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Frasers Centrepoint Trust files S$2.6 million claim against mm2 Asia over Causeway Point lease
It includes 12% annual interest, damages, costs and other reliefs
[SINGAPORE] Frasers Centrepoint Trust has filed a S$2.6 million claim against mm2 Asia, said the entertainment group on Monday (Oct 27), after it guaranteed lease obligations of its now-closed cinema unit at Causeway Point.
The claim arises from a deed of guarantee signed by mm2 Asia in December last year in favour of HSBC Institutional Trust Services, the trustee of FCT, covering lease obligations of Cathay Cineplexes.
The originating claim and statement of claim, dated Oct 23, were received by mm2 on Friday. It includes interest charge of 12 per cent, damages, costs and other reliefs.
The former cinema chain is currently undergoing voluntary liquidation, having ceased operations on Sep 1.
Cathay Cineplexes in July received repayment demands from FCT for a sum exceeding S$3.3 million in rental arrears and for other items for its outlets at Century Square and Causeway Point.
The latest claim follows Standard Chartered&rsquo s payment demand on Thursday for S$905,000 of debt.
On Aug 4, mm2 said it has received eight letters of demand for a total of S$17.6 million outstanding, but can continue as a going concern. The company had also brought in a restructuring specialist.
RHB lifts Frasers Centrepoint Trust target price by 10.2% on improved H2 earnings, asset enhancements
DBS and RHB maintain their &lsquo buy&rsquo calls on FCT
[SINGAPORE] RHB raised its target price for Frasers Centrepoint Trust (FCT) : J69U -0.41% and maintained its &ldquo buy&rdquo rating, citing steady H2 earnings alongside tailwinds from asset enhancements and falling interest rates.
This comes as FCT on Thursday (Oct 23) posted a higher H2 distribution per unit of S$0.06059, as its revenue rose 14.3 per cent to S$205.2 million and net property income grew 12 per cent to S$144.3 million.
RHB on Friday lifted its target price for FCT from S$2.50 to S$2.70 &ndash 10.2 per cent above its latest S$2.45 closing price on Thursday &ndash given its &ldquo steady performance&rdquo for its second half ended September. DBS also maintained its &ldquo buy&rdquo call for the trust and kept its target price unchanged at S$2.75.
Pointing to FCT&rsquo s &ldquo stable&rdquo H2 results, RHB analyst Vijay Natarajan said: &ldquo (The) key focus for FY2026 will be on unlocking value via planned asset enhancement initiatives (AEI), with FCT continuing to benefit from declining interest rates. Healthy rent reversions are set to continue, backed by higher tenant sales.&rdquo
Natarajan added that FCT remains one of its top picks for its high-quality, pure-play Singapore suburban mall exposure.
Similarly, DBS highlighted that FCT has been a &ldquo sector darling for the past few years&rdquo , with its catalysts remaining resilient and poised to deliver earnings growth for FY2026.
However, with the upcoming Rapid Transit System (RTS) posing uncertainties for northern-bound malls in Singapore, DBS noted that the market could take a &ldquo more measured approach&rdquo while weighing the RTS&rsquo eventual impact on FCT.
&ldquo We do not envision a drop in earnings, but market sentiment may see a rotation out as investors adopt a wait-and-see approach to fully assess the RTS&rsquo impact on northern malls and FCT&rsquo s portfolio,&rdquo the bank said.
Asset enhancements, lower interest rates as tailwinds
DBS said overall portfolio valuations for FCT have been &ldquo broadly stable&rdquo , with a 1.2 per cent increase led by the uplift at Hougang Mall, as valuers priced in the ongoing AEI spending.
RHB noted that Hougang Mall&rsquo s AEI is on track for completion by September 2026 the works will increase its net lettable area by around 11,000 square feet (sq ft).
&ldquo More than 80 per cent of the additional space has already received pre-commitments, with FCT on track to achieve around 7 per cent return on investment on its estimated S$51 million capital expenditure,&rdquo RHB&rsquo s Natarajan said.
This will likely be followed by an AEI at Nex mall. The works there are in advanced stages of planning, and could increase gross floor area by around 60,000 sq ft. Northpoint City, on the other hand, is expected to benefit from &ldquo better integration and value unlocking&rdquo , following FCT&rsquo s acquisition of its South Wing in May, Natarajan said.
