Frasers Property (formerly: Frasers Cpt (FCL))

[greengiraffe]

http://cms3.todayir.com.sg/html/client/f...082_en.pdf

Frasers Centrepoint Limited ("FCL" or the "Company") announces the
resignation of Bob Johnston from Frasers Australand Pty Ltd ("Frasers
Australand"), a whollyowned
subsidiary of FCL and the parent entity of
Australand Property Group. The Frasers Australand Board has
acknowledged and accepted the resignation. The formal notice period
is six months, subject to any variations that may be mutually agreed by
the parties.
Rod Fehring, currently Executive General Manager, Residential, has
been appointed by the Frasers Australand Board to succeed Mr.
Johnston as CEO. The Frasers Australand Board will work closely with
Mr. Johnston and Mr. Fehring towards a smooth leadership transition.
Mr Lim Ee Seng, Group CEO of FCL and Director of Frasers Australand
Board, said, "We would like to thank Bob for his contributions to FCL s
Australia business, and in particular, his instrumental role in managing
the integration of Australand with Frasers Centrepoint. We wish Bob
every success in the future."
"Frasers Australand is wellpositioned
for growth, with the residential
business benefiting from Australia's residential upcycle
and the
commercial and industrial business enjoying good traction with
customers and tenants. Rod has been a senior member of the Frasers
Australand leadership team for over half a decade. His deep industry
expertise and demonstrated capabilities have earned him a solid
reputation in the Australian real estate market. We are confident that
with Rod at the helm, the Frasers Australand team will maintain its
momentum towards realising the business's significant growth
potential," Mr Lim concluded.

[greengiraffe]

What if Bob return with GPT to knock on FCL's door for ALZ's office portfolio?

GPT appoints Bob Johnston of Frasers Australand as CEO
THE AUSTRALIAN JULY 22, 2015 12:00AM

Turi Condon

Property Editor
Sydney
Greg Brown

Property Reporter
Sydney

Australia’s oldest listed property trust, GPT Group, has appointed veteran property executive and Frasers Australand managing ­director Bob Johnston as its new chief executive, a surprise move ending months of speculation that an internal candidate would likely take the helm.

Fund managers said the choice signalled a greater emphasis on development and possibly mergers and acquisitions for the $7.9 billion group, noting there had been investor pressure for the top job to go to an external candidate.

GPT chairman Rob Ferguson said the board had mulled the choice of a new chief executive for a long time, saying the four internal candidates “had all done a lot of work, a lot thinking about the business, and ideas about the business”.

“At the end of the day Bob has experience in a lot of ­different geographies, in the whole gambit of funds management, construction, project ­management, development, plus he’s been a successful CEO for Australand, it gave him a margin in front of the internals, but all the internals came up looking capable of being CEOs.”

Mr Johnston, who managed Australand through its $2.6bn takeover by Singapore-listed Frasers Centrepoint in 2014 and is a former Lend Lease executive, replaces Michael Cameron who moves to Brisbane later this year to head Suncorp Group.

GPT attempted a failed play for Australand’s $3bn office and industrial portfolio in 2013 giving the board exposure to Mr Johnston, while former Australand head Brendan Crotty is also on the GPT board.

Mr Johnston will earn a base salary of $1.4 million, slightly below Mr Cameron’s $1.5m fixed pay. In addition, there a $500,000 performance rights sign on grant and up to $829,000 of performance rights.

Mr Cameron departs in October after six years heading GPT while the incoming CEO may not be available until January.

Mr Johnston would talk to the Frasers board in coming weeks and a decision on managing the potential CEO gap would be made after that, Mr ­Ferguson said. “We will cross that bridge when we come to it,” he said. Mr Ferguson flagged little change in strategy saying it was “business as usual”. However, he noted GPT had a large development pipeline with Mr Johnston having particular skills in that area.

Residential development is an area of expertise for Mr Johnston, but Mr Ferguson signalled this was only likely to be undertaken as part of mixed-use projects.

Mr Johnston said the group’s strategy would be reviewed with the aim of capitalising on the ­company’s strong position. “As part of this process I will be meeting with each of the major investors to ensure that their views are understood and considered,” Mr Johnston said yesterday.

