Frasers Centrepoint Trust’s Q1 FY2022/23 Business Update

Frasers Centrepoint Trust’s Q1 FY2022/23 Business Update

Frasers Centrepoint Trust’s Q1 FY2022/23 Business Update

This post was originally posted here. The writer, Jun Yuan Lim is a veteran community member and blogger on InvestingNote, with a username known as @ljunyuan and has close to 2100 followers.

Frasers Centrepoint Trust (SGX:J69U) is a pure-play Singapore REIT, where its portfolio comprises 9 retail malls (all located in heartland locations across the country), along with an office property.

Following the conclusion of REIT’s annual general meeting (AGM) last Tuesday (17 January) for the financial year ended 30 September 2022 (i.e. FY2021/22), it have made available its business update for the first quarter of the financial year 2022/23 ended 31 December 2022 shortly after market hours this evening (26 January 2023.)

As the REIT have switched to half-yearly reporting of its financial statements, for the current quarter under review, it only made available its portfolio occupancy and debt profile – both of which I will be looking at in this post, along with my thoughts.

Let’s begin:

Portfolio Occupancy Profile (Q4 FY2021/22 vs. Q1 FY2022/23)

When it comes to reviewing a REIT’s portfolio occupancy, I always review the statistics reported for the quarter under review against that reported in the previous quarter 3 months ago.

Hence, in this section, you’ll find my review of Frasers Centrepoint Trust’s portfolio occupancy profile for Q1 FY2022/23 ended 31 December 2022, compared against the previous quarter ended 30 September 2022 (i.e. Q4 FY2021/22) to find out if it has continued to remain strong:

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Will SATS Pay a Dividend Ever Again?

Will SATS Pay a Dividend Ever Again?

SATS will go ahead to buy Worldwide Flight Services – a global cargo handling business with presence across 18 countries in five continents.

This post was originally posted here. The writer, Willie Keng is a veteran community member and blogger on InvestingNote, with a username known as @Willie and has close to 130 followers.

At first glance, I thought this acquisition made much sense — SATS/WFS deal would push the combined companies to become a global cargo handling player.

In fact, SATS would eventually diversify revenues across Asia, Europe, the Middle East and Africa, and North America.

key trade routes and network coverage of the SATS Group and WFS Group

Source: SATS/WFS Prospectus 3 Jan 2023

Yet SATS shares have fallen more than 30%.

And even after the deal was approved last week, shares were still stuck in the bargain bin.

If the SATS/WFS deal had so much growth potential, why is the market still undervaluing its SATS shares?

And more importantly, will SATS still pay a dividend ever again?

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ComfortDelGro sinks to 14-year low! Will it go lower? (19 Jan 2023)

ComfortDelGro sinks to 14-year low! Will it go lower? (19 Jan 2023)

On 11 Jan, Comfort (CD) closed at $1.21, the lowest close since 31 Oct 2008. The next day, to the horror of CD’s shareholders, it broke $1.21 with volume expansion and closed at $1.18. At the time of this write-up, CD closed today at $1.14, the lowest close last seen 29 Oct 2008.

This post was originally posted here. The writer, Ernest Lim is a veteran community member and blogger on InvestingNote, with a username known as @el15 and has close to 550 followers.

‌Will CD fall more? Or will this be a comfortable trade at current level? Let’s read on for more.‌

Possible reasons to be bullish

A) Still a recovery play

CD with its operations in Australia, China, Singapore, UK etc. should gradually benefit as economies re-open. China’s abrupt easing of its Covid measures will likely facilitate more commuting and travelling in China and outside China.

‌Based on Bloomberg, the consensus from analysts is still projecting CD to post a year-on year (“y-o-y”) net profit growth of 30% in FY22F; 16% in FY23F; 7% in FY24F. Thus, suffice to say that CD is still a recovery play and is likely to post year on year profit growth. Much cannot be said for some companies as they may report a y-o-y drop in net profit in FY23F especially if their FY22F is an exceptional year.‌

B) Valuations are incredibly low; 2.0x standard deviations below its average 10Y P/BV

Based on Bloomberg, CD trades at 2.0x standard deviations below its average 10Y P/BV of 1.9x. With net profit expected to rise in FY22F, FY23F and FY24F (see point A above), it does not seem justifiable to trade at such depressed valuations.

