" Certainly, the inclusion in the index has helped," he added. One of the merits of the merger had been a combined market capitalisation of S$4.2 billion that would have placed the enlarged Reit as ninth-largest S-Reit then. Its market capitalisation has since grown to S$5.3 billion - ranking it as the sixth-largest S-Reit currently.
It has grown its portfolio too.
Apart from the 6 freehold properties in Germany, the Netherlands and the UK that it acquired last year for S$548.7 million, FLCT also acquired a freehold warehouse property in the UK for £ 28.3 million (S$51.5 million).
At the same time, it divested a non-core asset - a leasehold property in Port Melbourne, Victoria, Australia - for a consideration of A$42.5 million (S$41.7 million). This was more than double the property' s book value of A$21 million as at Sep 30, 2021. FLCT had forked out A$21.7 million for the property at its initial public offering in 2016.
" We still have been quite active and we' d look to, in a measured way, continue to pursue growth opportunities," Wallace said. " We' d like to grow with an industrial bias, as much as we can, supported by business park acquisitions."
But he also stressed that FLCT does not have any targets on the value or number of acquisitions it aims to make. " We don' t like to be led by targets we' d like to be led by opportunities," he said. " We' d like to look at every opportunity, and if it makes sense from a portfolio perspective, we' ll go and look to acquire that portfolio," he added.
Expansion opportunities
Wallace anticipates that the Reit could look for opportunities to grow its presence in Germany, the Netherlands and the UK, as well as explore adjoining markets such as France, Belgium, or Spain.
" I would probably, at this point in time, say that there' s more growth potential in Europe than there is in Australia," Wallace said.
Australia accounted for 45.5 per cent of FLCT' s portfolio value as at Sep 30, 2021. " We' re not looking to reduce our portfolio in Australia," Wallace said. " We' ll look to grow it as much as we can as well, so it' ll always be a major market."
But he noted that capitalisation rates in Australia have compressed by " 100 basis points at least" . " It' s harder to get accretive acquisitions (in Australia), so that may result in us being more involved in, say, development participation," Wallace said.
FLCT may also consider " funded throughs" with other developers or with a joint venture partner. " A fund through is when you actually buy something that hasn' t been built yet. So you buy it from a third party - they will build it and then you will fund that through the development of the property," he said, calling it " an efficient way of buying properties" .
As at end-September 2021, FLCT' s aggregate leverage stood at 33.7 per cent - translating to a debt headroom of around S$2.5 billion.
But Wallace said that the Reit manager was comfortable with keeping the gearing ratio at under 40 per cent. " If we got to 40 per cent, we would be uncomfortable. (Under 40 per cent is) certainly the range that we' d like to be in. And that does give us some opportunities to use our balance sheet to potentially find some new opportunities," he said.
Apart from potential acquisitions and development, Wallace said the third prong for growth would be rental growth.
" There' s also growth available through some of the vacancy opportunities in our commercial portfolio as well," he said. " I think there' s reasonably good market rental growth that we have seen and hopefully we' ll continue to see in some of the major industrial markets that we' re in, such as Australia."
As at end-September, FLCT' s portfolio of 103 properties across 5 countries was valued at approximately S$7.3 billion - up from S$6.2 billion a year earlier. Its net asset value (NAV) per unit rose 12.7 per cent to S$1.24 as at Sep 30, 2021, from S$1.10 a year ago.
FLCT is currently trading at nearly 1.2 times its book value - lower than most of its S-Reit peers.
Mapletree Logistics Trust, Mapletree Industrial Trust, Ara Logos Logistics Trust and ESR-Reit are trading between 1.2 and 1.4 times their respective book values.
" Industrial S-Reits' pivot towards new economy assets have paid off as they continue to demonstrate their resilience throughout the Covid-19 pandemic," said DBS analysts Dale Lai and Derek Tan in a recent report. " With the continued strong demand for logistics properties and outperformance of the sector, we believe that there is potential for further cap rate compressions in (FY2022), albeit at a slower pace than FY2021," they added.
DBS has a " buy" recommendation on FLCT, with a street high target price of S$1.85. The research house has also named FLCT as one of its top picks among the industrial S-Reits.