When Mr Cameron resigned in April, Mr Ferguson stressed the strength of the group’s internal candidates, and analysts yesterday speculated whether some of those executives may now reassess their roles.

GPT chief investment officer Carmel Hourigan had been ­considered a frontrunner, with other key internal candidates being chief financial officer Mark Fookes, head of asset ­management Matthew Faddy, and head of funds management Nicholas Harris.

Mr Ferguson said there was ­inevitably disappointment, but “they are a mature bunch of people and their attitude is positive. They said: ‘When does he start, so we can get cracking?’.”

Mr Johnston goes to GPT’s ­offices next week for a “town hall” meeting with staff, and to talk to the internal candidates individually, Mr Ferguson said.

One fund manager, who declined to be named, said investors would have breathed a “collective sigh of relief” with the appointment of an experienced property leader.

Investa Office chief executive Campbell Hanan and Dexus chief operating officer Craig Mitchell were said to have been considered.

“Some of the internals probably weren’t ready and they didn’t have that public market experience,” the fund manager said.

“I’m thinking that everyone is quite relieved given that Bob’s style is very frank; he is upfront about how business is going, and I think an external appointment is a good opportunity to make some changes at GPT,” he said.

Folkestone Maxim Asset Management managing director Winston Sammut backed the move.

“Michael Cameron was there as a fix-it man and now they have got a property person who knows the market, knows development.”

Julia Forrest, BT Financial Group portfolio manager, said: “We were a very happy shareholder in Australand and have had great experiences with Bob.”

While CLSA analyst Michael Scott said that, in a market where investment property yields were tightening, the group may look to grow its portfolio through development rather than acquisitions under Mr Johnston’s leadership.

GPT’s shares closed at $4.47 yesterday, up 4c.

[greengiraffe]

Hope springs eternal
178 words
1 Aug 2015
Gold Coast Bulletin
GCBULL
English

HOPE Island is becoming the Gold Coast’s development sales hotspot with local projects across the prestigious golf and marine-based community chalking up close to $50 million in sales this year.

Major developers reaping the benefits of Hope Island’s resurgent popularity include leading Gold Coast company Sunland, which has sold out its 40-townhome The Quays project for a total of more than $18 million.

Nearby, Australand’s Cova community has notched up 137 sales in 12 months, the best annual sales rate for the project since its launch. The community has secured 35 contracts worth $14.1 million in 2015 so far.

Greg Shipton, of McGrath Projects, said Hope Island was experiencing a boom. “Hope Island is certainly back on the radar of developers and buyers and that is reflected in the uptake in sales,” Mr Shipton said.

Buoyed by strong sales activity across the resort community, developer Richope is preparing to launch its $100 million Anchorage waterfront apartment complex.The project is already drawing strong interest ahead of its launch.


News Ltd.

http://www.australand.com.au/Projects/Cova/SMP/SMP-Cova

Berths added extra
74 words
11 Jul 2015
Courier Mail
COUMAI
English
© 2015 News Limited. All rights reserved.
COVA at Hope Island has released the only townhouse and freehold marina berth packages on the Gold Coast.

Australand’s Enclave Collection release features 19 three-bedroom, two-bathroom townhouses, with optional marina berth.

The berths are available exclusively to Cova residents and are around 3.4 nautical miles to the Gold Coast Broadwater.The townhouses start from $395,000 and the home and berth packages start from $436,895.


News Ltd.

Document COUMAI0020150710eb7b000du

[Contrarian]

Greengiraffe san,

Your information is really updated. Thank you for sharing.

The departure of ALZ CEO is a loss. How great you think is this loss to ALZ? How do you think FCL can overcome this loss?

[greengiraffe]

Aussie CEOs are top notch pros... as long as u can afford their salaries, they will move.

ALZ is a ship shape co. Former CEO has done well to unlock value for his former holders (excluding capland) and handed over smoothly to the new team.

I personally think that there is no losses as well as the state focus development team plus the investment prop div unit heads should remain intact.

Given his familiarity, Bob could well be back to knock on FCL doors to help GPT purchase assets but that is pure speculation as of now.

If we looked at AVJennings guidance, the mass housing sector should have momentum notwithstanding the slowdown after a heady run. Note that FCL-ALZ have lesser exposure to prop targeting on investors.