C) Net cash $647m; easily can finance M&A & 5-6% dividend yields

Based on some of the analyst reports which I have read, CD’s balance sheet has emerged stronger after the pandemic. CD has net cash amounting to $647m in 3QFY22 vs $520m in 4QFY21. In other words, 26% of market cap is backed by net cash. Such strong balance sheet should be able to support its dividends and any acquisitions. Furthermore, generally speaking, in a rising interest rate environment, having net cash is better than being in debt.

D) 14-year low price since 29 Oct 2008

During the height of the pandemic, CD traded to a low of around $1.30 – 1.31. At that time, the economy and human traffic come to an almost standstill and plagued with uncertainties on how the pandemic will pan out. It is difficult to see how its operations can be worse now compared to the pandemic. Granted that analysts have cut their profit estimates for CD, the consensus net profit still expects CD to post a 30% rise in FY22F; 16% in FY23F; 8% in FY24F.

E) Total potential upside is around 43% if the consensus is right

Based on Bloomberg, average analyst target price is $1.56; FY23F estimated div yield is at 6.0%. If the consensus is right, CD presents a total potential return of around 43%.

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Exclusive: CNY 12生肖2023运势 Free Report & Promo!

Exclusive: CNY 12生肖2023运势 Free Report & Promo!

It’s that time of the year again where we welcome Chinese New Year, and 2023 is the Year of The Rabbit!  As a token of appreciation, we are excited to share with you a very special Chinese Zodiac report (12生肖2023运势) which tells you what to expect for each zodiac signs. 

This report is specially prepared in collaboration with renowned Feng Shui consultant, Joey Yap. 

We hope with this report, you’d be able to get lucky, get healthier and make better investment decisions! Simply download the report in the attachment below.

Well, at ShareInvestor, we have something for you as well. Get lucky by signing up for SI Webpro or Station and stand a chance to win one of our 12 lucky Ang Baos worth S$88 each!

Subscribe for the promo here: https://bit.ly/2023cnypromo

Download the free report here: https://www.investingnote.com/posts/2572567

Remember to share this with your loved ones to share the prosperity together! 😄

We wish you a Happy, Wealthy & Healthy Chinese New Year! 

HUAT AH!

Your friends at InvestingNote

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Frasers Centrepoint Trust: AGM for FY2021/22 – My Summary

Frasers Centrepoint Trust: AGM for FY2021/22 – My Summary

Following the conclusion of the financial year on 30 September 2022 (i.e. FY2021/22), suburban retail mall REIT in Frasers Centrepoint Trust (SGX:J69U) held its annual general meeting (AGM) earlier this morning, which I attended as a unitholder to receive the latest developments.

This post was originally posted here. The writer, Jun Yuan Lim is a veteran community member and blogger on InvestingNote, with a username known as @ljunyuan and has close to 2100 followers.

Frasers Centrepoint Trust’s AGM for FY2021/22

Apart from attending the meeting proper, I also had the opportunity to meet up with some of the community members in InvestingNote in person, and engaging in some really meaningful discussions with some of them thereafter. Among them include the team from “The Joyful Investors“ (@The_Joyful_Investors), where I really enjoyed the videos they have put up to share about the nuts and bolts of fundamental as well as technical analysis, and more importantly, their ability to explain them in such a newbie-friendly manner. It was a real privilege meeting up with them for some short discussions and a wefie together:

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AIMS APAC REIT: Is Its 7.6% Dividend Safe From Rising Rates?

AIMS APAC REIT: Is Its 7.6% Dividend Safe From Rising Rates?

I don’t often look at this — have you heard of AIMS APAC REIT? I wrote it here last time.

This post was originally posted here. The writer, Willie Keng is a veteran community member and blogger on InvestingNote, with a username known as @Willie and has close to 130 followers.

This is a straightforward, Singapore industrial REIT – owns warehouses, storages and light manufacturing facilities.

The kind of properties where engineering, retail and food companies would lease spaces from.

What struck me, is not that it’s different from the bigger industrial landlords like Ascendas REIT or Mapletree Industrial Trust (both morphed into diversified properties including trendy business parks and data centre).

What struck me is, AIMS APAC REIT’s dividend is trading at a much higher yield than its blue-chip peers.

I’ve come to believe Singapore industrial REITs should trade at a higher yield.

That’s because these REITs own assets that sit on shorter, 30 years land leases.

Think about this.

After a land lease expires, AIM APAC REIT needs to raise fresh capital – usually from banks – to replace their existing assets and the land its properties sit on.

A REIT pays most of their profits as dividends. And a REIT can only borrow up to a fixed amount of debt.

So the next logical step is to raise more money from unitholders – through rights issue.

