Latest news with #FrasersLogistics&CommercialTrust
Business Insider
3 days ago
- Business
- Business Insider
Analysts Offer Insights on Real Estate Companies: Wharf (Holdings) (OtherWARFF) and Frasers Logistics & Commercial Trust (OtherFRLOF)
Analysts have been eager to weigh in on the Real Estate sector with new ratings on Wharf (Holdings) (WARFF – Research Report) and Frasers Logistics & Commercial Trust (FRLOF – Research Report). Elevate Your Investing Strategy: Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence. Make smarter investment decisions with TipRanks' Smart Investor Picks, delivered to your inbox every week. Wharf (Holdings) (WARFF) DBS analyst Jeff Yau downgraded Wharf (Holdings) to Hold today and set a price target of HK$25.10. The company's shares closed last Wednesday at $3.05. According to Yau is a 4-star analyst with an average return of 5.4% and a 72.2% success rate. Yau covers the NA sector, focusing on stocks such as Far East Consortium International, Sunlight Real Estate Investment, and Henderson Land Development Co. Wharf (Holdings) has an analyst consensus of Hold, with a price target consensus of $2.60. DBS analyst Dale Lai maintained a Buy rating on Frasers Logistics & Commercial Trust today and set a price target of S$1.05. The company's shares closed last Friday at $0.67. According to Lai is a 1-star analyst with an average return of -0.4% and a 45.7% success rate. Lai covers the NA sector, focusing on stocks such as Suntec Real Estate Investment, CapitaLand Ascendas REIT, and Daiwa House Industry Co. Frasers Logistics & Commercial Trust has an analyst consensus of Strong Buy, with a price target consensus of $0.80.
Business Times
4 days ago
- Business
- Business Times
FLCT to divest commercial building in Australia for A$192.1 million, exiting Melbourne CBD office market
[SINGAPORE] Frasers Logistics & Commercial Trust (FLCT) will divest an office building in Melbourne's Central Business District (CDB) for A$192.1 million (S$161.4 million), as it seeks to exit the Australian city's office market and focus on logistics and industrial properties. The divestment consideration represents a 0.6 per cent premium over an independent valuation of A$191 million as at Jun 1, 2025, the manager of FLCT said in a bourse filing on Wednesday (Jul 16). The amount will be paid in cash. The sum is also based on a sale price of A$195.3 million, after deducting outstanding tenant lease incentive liabilities, the manager added. The purchaser of the 25-storey freehold office building, located at 357 Collins Street, is an unrelated third party. The sale will be conducted through Collins Street Landholding Trust, a sub-trust of FLCT. FLCT's manager noted that the asset valuation has remained at around A$191 million since September 2024, 'reflecting challenging market conditions in the Melbourne CBD office sector'. It said that the divestment marks a strategic exit from the sector, which 'continues to suffer from remote work culture' and an elevated vacancy level of 18.6 per cent. Subdued tenant demand has also led to rising incentives. A NEWSLETTER FOR YOU Tuesday, 12 pm Property Insights Get an exclusive analysis of real estate and property news in Singapore and beyond. Sign Up Sign Up After the divestment, FLCT's portfolio weighting towards logistics and industrial assets is expected to increase to 74.2 per cent from 72.4 per cent, 'in line with FLCT's strategic objective of achieving higher allocation to high-quality' properties within that segment, the manager said. It added that the divestment – expected to be completed by Sep 30 – will raise FLCT's overall portfolio occupancy rate to 95.2 per cent from 93.9 per cent, and enhance the weighted average lease expiry profile to 4.8 years from 4.6 years. Anthea Lee, chief executive officer of FLCT's manager, noted that the move 'represents another strategic step in our ongoing portfolio reconstitution, which allows us to extract value from a commercial property and re-weight our portfolio towards logistics and industrial properties'. 'The proceeds from the sale will also provide FLCT with enhanced financial flexibility to pursue opportunities in the logistics and industrial space,' she added. The manager estimates net proceeds of S$159.3 million, after a projected divestment cost of S$2.1 million. The amount will be used to fund acquisition opportunities, repay existing debt, and for general corporate and working capital requirements, the manager added. It also noted that if the proceeds are fully used to repay debt, FLCT's aggregate leverage would be lowered by 1.5 percentage points to 34.6 per cent from 36.1 per cent on a pro forma basis. The trust's debt headroom will also rise to around S$2.1 billion post-divestment. Units of FLCT closed Wednesday up 0.6 per cent or S$0.005 at S$0.855, before the announcement.
Yahoo
18-03-2025
- Business
- Yahoo
3 Beaten-Down Sectors to Search for Bargain Stocks
Some investors prefer to use a top-down approach to find suitable investment candidates. 'Top-down' refers to the search for industries or sectors and then zooming in on the companies with them. This method can be effective if your search drills down into beaten-down sectors that investors are pessimistic about. By going through the stocks within such sectors, you may find attractive bargains that you can potentially add into your investment portfolio. Here are three sectors where investors can sift through bargain stocks. The REIT sector has been in turmoil since interest rates were raised at their fastest pace in history back in 2022. Coupled with soaring inflation, many REITs came under pressure and saw their distributable income shrink because of higher operating and finance expenses. Distributable income also declined in tandem, causing distribution per unit (DPU) to fall. