WRITTEN BY THE EDGE

WEDNESDAY, 26 JANUARY 2011 22:22

Frasers Commercial Trust says gross revenue was for the first quarter ended Dec 31, 2010, was $29 million, 2.3% lower as compared to a year ago. This was mainly due to lower contribution from Cosmo Plaza as a result of the expiry of a significant tenancy in August 2010. Correspondingly, net property income was 2.4% lower at $22.9 million. Total distributable income was up by 4.1% year-on-year to $12.6 million from $12.1 million. This was attributable to an absence of loss from realisation of forward contract incurred in the prior year. After accounting for distribution to Series A Convertible Perpetual Preferred Units (CPPU) holders of $4.7 million, amount available for distribution to unitholders was $7.9 million, an increase of 6.7% from a year earlier.   //Theedge/

You can hardly Q to buy........I was lucky to buy some more at the sell Q @ 16cts recently......within 2 hour 13K lots all sold.

It turn out that the manager is selling their management fee......

This is perhaps the only REIT trading at penny price.  And some funds will not trade or invest in sub dollar stock.

By doing a 5-to-1, the stock become a 80~90 cts stock.  With a little push, $1 mark is possible.

For $1 it is 20cts now.....see the gap......and still undervalue.

The only con I see is that the gearing is higher than normal @ 39% compare with 20%. Has not loss money ever seen F&N took over.

A strange report.  To get a BUY call the TP should have at least a 15% upside to rate lor.

It is so funny to add dist yield to at 12.6%....which still fall short of the BUY call.

hmphie      ( Date: 22-Nov-2010 20:45) Posted: Frasers Commercial Trust Nov 18 close: S$0.16 OCBC INVESTMENT RESEARCH, Nov 18 FRASERS Commercial Trust (FCOT), a real estate investment trust (Reit), owns 10 properties across three countries with retail and office components. FCOT derives some 52 per cent of its gross revenue from Singapore, which comprises China Square Central, 55 Market Street and Alexandra Technopark. These assets are either high-quality commercial properties located near the heart of the financial district or high-tech business space developments at the fringe area of the central-region of Singapore. FCOT also own four commercial properties in Tokyo & Osaka. Other assets include Central Park (Perth), which is a premium grade office tower and the tallest building in Perth.   FCOT's sponsor is Frasers Centrepoint Limited (FCL), a wholly owned subsidiary of Fraser and Neave, (F&N). FCL is a leading Singapore-based property company with a strong global foothold in property development, property investment, serviced residences and investment funds. Apart from having financial support, a developer sponsor also allows FCOT to be granted rights of first refusal to a possibly rich pipeline of sponsor-owned assets for future acquisition. In the near to middle term, StarHub Centre, Alexandra Point and Valley Point are slated as possible asset injection targets for FCOT, if they prove yield-accretive to unitholders. FCOT enjoys a number of blue-chip long tenure leases such as Commonwealth of Australia, BHP Billiton Petroleum, and master leases that provide long term income stability to the Reit along with potential for rental upside. Approximately 65 per cent of FCOT's revenue is derived from such leases. One-quarter of its gross rental income also has built-in annual rent step-ups. In line with our 'overweight' rating for office Reits, we believe that FCOT will likewise be able to ride on the recovery cycle and benefit from positive rental reversions in FY2011 to FY2012. We also see potential to grow income through asset enhancement initiatives and acquisitions. At S$0.16 per unit, FCOT is trading at a 59 per cent discount-to-book compared to the broader office Reits which are trading at 30 per cent discount-to-book. We believe this significant discount is unwarranted, considering FCOT's high-quality assets, strong sponsor and sound financials. FCOT recently proposed the unit consolidation of five existing units, which it thinks will improve the market perception and attractiveness of its units. We concur with the manager's strategy and apply a 40 per cent discount to our RNAV instead, deriving a fair value of S$0.17. This translates to an estimated total return of 12.6 per cent (price upside: 6.3 per cent; distribution yield: 6.3 per cent). We initiate coverage of FCOT with a 'buy' rating. BUY

It is about time la.....the float is too big and 16 odd cts looks pathetic lor. 80 ~ 85 cts look more pro and easier to cross the dollar mark....will look more like a mid cap.

Those who don't want to see 24K lot Q on the sell column everyday should support lor.....heeeee...