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PhillipTan
Supreme |
28-Dec-2021 00:20
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SGX do make mistakes The people working at SGX are humans afterall lol
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Lobster
Elite |
27-Dec-2021 10:23
Yells: "Even Adam Khoo believes in the Black Market!" |
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You should get total dpu $0.0131 per unit credited on.24/8 for 2Q Sep advance dividends And $0.0257 per unit credited on 16/12 for 2Q Sep balance dpu payment. If not, call SGX. They do make mistakes. |
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marketuncle
Veteran |
27-Dec-2021 09:14
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Thanks for confirming. I' ll go check with my CPFIS broker bank on this. | ||||
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WongKheeKai
Member |
26-Dec-2021 22:31
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The payments for Dec2021 Distributions are in 3 parts: S$0.0059, S$0086 and S$0.0112, totally 2.57 cents. This is confirmed correct. | ||||
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marketuncle
Veteran |
26-Dec-2021 21:19
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Think my CPF was only credited 1+ cts only, way less than 2.57 and already not including the advance payments ... 'FLCT has declared a distribution of 2.57 Singapore cents per unit in FLCT (?Unit?), for the period from 3 June 2021 to 30 September 2021 (the ?Distribution?), comprising a tax-exempt income distribution component of 1.12 Singapore cents (the ?Tax-Exempt Income Distribution Component?), a capital component of 0.86 Singapore cents (the ?Capital Distribution Component?) and a taxable income distribution component of 0.59 Singapore cents (the ?Taxable Income Distribution Component?). Together with an advanced distribution of 1.31 Singapore cents per unit as announced on 5 August 2021 and paid on 24 August 2021 for the period from 1 April 2021 to 2 June 2021, FLCT?s total distribution for the six-month period from 1 April 2021 to 30 September 2021 amounts to 3.88 Singapore cents. " | ||||
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Noob12
Member |
26-Dec-2021 14:51
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There was a private placement in Jul, hence advance distribution in Aug. | ||||
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Noob12
Member |
26-Dec-2021 14:47
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I think, part of it was paid in Aug. Dividend for this stock is twice yearly.
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john_ric
Supreme |
26-Dec-2021 14:37
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still much better than fix dep.
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marketuncle
Veteran |
25-Dec-2021 11:08
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Strange, just realised the dividend on 16 Dec was much lower than expected 2.57 cts. (mine was bought with CPF, so need to wait for dec statement to be out to confirm). Anyone with the same experience? | ||||
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Lobster
Elite |
03-Dec-2021 17:39
Yells: "Even Adam Khoo believes in the Black Market!" |
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Wow. 100% profits! | ||||
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PhillipTan
Supreme |
03-Dec-2021 10:22
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FLCT divests leasehold property in Melbourne, Australia for A$42.5mFrasers Logistics & Commercial Trust (FLCT) is proposing to divest a leasehold property in Port Melbourne, Victoria, Australia, for a consideration of A$42.5 million (S$41.7 million).FLCT' s manager has entered into a sale and purchase agreement with an unrelated third-party purchaser for the sale of the property at 2-24 Douglas Street, it said in a bourse filing on Thursday night (Dec 2). The consideration is at a premium to the property' s book value of A$21 million as at Sep 30, 2021, and to the original purchase price of A$21.7 million at FLCT' s initial public offering in 2016. The Reit (real estate investment trust) manager expects net proceeds from the investment will be A$38.5 million, which may be used to fund potential acquisition opportunities, reduce existing debt and/or other general corporate purposes. Robert Wallace, chief executive officer of the Reit manager, noted that the divestment will provide the Reit with greater financial strength and flexibility. " It is a timely divestment that resonates well with our strategy to realise value from non-core properties," he said. The property comprises 2 industrial buildings and has a total lettable area of 21,803 square metres. It had accounted for 0.7 per cent of the Reit' s net property income for FLCT' s financial year ended Sep 30, 2021, and as at Sep 30, it accounted for around 0.3 per cent of the Reit' s portfolio value. The proposed divestment is expected to be completed by the first half of 2022. |
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