On the evening of 5 November 2018, Frasers Logistics and Industrial Trust (SGX: BUOU) reported its fourth quarter and full year earnings update for its fiscal year ended 30 September 2018 (FY2018). As a quick introduction, Frasers Logistics and Industrial Trust is a REIT that focuses on logistics and industrial properties. Its portfolio, which currently has a value of over A$3.0 billion, consists of 83 properties in Australia, Germany, and the Netherlands. Let’s take a quick look at the important points about Frasers Logistics and Industrial Trust’s latest results for the fourth quarter of FY2018: 1. Gross revenue for the reporting quarter increased by 43.2% year-on-year to A$60.44 million, and adjusted net property income followed suit, rising by 52.6% to A$49.31 million. The ste

With property companies in Singapore being hit by both the recent property cooling measures and the prospect of rising interest rates, many property companies listed here have fallen greatly from their January highs. I've began to take interest in property companies recently, as a number of them are trading close to their 52-week lows. Another proxy for our local residential property market would be APAC Realty, which has seen its share price performing poorly of late. As interest rates increases, home buyers face higher financing costs for their property, which may result in them scaling back on their purchases.In July, when the latest property cooling measures were implemented, property developers here sold off sharply during the next few days. However, it would be important to note that

Singapore listed Frasers Logistics and Industrial Trust (FLT) yesterday evening made an announcement that they will acquire a logistic property from parent Frasers Property Limited (FPL). The acquisition should be part of the portfolio that FPL acquired a year ago. Perhaps the property have not stabilized to be acquired during FLT’s last round of acquisition (read My Analysis of Frasers Logistics & Industrial Trust’s Purchase of 21 Logistic Properties in Germany and Netherlands). The Net Property Income Yield of this property is 5.4%. Perhaps it pays to reference the table from the acquisition in the article stated above. The NPI Yield seem to have compressed a little from 6 months ago but it is not too far off from the 5.5% median NPI Yield. This property is leased for 15 ye

Frasers Logistics & Industrial Trust (SGX: BUOU), a REIT that specialises in logistics and industrial properties in Australia, Germany, and the Netherlands, announced yesterday that it had acquired a logistics property from its sponsor Frasers Property Limited (SGX: TQ5). Here are 10 key takeaways from the announcement: 1. The asset is a prime logistics property located in Meppel in the Netherlands and its land tenure is freehold. The acquisition increases the total number of properties held by Frasers Logistics & Industrial Trust from 82 to 83. 2. The new property has a gross lettable area (GLA) of 31,013 square metres and construction was just completed a few months ago in May 2018. 3. The new property is fully leased to FrieslandCampina on a 15-year, triple-net lease. A triple-n

Frasers Logistics & Industrial Trust (FLT) announced that it would be expanding to Europe via acquisition of a Special Purpose Vehicle that holds interest in 21 industrial properties located in Germany and the Netherlands.FLT is a Reit that holds 61 industrial and logistic properties in Australia worth about A$1.93 billion, concentrated in major cities of Sydney, Melbourne and Brisbane.It is part of the Frasers Property Group that also owns other Reits in retail, office and hospitality sector such as Frasers Centrepoint Trust and Frasers Commercial Trust and Frasers Hospitality Trust.Predominantly Freehold Prime Properties93% of the twenty one properties to be acquired are freehold. This means that investors need not worry about land use rights and properties value decay towards the en

Axis REIT is the first Islamic business space and industrial REIT to be listed on Bursa Malaysia. As at 30 June 2018, Axis REIT has a portfolio of 42 properties worth RM2.66 billion. In this article, I’ll cover Axis REIT’s results for the last 10 years and discuss its plans for growth in the near-future. Here are 12 things to know about Axis REIT before you invest: Group financials 1. Axis REIT \expanded its portfolio size by a compound annual growth rate (CAGR) of 14.91% for the past 10 years — from 19 properties worth RM730 million in 2008 to 40 properties worth RM2.55 billion in 2017. The REIT acquired two more properties in 2018 increasing its total number of properties to 42 and portfolio size to RM2.66 billion presently. Source: Axis REIT Q2 2018 and annual reports 2. Gro

There is often much investment wisdom to be gleaned from seasoned investor Warren Buffett’s quotes for value investors to ponder over. For instance in a letter Buffett wrote to his shareholders in 2010, the Oracle of Omaha commented that, “Opportunities come infrequently. When it rains gold, put out the bucket, not the thimble.” Against the strengthening Greenback underpinned by repeated rate hikes, not only currencies from the emerging markets were badly hit but even those from the mature markets were not spared. Specifically, the currency in question here is the weakening Australian Dollar (AUD), which has affected companies running businesses in Australia as they reported less than desirable results after earnings were translated back into the reporting currencies. Among them, we

