What I learnt from Frasers Commercial Trust's latest 2QFY17 Result and Presentation Slides

Frasers Commercial Trust makes up close to 10% of my stock portfolio and is the second largest after M1. Here's a summary of their latest earnings report and what I have learned from their Presentation Slides.

Distributable income increases by 3.5% year-on-year. Sounds good? Generally, I would prefer to look at DPU as the shareholder pool may have increase over the 1 year period.

Fortunately, I am not disappointed. The DPU grew by 2.4% compared with a year ago. Good Job!
The improved results was due to better performance from Australian portfolio and stronger Australian dollar as shown below.

The properties of FCOT and occupancy rate are as shown below.

The Lease Expiry for FCOT's properties in FY17 is as shown below. It is not mentioned if HP would be renewing the 5.4% leasing that is going to expire. The uncertainty in HP leases expiry has been a concern for shareholders. HP has a built-to-suit facility with Mapletree at Telok Blangah Cluster that would be completed in second quarter of 2017. There has been speculations that HP would move to the new facility. Existing and potential investors should take note of this. The rent of $4.30 is low for Alexandra Technopark  as compared to the other 2 local properties.

The positive rental reversion looks good especially for Alexandra Technopark if FCOT could renew existing leases or find new tenants.

Lease expiry for FY18 is very high. Something to watch out for. 😓

Alexandra Technopark is undergoing AEI currently and the works should be completed around mid-2018. Further positive rental reversion after AEI completed?

HP. Look what you could be missing if you move out. 

As at 21/4/2017, FCOT's closing share price was $1.335. It is currently trading below it's NAV. 

FCOT won 2 prestigious awards at The Global Good Governance Awards 2017. Congrats!

My past transactions for this stock is as follows. As you can see, I have been averaging down. For the past 3 quarters, I have opted to receive units in place of cash for dividends. The current closing price is about my average purchase price. I may opt to receive cash this time round if the offer price is above my average purchase price. 

Screenshot from stocks.cafe. A very good site to keep track of your portfolio.

At current price of $1.335, the dividend yield is still very attractive among commercial Reits. My forecast yield for this year is 7.51%. The Management has done a good job so far in growing the DPU. Hopefully, they would continue to do so for the coming years and I would stay vested with this Reit that has good Governance. 😃

See how the DPU and yield has been growing over the years!