Friday 5 May 2017

Frasers Logistics and Industrial Trust (FLT) Q2FY18

Overall Summary

  1. Debt Interest Rate remain at 2.8%
  2. Earlier debt expire is FY2019 and now we are at Q2FY17
  3. No change in occupancy from Q217 at 99.3%
  4. No significant lease expiry for the near term until FY2019

Dividend History


FY16 1HFY17
1.84 3.49


Lease Expiry



















Debt Profile



Monday 1 May 2017

Frasers Hospitality Trust Q217


Overall Summary

  1. Dividend still trending down on hospitality weakness.
  2. Despite few acquisition, it is still unable to maintain the dividend.
  3. 5 out of the country portfolio still having challenges, Australia portfolio relatively stable.
  4. 96.2% of FHT’s assets are unencumbered and debt provided in local currency hence natural hedging

Dividend

It was launch in mid 2014, the DPU has been not very stable and toward downtrend even with the acquisition despite all the follow up, gross revenue, net property income, distribution income up and the management fees is up.











 

Gearing

It has been down from 38.3% to 33.4% mainly due to the rights issues for the NOVOTEL MELBOURNE ON COLLINS acquisition

Singapore Properties

  1. Higher GOR for Singapore properties was due to higher occupancy levels recorded at InterContinental Singapore (ICSG) following completion of the renovation in 2Q FY2016. Decline in GOP was mainly attributed to higher costs incurred by Fraser Suites Singapore (FSSG)
  2. ICSG continued its stride to reach optimal performance with higher RevPAR and food and beverage revenue.
  3. FSSG turned in flat RevPAR due to continued weakness in corporate demand from oil and gas and banking industries. It is actively pursuing new accounts from engineering, government and manufacturing industries.

Japan Property

  1. The strength of the Japanese yen has impacted international arrivals in the Kansai region. This has led to less spill-over traffic from Osaka and lower occupancy levels for Kobe market-wide.
  2. GOR and GOP dropped 5.2% and 9.7% respectively as a result of lower room and banquet revenues.
  3. CPK will continue to focus on increasing revenue from conferences and events to improve performance.

Malaysia Property

  1. Significant supply in the pipeline in the coming years is expected to place pressure on hotels to reduce rates (http://www.jllapsites.com/research/appd-market-report/q4-2016-hotels-kuala-lumpur)
  2. The market remains under pressure from the extensive supply pipeline and in 2016 approximately 1,950 hotel rooms were added across all market segments. In addition, close to 700 new serviced apartments also boosted stock. 
  3. New openings in the luxury and upscale segments included the 208-room St Regis Hotel in Kuala Lumpur Sentral and its adjoining 160-residences. In addition, the completion of Ritz-Carlton Residences added a further 296 units. Looking ahead, upcoming openings in 2017 include the Sofit el Kuala Lumpur Damansara, Banyan Tree Signatures Pavilion and Royale Pavilion Hotel

Germany Property

There is no comparison against the preceeding quarter however if looking at Q1FY17, the number does not look good.

UK Property

  1. GOR and GOP of the UK portfolio increased 10.1% and 9.6% yoy respectively due mainly to a softer 2Q last year arising from heightened security and Brexit concerns.
  2. The properties remained cautious on the back of the impending effect of Brexit.

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