The Australian dollar is the fifth most traded currency in the world. It can also be quite volatile. Factors such as interest rate, commodity prices and the health of the Australian economy can have an impact on the value of the currency. Recently, the Australian dollar weakened compared to the Singapore dollar, where one Australian dollar now is worth less than a Singapore dollar. As the latter declines, companies that do business in Australia will likely be affected. With that said, I have identified three companies that might be affected by the weakened Australian dollar. 1. Ascendas Hospitality Trust (SGX: Q1P) owns a portfolio of 10 hotels located in Singapore, Australia, Japan and Korea. However, around 64% of its total revenue comes from its Australian properties. In its recent quar

Following the Fed committee’s view that inflation has no signs of overshooting above two percent, the market is now of the view that the gradual process of normalisation remains appropriate. This led to the easing of bond yields. In Singapore, the Singapore government 10-year bond yield has eased since peaking in May. OCBC Strategy: Get Defensive With REITs, But Be Selective As bond yield eases, OCBC is seeing some respite in demand for S-REITs in the near term. On top of that, the ongoing macroeconomic uncertainties emanating from the US-China trade friction. This will further drive investors’ flight to safety to REITs. Going forward, OCBC believes that S-REITs can warrant a strategic position in investors’ portfolio, albeit in a selective manner. From a tactical positioning, OCBC

No.  Counters No. of Shares Market Price (SGD) Total Value (SGD) based on market price Allocation % 1. Vicom 28,300 6.17 167,400.00 25.0% 2. Singtel 46,000 3.11 143,060.00 18.0% 3. Frasers Logistic Trust 126,000 1.07 134,820.00 20.0% 4. M1 75,000 1.59 119,250.00 18.0% 5. Starhill Reit 100,000 0.68   68,000.00 10.0% 6. Far East Hospitality Trust 100,000 0.65   65,000.00 10.0% 7. Warchest - -     1,000.00 1.0% Total 698,530.00 100% Less: CFD Leverage @ 3.2%  (12,810.00) Net Gearing: 0.018x Net Total 685,720.00 100% August was a very good month for the portfolio.While there was ongoing market turbulent from the stock market that causes

Back when I was reviewing Frasers Logistics and Industrial Trust’s (FLT) Q2 2017 result, I notice the big difference between its dividend per unit in that quarter versus the same dividend per unit in Q2 2016. Back then the DPU declared was S$1.81 cents. If it is paid in Australian cents, it would be A$1.77 cents. In Q2 2016, the DPU for SGD and AUD was S$1.75 and A$1.75 respectively. FLT hedge their currency only 6 months and the hedge rate was A$1 to S$1.0647. In 2016, it was A$1 to S$1. Thus, currency depreciation or volatility, can affect the DPU paid out. There is also another difference between the result in Q2 2017 and 2016. The management fees paid out in units for Q2 2017 is lower, while in Q2 2016, FLT paid out its management fee fully in units. I wonder whether, in the even

FPL’s 3QFY18 core PATMI of S$157m (-13% YoY) came in above estimates, due to faster-than-expected recognition of development profits in Singapore. Net gearing improved 6%pts QoQ but remains high at 89% and suggests that more properties are likely to be injected into its listed S-REITs. Also read: Parc Esta new launch cond (former Eunosville) up for sale On the residential front, volumes jumped 35% QoQ to 897 units. (adsbygoogle = window.adsbygoogle || []).push({}); The recurring-income segments posted a mixed performance this quarter, with Singapore office seeing negative reversions and Hospitality SBU posting a 2nd quarter of net loss but solid occupancies in its Singapore retail and Australia investment properties. FPL has fallen 18.3% YTD, underperforming both Developers (-8.3%)

Keppel DC REIT (KDCREIT) has announced a new shell and core (S&C) data centre in Sydney, Australia, which will be constructed on the vacant land within the Macquarie Business Park precinct. The development will be undertaken by Macquarie Telecom, which is the current master lessee of KDCREIT’s S&C data centre – Intellicentre 2 Data Centre (IC2). Macquarie Telecom will also be the master lessee with a 20-year triple-net lease (with built-in annual rental escalations) in this new S&C data centre upon its completion between 2019 and 2020. KDCREIT’s attributable construction costs work out to between A$26m to A$36m, with an estimated NPI yield of over 7%. (Source: Keppel DC REIT) (adsbygoogle = window.adsbygoogle || []).push({}); St. Thomas Ville, a freehold 23-unit 18-y