Moreover, lower borrowing costs could provide tailwinds for FCT, he added.
RHB noted that interest costs are down 60 basis points year to date at 3.5 per cent in Q4 FY2025, with management guiding that interest costs will stand at 3.3 to 3.4 per cent in FY2026.
Minimal impact from Cathay exit
The income decline from Cathay Cineplexes&rsquo exit from FCT&rsquo s portfolio was largely offset by better performance across other malls, Natarajan said.
He noted that portfolio occupancy dipped 1.8 percentage points as a result of the distressed cinema chain shuttering operations at Causeway Point and Century Square, where it previously was an anchor tenant.
Likewise, DBS believes that operations will continue to be &ldquo rosy&rdquo for the trust despite the headline drop in occupancy, amid healthy tenant trading.
Both banks observed that tenant sales have risen.
DBS said: &ldquo Notably, tenant sales this quarter saw an uplift compared to the first nine months of FY2025 from the launch of SG60 vouchers, which we believe will help sustain consumer spending momentum at FCT&rsquo s malls into the next financial year.&rdquo
Moreover, a potential upside could come from the successful repositioning of the space formerly used by Cathay Cineplexes, RHB said. It noted that FCT is currently exploring replacement tenants.
Frasers Centrepoint Trust preferential offering 24.8% oversubscribed
Its manager raises total of S$421.3 million from the offering and a private placement that closed on Mar 26
[SINGAPORE] The manager of Frasers Centrepoint Trust : J69U 0% (FCT) on Monday (Apr 21) said that its preferential offering was 24.8 per cent oversubscribed.
The manager received applications for 122,584,803 preferential offering units, against the 98,185,673 units offered. The offering was launched earlier this month at S$2.05 per unit. The issue price represented a 7.4 per cent discount to the volume-weighted average price of S$2.2136.
The offering was made on the basis of 54 units for every 1,000 existing units held as at 5pm on Apr 3, to raise gross proceeds of about S$201.3 million.
Together with an upsized private placement that closed on Mar 26, FCT has raised a total of S$421.3 million. At the enlarged size, the private placement was about four times covered, with 105.3 new units sold at S$2.09 apiece.
FCT will use the net proceeds of the fundraising to repay certain existing debts, and to help with the recent Northpoint City acquisition.
On Mar 25, FCT entered into unit purchase agreements with FCL Amber and Bright Bloom Capital to buy the South Wing of Northpoint City for S$1.17 billion. The purchase was executed by acquiring all the units in North Gem Trust, a private trust that holds the interests in the South Wing of Northpoint City.
These units are expected to commence trading on the Singapore Exchange at 9am on Apr 25.
Frasers Centrepoint Trust launches preferential offering at S$2.05 apiece
It will raise gross proceeds of about S$421.3 million
[SINGAPORE] The manager of Frasers Centrepoint Trust on Tuesday (Apr 8) announced the launch of a preferential offering at S$2.05 per unit.
The issue price represents a 7.4 per cent discount to the volume-weighted average price of S$2.2136 apiece.
This preferential offering will be made on the basis of 54 units for every 1,000 existing units held as at 5 pm on Apr 3, to raise gross proceeds of about S$421.3 million.
It is open for subscription on Tuesday at 9 am and its closing date is on Apr 16.
At present, these units on the Singapore Exchange are expected to commence trading on Apr 25 at 9 am.
On Mar 26, FCT closed a private placement of about 105.3 new units to raise gross proceeds of around S$220 million.
The holders of private placement units are not eligible to participate in the preferential offering, and will not be entitled to cumulative distribution (in relation to existing units in FCT, and their intended distribution for the period from Oct 1, 2024, to Mar 31, 2025, and the advanced distribution for the period from Apr 1 to Apr 3).
The net proceeds of the equity fundraising is used to repay certain existing debts, and help with the recent Northpoint City acquisition.
Earlier on Mar 25, FCT entered into unit purchase agreements with FCL Amber and Bright Bloom Capital to acquire the South Wing of Northpoint City for S$1.17 billion. The purchase was executed by acquiring all the units in North Gem Trust &ndash a private trust that holds the interests in the South Wing of Northpoint City.
