Saturday, 9 September 2017

Frasers Commercial Trust (FCOT) Q3FY17

Overall

  1. Between now to 1Q18 will need to assume lost of income around 18% of gross rental
    1. Are you ready to accept the worst scenario?
  2. WALE for Singapore office is pretty short which around 1 years plus
  3. Based on the average 3-5 years lease period, the likely worst rental reversion may come in FY18 on-ward as office rent was on uptrend from 2014 to 2015
  4. No much catalyst to boost the DPU.

Dividend


Drop to 2.39 cents (which also inclusive of the income support due to the hotel development in China Square) or down about 4% compare to previous quarter however compare to previous financial it is relatively stable.
Q2 the manager has opt to receive 12% fee in unit whereby in Q1 the management opt to receive 100% in cash

Lease Expiry Profile


Till to date, there is no much news on HP on renewing
  1. In the final quarter of FY17 from July to September 2017, major leases expiring include the lease of Hewlett Packard Enterprise Singapore Pte Ltd (“HPE”) at Alexandra Technopark which contributes approximately 5.6% of the portfolio gross rental income. 
  2. In the first quarter of FY18, major leases expiring include the leases of HPE and Hewlett Packard Singapore Pte Ltd at Alexandra Technopark, which contribute approximately 1.5% and 11.1% of the portfolio gross rental income, respectively.
FY17 Lease Profile


Overall Lease Profile

















Debt Profile

  1. No debt maturing until August 2018
  2. Debt expiring in any one financial year no more than S$182 million
  3. 91% of gross borrowings on fixed rate



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