I think the immediate headwind would be the lower translation earnings for Aussie focus operations.

Domestically, FCL's exposure to the residential sector should be limited as they have not been actively bidding to replenish landbank apart from running down on their landbank. Northgate residence sales should have gotten them off the hook. I think the Cecil Street office could be iffy but who knows they may yet pull it off.

Anyway, if Towkay still remains stuck on his 88% stake, then we will be assured that he will maintain high div yield for himself and us.

Current share price will of course present us as laughing stock but relative to other bashed down sector, FCL has "OUT-performed" on a relative basis which to me and many others are a conjob.

I have no hard assets so exposure to FCL is an alternative to me.

Now Wrong Term Investment
GG

Greengiraffe san,

Your information is really updated. Thank you for sharing.

The departure of ALZ CEO is a loss. How great you think is this loss to ALZ? How do you think FCL can overcome this loss?

[thor666]

Q3 results out
http://infopub.sgx.com/Apps?A=COW_CorpAn...990eac758c

Sent from my D5503 using Tapatalk

[greengiraffe]

http://infopub.sgx.com/FileOpen/FCL_%203...eID=363653

Very transparent property conglomerate:

Australand's recurrent income is a key feature of PBIT and contributions from ALZ residential appears to remain small largely due to comparison against Central Park completion last year - I suspect ALZ residential may contribute a lot more going forward.

Seriously nothing much that I can ask for liao... they are light in areas of perceived troubles while remain v strong in countries that are performing strongly - largely Australia. The only drawback in Australia is the weaker A$ and potential cool off impact from tighter bank exposures to investor segments.

Fundamentals remain intact

Vested
Core
GG

Q3 results out
http://infopub.sgx.com/Apps?A=COW_CorpAn...990eac758c

Sent from my D5503 using Tapatalk

[greengiraffe]

Macquarie maintain OUTPERFORM:

Frasers Centrepoint Ltd
Strong 3QFY15
Event
 After market close, Frasers Centrepoint Limited (FCL) reported 3QFY15 clean
net profit, ex. perps, of S$165m (+74%YoY,+86%QoQ). The results were well
within our estimates of S$160m. Reiterate Outperform.
Impact
 Results highlight. The bulk of the earnings improvement was driven by
FCL’s development business, which came in at S$183m (+137% QoQ,
+207% YoY) due to project completions in Singapore (Waterfalls EC) and
strong China resi sales. Frasers Australand disappointed slightly against our
numbers due to lower-than-expected resi revenue recognition. The rest of the
businesses (Commercial and Hospitality) were broadly within our
expectations.
 9MFY15 residential sales on track. In Singapore, 680 units were pre-sold
(70% of FY16 target). North Park Residence achieved ~80% sell-through,
which is commendable given the current subdued market. China achieved
1,700 of pre-sales, reaching our FY16 target. Frasers Australand achieved
2,335 units (75% of FY16 target). FCL now has S$3.5bn of unrecognised
revenues from residential presales.
 Steady performance from investment properties and REITs (40% of
RNAV). FCL’s FCT and FCOT saw good rent reversion (5-7%) and steady
occupancy (>95%). Australand’s industrial portfolio improved occupancy this
quarter +2.8ppt to 96.2.
 FCL will host a post results briefing call tomorrow at 10am SG time.
Earnings and target price revision
 No change.
Price catalyst
 12-month price target: S$2.24 based on a Sum of Parts methodology.
 Catalyst: Improvement in free float.
Action and recommendation
 Reiterate Outperform. FCL has once again demonstrated good resi sell
through rates across its key markets. As highlighted in our initiation report, the
gap to RNAV should close.
 FCL shares are cheap, trading at a 55% discount to RNAV (ex investment
properties and REITs) and 0.76x P/B (ex perps) backed by 7.5% ROE (MQ
FY15E). We highlight that 9MFY15 annualised ROE is already tracking at a
higher 8.2%.

[Contrarian]

Daiwa Report Aug 2015:

> Management’s internal asset-size target over the next 3-4 years is SGD5bn (vs. SGD2.4bn currently), with most of the external growth coming from its sponsor’s pipeline. We regard the
> largest and most visible acquisition target as Northpoint City, which could be acquired in 2019. Our ballpark valuation for the retail component, which will be integrated with the current
> Northpoint, is SGD1bn. Outside Singapore, FCT could eventually acquire some of its sponsor’s retail assets in Australia.