With the preferential offering in place, the acquisition price is to be funded by new debt financing with an all-in interest rate assumed at 3.3 per cent.
The acquisition fee of around S$11.3 million will be paid in the form of around 5.4 million acquisition fee units at an issue price of S$2.09 per acquisition fee unit.
Assuming the acquisition had been completed on Oct 1, 2023, the distribution per unit (DPU) would have been S$0.12264 with the issuance of perpetual securities, and S$0.12227 without the issuance of perpetual securities, up from FY2024&rsquo s DPU of S$0.12042.
Frasers Centrepoint Trust to buy rest of Northpoint City for S$1.17 billion
Manager says it has entered into unit purchase agreements with FCL Amber and Bright Bloom Capital to acquire mall&rsquo s South Wing
[SINGAPORE] The manager of Frasers Centrepoint Trust : J69U 0% (FCT) on Tuesday (Mar 25) announced that it has entered into unit purchase agreements with FCL Amber and Bright Bloom Capital to acquire the South Wing of Northpoint City for S$1.17 billion.
This will be done through the acquisition of all the units in North Gem Trust (NG Trust), which is a private trust that holds the interests in the South Wing of Northpoint City.
FCL Amber and Bright Bloom each hold 50 per cent of the total number of issued units in NG Trust.
FCL Amber is a wholly owned subsidiary of Frasers Property, while Bright Bloom is a wholly owned subsidiary of TCC Prosperity. TCC Prosperity is a company wholly owned by Thai billionaire Charoen Sirivadhanabhakdi and the estate of the late Wanna Sirivadhanabhakdi in equal shares.
Following the acquisition, FCT will have full ownership of Northpoint City, said Richard Ng, chief executive of the manager of the trust.
&ldquo With full control, FCT will be able to implement holistic asset enhancement initiatives and tenant mix strategies to unlock further value across both wings,&rdquo he noted. FCT acquired the North Wing in 2006.
He added: &ldquo The acquisition consolidates FCT&rsquo s position as Singapore&rsquo s leading prime suburban retail space owner and enables FCT to deliver regular and stable distributions to its unitholders.&rdquo
The acquisition cost of S$1.17 billion comprises S$375.2 million for the acquisition price, about S$785 million of bank loans owed by NG Trust, about S$11.3 million in acquisition fees payable to the manager, as well as other acquisition-related fees and expenses of about S$1.4 million. The manager intends to finance the acquisition by utilising the net proceeds raised from the issuance of new equity via an equity fund raising launched on Tuesday.
This includes a private placement offering to raise gross proceeds of no less than about S$200 million, along with a preferential offering. The manager also intends to raise proceeds through debt financing and potentially issuing subordinated perpetual securities of no more than about S$200 million.
The provisional allotment under the preferential offering, comprising about S$200 million, has been granted to the wholly owned subsidiaries of sponsor Frasers Property &ndash Frasers Centrepoint Asset Management and Frasers Property Retail Trust Holdings &ndash which will collectively hold about 39.77 per cent of total units in issue.
The proposed acquisition is subject to approval by unitholders of FCT at an extraordinary general meeting to be convened by the trust at a later date to be determined by the manager.
Consisting of both the North and South wings, Northpoint City is part of an integrated development also comprising the condominium North Park Residences, which is situated above the retail podium.
FCT noted that new homes, especially in the north, north-east and east, are expected to expand the shopper catchment population of FCT&rsquo s malls in those regions and boost higher shopper traffic, while higher household incomes should support retail spending growth.
In its latest earnings release for its second half ended September 2024, FCT posted a distribution per unit of S$0.0602, unchanged from the year prior. The trust posted a committed occupancy of 99.5 per cent for its retail portfolio in its first quarter of its financial year ending Sep 30, 2025.
FCT manager' s CFO resigns
Tan Loo Ming Audrey, the chief financial officer of Frasers Centrepoint Asset Management (FCAM), the manager of Frasers Centrepoint Trust J69U 0.00% (FCT), has resigned.
&ldquo Ms Tan has been a valued member of the FCAM leadership team and the board of FCAM thanks her for her service and contribution to FCT,&rdquo announced the REIT manager on June 7.
Tan&rsquo s last day will be on Aug 9.