And part of what you collect as dividends from industrial REITS over the years, will be reinvested back into AIMS APAC REIT.

As it replaces properties whose land leases expire over time.

That’s why you need a much higher dividend yield to compensate for a rights issue.

But I’m not talking about short land leases today.

The thing is, last year, AIMS APAC REIT paid 9.41 cents of dividends, which makes its current yield of 7.6% pretty attractive.

Now, I enjoy a good dividend payout. But I also ask myself this – is its high yield safe from high interest rates?

Well, let’s find out then.

AIMS APAC REIT — A “Pure-Play” Industrial Singapore REIT

AIMS APAC REIT was listed on the SGX since 2007 – making it one of the longest public-listed REITs.

Today, it has 29 properties: 26 in Singapore, three in Australia – all worth S$2.2 billion.

It has 202 tenants, split across various sectors. After it bought over Woolsworth HQ in Australia, this makes Woolsworth its biggest tenant.

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COSCO Shipping Holdings Co., Ltd – What You Need to Know

COSCO Shipping Holdings Co., Ltd – What You Need to Know

Listed on the Stock Exchange of Hong Kong since 30 June 2005 (under the ticker symbol SEHK:1919), and subsequently on the Shanghai Stock Exchange since 26 June 2007 (under the ticker symbol SHA:601919), COSCO Shipping Holdings Co., Ltd ($COSCO SHIP HOLD(1919.HK)) is in the business of providing container shipping, managing, and operating container terminals, along with other terminal-related businesses. 

This post was originally posted here. The writer, Jun Yuan Lim is a veteran community member and blogger on InvestingNote, with a username known as @ljunyuan and has close to 2100 followers.

Photo by Anja Bauermann on Unsplash

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Manulife US REIT 13.8% Dividends: The Good, The Bad & The Ugly

Manulife US REIT 13.8% Dividends: The Good, The Bad & The Ugly

It’s no secret Manulife US REIT is in some sort of danger.

This post was originally posted here. The writer, Willie Keng is a veteran community member and blogger on InvestingNote, with a username known as @Willie and has close to 130 followers.

Two weeks ago, it announced its gearing ratio would hit 49%, which is alarmingly close to MAS gearing limit.

Now, a high gearing ratio helps boost a REIT’s financial leverage – and also boost its returns.

But I find this also raises the risk of distress if gearing ratio gets too high.

The thing is, what caused this surprising spike in Manulife US REIT’s gearing, is its entire property portfolio value has fallen by 10.9% to US$1.9 billion.

Note: Gearing ratio = total debt dividend by total assets.

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Are We Returning to the 2000-2010 Investment Climate? Everything do better than the S&P 500?

Are We Returning to the 2000-2010 Investment Climate? Everything do better than the S&P 500?

My formative investing years started in the 2003 bull market.

This post was originally posted here. The writer, Kyith Ng is a veteran community member and blogger on InvestingNote, with a username known as @kyith and has close to 1300 followers.

Investing from 2000 to 2010 was a fascinating period. There were many themes in that decade. There wasn’t a dominant theme. Real estate would work, and so would the BRICs (not sure how many of you remember that). If you are not invested in emerging markets, there is something wrong with you.

Strangely, the actions in the past two months reminded me of that period. This weekend, most of the financial content I consume seems to also remind me of that.

The chart below shows us the selected performance of some indexes during the past two months:

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Strategic merger between ShareInvestor and InvestingNote

Strategic merger between ShareInvestor and InvestingNote

Hi everyone, we are happy to announce the strategic merger between ShareInvestor and InvestingNote on 4 January 2023!

ShareInvestor is Singapore’s largest independent platform for investor relations, market data tools and investor education, while InvestingNote, is a fast-growing and profitable community-driven platform serving young retail investors.

With the merger our combined subscriber database now spans Gen X, Millennials and Gen Z retail investors.

We are now an even more attractive one-stop platform for business partnerships with advertisers, sponsors, key opinion leaders & financial institutions.

Our combined talents and technologies will generate innovative and exciting new products.

Our merged business footprint is set to expand beyond its current markets in Singapore, Malaysia, Thailand & Indonesia.

With the merger valuing the Combined Group at over S$30M, we will set our sights on being publicly listed within the next few years.

View full press release here: http://bit.ly/3X1KnZH

More importantly, what does it mean for you as our valued community member?

Basically, it will still be business-as-usual for all community members. 

With more resources and technologies, we will strive to serve you better.

Happy New Year. HUAT AH!


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