If this really takes place next 3/4 years, then FCT trust will generate more yield for unitholders. And FCL will get to generate more fee income. Win-win for both...

[greengiraffe]

DBS maintain BUY:

Boosted by development completions
 Strong set of 3Q15 results
 Clear income visibility through locked-in sales
 Time-tested strategy to recycle capital into REITs a
key catalyst
 BUY, TP S$2.36
Highlights
Strong set of results in 3Q15
 Frasers Centrepoint Limited (FCL) reported a 43% rise in
PATMI to S$181.5m ( or 98% rise after stripping off fair
value gains in 3Q14). This was on the back of a 157%
increase in revenues to S$1.01bn. The property
development business segment was a major driver to
topline, contributing c.64%, followed by Hospitality (12%),
Australand (10%), investment properties (10%) and others
(2%).
 The significant 375% rise in revenues for property
development segment to S$651m was mainly due to
recognition of Twin Waterfalls EC in Singapore which
contributed S$572m as the project was completed in the
quarter. This was also supported by ongoing sales at
Suzhou Baitang in China as units in completed phases were
delivered and Gemdale Megacity 2A started contributing.
 Hospitality segment revenues and PBIT grew by 136% and
55% to S$119m and S$30m respectively, largely due to the
contribution from six hotels acquired by Frasers Hospitality
Trust (FHT) post listing from TCC Group. In addition, an
expanded portfolio – Sofitel Wenworth and Capri by Fraser,
Changi City also contributed to the topline growth.
 Frasers Australand contributed positively to the group’s
earnings. Average portfolio occupancy for the investment
properties remains high at 96%.
Strong balance sheet metrics
 Net debt-to-equity remains stable at 0.9x, within
management's comfortable range. Both interest cover and
percentage of fixed rate debt remain high at 8x and 63%
respectively.
Outlook
Clear visibility of locked-in sales.
 FCL continues to offer strong earnings visibility through
almost c.S$3.5bn in locked-in sales, which it is expected to
recognise in the coming years. These are from its
development projects in Singapore (S$1.3bn), China
(S$0.6bn) and S$1.6bn from its residential development
pipeline in Australia, underpinning strong income visibility in
the medium term. While the group continues to draw down
on past top-selling projects, this is replenished from the
strong sales achieved at Northpark Residences in Singapore
(570 units sold out of 700).
 The group’s landbanks for future sales are mainly coming
from China and Australia which management is looking to
launch opportunistically in the medium term.
Targeting to derive 60% of its income base from recurring
revenues
 59% of FCL’s revenues are recurring, with a longer-term
target of 60-70%. Looking ahead, we see growing income
from the completions of Punggol Point (retail), Northpoint
City (retail) and Frasers Towers (commercial), which will
boost its earnings further while Centrepoint Mall is
expected to undergo a S$50m makeover to boost traffic
and revenues post completion in 2H16. Frasers Hospitality is
also expected to see its footprint expand to 30,000
managed units by 2019.
Existing capital recycling platforms
 FCL has existing capital recycling platforms in its listed REITs,
Frasers Centrepoint Trust, Frasers Commercial Trust and
Frasers Hospitality Trust, which can potentially acquire
stabilised assets from FCL, freeing up capital to invest in
other higher ROE development projects. The group has
recently completed the sale of 357 Collins Street to Frasers
Commercial Trust, a demonstration of its recycling
capability.
Valuation:
We recommend BUY on FCL, with a target price of S$2.36
based on a 30% discount to RNAV. We think that FCL is
attractive at 0.7x P/Bk NAV and believe that the stock is
trading at this level largely due to its tight liquidity
constraints.
Key Risks:
Small free float. The stock has low free float with 87.9% of
the company held by major shareholders TCC Group and
Thai Beverage, thus leading to low liquidity.
Currency risk. The group derives an estimated 30% of PBIT
and 35% from Australia and could be impacted by the
weakening AUD/SGD exchange rate.
Target Price & Ratings History
Source: DBS