Her successor is being selected and an announcement will be made &ldquo in due course&rdquo .
Tan was appointed as CFO of the REIT manager on July 24, 2021. She holds 61,900 units in the REIT and 101,500 awards under the FCAM restricted unit plan. Under the plan, up to 124,100 units in FCT may be vested or delivered.
Very few reits do that now.
Sg reits grow by increasing debt and share capital, then buy yield accretive properties.
No old fashion way.
It's macdonalds way.
Fast food way.
Alignment ( Date: 27-Apr-2024 18:02) Posted:
|
No, from cashflow. Perhaps that will temporarily depress DPU but good use of cashflow would by definition bring supersize returns.
As a retail REIT the old fashioned way of deploying such cashflow would be things like small scale AEI, building refresh, carefully targeted marketing campaigns etc. Not buy new properties.
As a retail REIT the old fashioned way of deploying such cashflow would be things like small scale AEI, building refresh, carefully targeted marketing campaigns etc. Not buy new properties.
Using debt?
Alignment ( Date: 27-Apr-2024 17:29) Posted:
|
FCT needs to stop doing placements at a discount and work with what it has. Grow DPU the old fashioned way.
Frasers Centrepoint Trust posts 1.8% drop in H1 DPU to S$0.06022
Its gross revenue and net property income have declined
FRASERS Centrepoint Trust : J69U -0.46% (FCT) on Thursday (Apr 25) posted a 1.8 per cent drop in distribution per unit (DPU) for the first half ended Mar 31 to S$0.06022, from S$0.0613 in the same period a year earlier.
The fall in DPU came as FCT recorded declines in both its gross revenue and net property income (NPI), following lower contributions from Changi City Point &ndash divested in October 2023 &ndash and from Tampines 1, which is undergoing an asset enhancement initiative (AEI), the manager said.
Gross revenue for the half-year period was down 7.2 per cent to S$172.2 million from S$185.7 million, while NPI fell 8.4 per cent to S$124.6 million from S$136 million.
Excluding the effects from the Changi City Point divestment and the AEI works at Tampines 1, gross revenue would have grown 2.9 per cent, while NPI would have risen 2.1 per cent.
The DPU included an advanced distribution of S$0.0425 for the period between Oct 1, 2023, and Feb 4, 2024, which was paid on Apr 2, 2024. The balance distribution of S$0.01772 will be paid on May 30, 2024, FCT said in its interim financial statement.
Distributions to unitholders for the period inched up 0.2 per cent on the year to S$104.9 million, from S$104.7 million.
FCT released S$1.1 million of tax-exempt income available for distribution to unitholders in H1 2024, which was previously retained in H2 2023. In H1 2023, it released S$1.7 million in income available for distribution, which was retained in H1 2022.
The real estate investment trust&rsquo s gearing stood at 38.5 per cent as at Mar 31, 2024, up slightly from 37.2 per cent at Dec 31, 2023. There are no borrowings maturing for the remaining period of FY2024, the manager said.
Its committed occupancy remained unchanged at 99.9 per cent from the previous quarter. FCT also recorded better rental reversions of 7.5 per cent on an average versus average basis, excluding Tampines 1 due to the AEI works.
The manager expects the works, which are progressing on schedule, to conclude by September 2024. More than 99 per cent of the AEI spaces have already been committed, with new tenants such as Lenskart Studio, Love, Bonito, Mister Donut, and SaSa.
&ldquo We are also concurrently reviewing AEI plans for other malls in our portfolio and will announce them in due course,&rdquo said Richard Ng, chief executive of FCT&rsquo s manager.
FCT falls as much as 3.9% on proposed placement, Nex stake acquisition
UNITS of Frasers Centrepoint Trust : J69U -2.63% (FCT) shed as much as 3.9 per cent during the morning trading session on Friday (Jan 26), even as investors digested a proposed private placement to boost FCT&rsquo s interest in retail mall Nex.
The real estate investment trust (Reit) on Thursday proposed a private placement of 91.7 million units to raise S$200 million. Gross proceeds will be used to fund an acquisition of Frasers Property&rsquo s : TQ5 +1.06% 24.5 per cent stake in the mall.
