Frasers Property Limited - DBS Research 2023-09-14: Immense Value Within; Unappreciated Diversified Developer

• We are reinstating coverage on Frasers Property with a target price of S$1.21 pegged to a 60% discount to our revalued net asset value (RNAV) of S$3.02. We see deep value for the group with Frasers Property's share price trading at 0.3x P/B, anchored at a historical low.
• - Read this at SGinvestors.io -

Diversified developer with a global platform.

• Frasers Property (SGX:TQ5) is a developer with a diversified portfolio of properties globally, with key exposure in Singapore (~34%), Australia (~28%), Europe (~21%) and others (~17%).
• - Read this at SGinvestors.io -

The market is assigning zero value for Frasers Property's role as sponsor of its REITs.

• Frasers Property and through its listed subsidiary, Frasers Property Thailand (FPT) are sponsors to 5 REITs in Singapore (3 listed S-REITs) and Thailand (2 listed REITs).
• As sponsors, Frasers Property provides its REITs with acquisition pipelines for injection and growth, and benefits from the ability to recycle its capital and pursue acquisitions and development opportunities that fits its risk-reward benchmarks. Frasers Property stands to benefit from higher recurring management fees as its managed REITs continue expanding their portfolios.
• Among the 5 REITs, Frasers Centrepoint Trust (SGX:J69U) and Frasers Logistics & Commercial Trust (SGX:BUOU) are the larger REITs, each with a market cap of ~S$4bn. These are more effective recycling vehicles for Frasers Property to inject its assets over time.
• Based on our estimates, there is a pipeline of properties worth up to ~S$8bn that can be potentially injected into Frasers Property’s REITs over time.
  • Read more at SGinvestors.io.
  
  
  
  

  
  Above is the excerpt from report by DBS Group Research.
  Clients of DBS may access the full report in PDF @ https://www.dbs.com/insightsdirect/.
  
  

  
  
  Rachel TAN DBS Group Research | Derek TAN DBS Research | https://www.dbs.com/insightsdirect/ 2023-09-14 SGinvestors.io
  
  

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  Read also DBS's most recent report:
  2024-05-14 Frasers Property - Down But Not Out.

  Previous report by DBS:
  2023-11-16 Frasers Property - Return Of The High-Yielding Developer!.

  Price targets by other brokers at Frasers Property Target Prices.

  Listing of research reports at Frasers Property Analyst Reports.

  Relevant links:
  Frasers Property Share Price History,
  Frasers Property Announcements,
  Frasers Property Dividends & Corporate Actions,
  Frasers Property News Articles