Frasers Logistics and Industrial Trust (SGX: BUOU), which owns a portfolio of 61 properties in Australia and 21 in Europe, recently announced its results for the April to June period (the third quarter of its financial year). Here are the important takeaways from its earnings update: 1. Gross revenue was A$49.3 million, up A$9.1 million or 22.6% from the corresponding period last year. Adjusted net property income (NPI) rose 27.4% to A$39.3 million from A$30.8 million. 2. The higher NPI was driven by the contributions from acquisitions and annual fixed rental escalation. The new acquisitions (seven properties acquired in 2017 and 21 in May 2018) contributed A$7.4 million. 3. Distributable income rose 22.4% to A$30.7 million from A$25.0 million. Distribution per unit rose 2.9% to 1.80 Singa

First published in Business Times on 1 August, 2018 By Mak Yuen Teen and Chew Yi Hong Last year, we launched the Governance Index for Trusts (GIFT), the first-ever published governance index in Singapore that is specifically developed for listed real estate investment trusts (Reits) and business trusts (BTs) in Singapore. GIFT assesses both governance and business risk factors. We assessed 43 trusts. This year, we covered 44 trusts, comprising six that are constituted as stapled securities (SS), nine pure business trusts and 33 Reits. We excluded four newly-listed trusts that have not yet published an annual report at the cut-off date. Some changes were made to the index, including the addition of a small number of new demerit criteria, and replacing volatility of returns with a criterion

SINGAPORE, 31 July 2018 – Keppel DC REIT has retained the top ranking for the second edition of the governance ranking specifically designed for Singapore-listed real estate investment trusts (REIT) and business trusts (BT), joined at the top by CapitaLand Commercial Trust which has moved up from number 8 in last year’s ranking. Two other trusts made significant gains to enter the top 5, with Mapletree Commercial Trust moving from 15 to 4 to joint third position with Mapletree Greater China Commercial Trust (since renamed to Mapletree North Asia Commercial Trust), which made the biggest leap from number 26. Just half a point separated the top 4 trusts, making this GIFT ranking very competitive. Meanwhile, Frasers Logistics & Industrial Trust, which is ranked for the first time,

It seems Advanced Distribution Amount does change even though an amount was given before hand. Frasers Logistics and Industrial Trust announced a Private Placement and non-renounceable preference offering in April 2018, to fund the purchase of 21 properties in Germany and Netherlands from its parent Frasers Property Limited. As there are new units issued, usually a REIT or stock would declare an advance dividend distribution for existing shareholders, which the shareholders who joined later through the preference offering and placement, cannot enjoy. In the launch of equity fund raising article, it highlighted that an ordinary dividend of $0.0361 was announced. This has since been distributed. The advance distribution is $0.0069, which is for the period of 1st Apr to 21st May, which is th

The earnings season is back with numerous companies and real estate investment trusts (REITs) releasing their earnings updates over the next few weeks. Among the REITs that are releasing their results, I am keeping a close eye on two REITs in particular that have recently made major acquisitions and/or disposals that can impact their distributions. This earnings update will give investors a clearer picture of their post-dealing position. Frasers Logistics and Industrial Trust (SGX:BUOU), will release its earnings update on Wednesday, 1 August 2018. For the quarter ended 31 March 2018, it delivered a strong showing as gross revenue climbed 6.4% while distributable income rose 3.2%. In June, the trust completed its acquisition of 17 properties in Germany and four in the Netherlands, marking

No.  Counters No. of Shares Market Price (SGD) Total Value (SGD) based on market price Allocation % 1. Vicom 27,000 6.20 167,400.00 25.0% 2. Frasers Logistic Trust 126,000 1.06 133,560.00 20.0% 3. M1 75,000 1.61 120,750.00 18.0% 4. Singtel 37,000 3.24 119,880.00 18.0% 5. Far East Hospitality Trust 100,000 0.66   66,000.00 10.0% 6. Starhill Reit 100,000 0.65   65,000.00 10.0% 7. Warchest - -     1,000.00 1.0% Total 673,590.00 100% It's time for another month of updates.Investors Exchange 2018First up, I wanted to update quickly on how the investors exchange talk went yesterday.I thought it was heartening to see so many people turned up and very serious about taking charge of their financ