FCT&rsquo s units dropped as much as 3.9 per cent to a low of S$2.19 as at 9.15 am after the Reit lifted its trading halt called on Thursday. The counter later recovered slightly to S$2.23 as at 1.53 pm, with 12.7 million units changing hands.
In contrast, Frasers Property&rsquo s shares reached an intra-day high of S$0.96 as at 10.26 am following the news, rising as much as 2.1 per cent. By 1.53 pm, the counter was trading 1.1 per cent or S$0.01 higher at S$0.95.
The private placement closed at the issue price of S$2.18 per new unit after book building and was 2.5 times covered, FCT&rsquo s manager announced on Friday.
The proposed acquisition will be subject to unitholder approval at an extraordinary meeting to be convened. Upon completion, FCT will hold an effective 50 per cent interest in Nex.
The deal was highlighted as a possible share price catalyst for FCT by UOB Kay Hian, which maintained its &ldquo buy&rdquo call and target price of S$2.70 on FCT in a report on Wednesday.
&ldquo We like this acquisition, as it provides earnings stability, diversification, and economies of scale in the longer run,&rdquo said RHB analyst Vijay Natarajan in a separate report on Thursday.
He noted that Nex could have healthy positive rent reversions as it is almost fully occupied with possible upside potential from the reconfiguration of tenant space, asset enhancements and low occupancy costs.
UOBKH said there is room for FCT to optimise Nex&rsquo s performance by rightsizing its tenant mix.
&ldquo The proportion of retail space allocated to anchors and mini anchors is much larger compared to most other suburban malls at below 40 per cent,&rdquo said UOBKH analyst Jonathan Koh.
Furthermore, the proposed deal is mildly accretive on a distribution per unit (DPU) basis and could also have huge upside potential if tax transparency status is achieved, RHB said.
The manager expects the acquisition to result in a DPU accretion of 0.4 per cent post-completion. After factoring the divestment of Changi City Point and Hektar Reit, DPU accretion is expected to be 1.5 per cent.
Following news of the proposed acquisition, RHB has increased its FY2024-26 DPU projections for FCT by 1 to 2 per cent after accounting for the possible accretion.
Management also anticipates gearing to fall to 37.8 per cent &ndash a level RHB deems comfortable &ndash from 39.3 per cent.
It has maintained its &ldquo neutral&rdquo call on FCT but raised its target price to S$2.35 from S$2.30.
&ldquo Post-acquisition, FCT will become Singapore&rsquo s largest prime suburban retail mall owner by net lettable area,&rdquo Natarajan said.
Seems like a pretty dead thread here lol
DBS - Ideas of the Day
Trending Sectors - Reopening beneficiaries
Pandemic to endemic
- Singapore is preparing a roadmap for COVID-19 being endemic as more people are vaccinated in the weeks/months ahead
- Next milestone is for two-thirds of the population to be vaccinated by National Day
- In time, COVID-19 will be treated as any other endemic diseases such as dengue and HFMD
- Focus will then turn to the number of hospitalisations compared to number of infections, large gatherings can be allowed, businesses needed not fear disruptions
- Eventually, no-quarantine international travel will be possible using vaccine certificates to countries that have also brought the disease to an endemic norm
- Positive for domestic reopening names: (1) public transportation - ComfortDelGro, (2) retail REITs - Frasers Commercial Trust, Lendlease Global, Mapletree Commercial Trust, (3) office -Keppel REIT.
Trending Sectors - Reopening beneficiaries
Pandemic to endemic
- Singapore is preparing a roadmap for COVID-19 being endemic as more people are vaccinated in the weeks/months ahead
- Next milestone is for two-thirds of the population to be vaccinated by National Day
- In time, COVID-19 will be treated as any other endemic diseases such as dengue and HFMD
- Focus will then turn to the number of hospitalisations compared to number of infections, large gatherings can be allowed, businesses needed not fear disruptions
- Eventually, no-quarantine international travel will be possible using vaccine certificates to countries that have also brought the disease to an endemic norm
- Positive for domestic reopening names: (1) public transportation - ComfortDelGro, (2) retail REITs - Frasers Commercial Trust, Lendlease Global, Mapletree Commercial Trust, (3) office -Keppel REIT.
In this climate better don't invest based on dpu. For anytime the company can just back track citing bad economy
1.42?
OK done and dusted. Happy as I hold both Fraser REITS.
Did FCOT merger get approved?
Bros,... I thought I' d put this here too, since we are merging in future,... the following is a possble scenario of merging.
As at end-FY19, ending on September 30th., 2019, based on audited results, the following are the nav per unit :-
1) FLT = $0.95 per unit.
2) FCT = $1.61 per unit.
Therefore, the GER (Gross Exchange Ratio) = 0.95/1.61 = 0.5900.
The final closing price of FCT prior to ' Halt' yesterday morning at 8.02am was : $1.67.
As heavy consideration to holders of FCT, I will assume a TEMP (Theoretical Ex-Merging Price) of $1.70 as issue price for the conbined REIT on Listing Day in the future.
To work out the TEMNP (Theoretical Ex-Merging NAV Price) for FLT, we compute the following : 0.5900 x $1.70 = $1.003 ONLY, this is sad,... for I currently hold FLT at 99c.
With the above scheme-of-arrangement, and calling the combined or post-merging units as ' Frasers Logistics & Commercial Trust (FLCT)' :-
1) For FCT Holders, nothing needs to be done except for just converting over their units from FCT to FLCT at a ratio 1:1.
2) For FLT Holders, every unit of FLT will need to be converted to ONLY 0.59 unit of FLCT at a ratio of 1:0.59.
In other words, every one of my FLT unit will get 0.59 unit of FLCT, based on my assumed framework in the above.
The $1.003 TEMNP may be satisfied by just FLCT units, which will follow the conversion equation from 2) above, or this $1.003 may be satisfied by a combination of units of FLCT and cash reimbursement.
I personally hoped the managers of FCT and FLT have an alternative framework, because as a holder of FLT (AND NO FCT Units at all), I am losing heavily here in terms of dpu amount to be collected later and in terms of capital gain compared to the last close price of $1.24 for FLT !
As at end-FY19, ending on September 30th., 2019, based on audited results, the following are the nav per unit :-
1) FLT = $0.95 per unit.
2) FCT = $1.61 per unit.
Therefore, the GER (Gross Exchange Ratio) = 0.95/1.61 = 0.5900.
The final closing price of FCT prior to ' Halt' yesterday morning at 8.02am was : $1.67.
As heavy consideration to holders of FCT, I will assume a TEMP (Theoretical Ex-Merging Price) of $1.70 as issue price for the conbined REIT on Listing Day in the future.
To work out the TEMNP (Theoretical Ex-Merging NAV Price) for FLT, we compute the following : 0.5900 x $1.70 = $1.003 ONLY, this is sad,... for I currently hold FLT at 99c.
With the above scheme-of-arrangement, and calling the combined or post-merging units as ' Frasers Logistics & Commercial Trust (FLCT)' :-
1) For FCT Holders, nothing needs to be done except for just converting over their units from FCT to FLCT at a ratio 1:1.
2) For FLT Holders, every unit of FLT will need to be converted to ONLY 0.59 unit of FLCT at a ratio of 1:0.59.
In other words, every one of my FLT unit will get 0.59 unit of FLCT, based on my assumed framework in the above.
The $1.003 TEMNP may be satisfied by just FLCT units, which will follow the conversion equation from 2) above, or this $1.003 may be satisfied by a combination of units of FLCT and cash reimbursement.
I personally hoped the managers of FCT and FLT have an alternative framework, because as a holder of FLT (AND NO FCT Units at all), I am losing heavily here in terms of dpu amount to be collected later and in terms of capital gain compared to the last close price of $1.24 for FLT !
Frasers Commercial Trust will pay out a distribution per unit (DPU) of 2.4 Singapore cents for the third quarter, flat on the year before, the manager said on Monday. Net property income dipped by 3 per cent year on year to S$19.8 million for the three months to June 30, amid higher property tax costs for Alexandra Technopark. The real estate investment trust?s (Reits) earnings also took a hit from the amortisation of lease incentives for the 50 per cent-owned Central Park in Perth and 357, Collins Street in Melbourne. Gross revenue fell by 7 per cent to S$30.2 million, no thanks to lower occupancy at Alexandra Technopark in the quarter, a softer Australian dollar, and the sale of 55, Market Street in 2018. (BT)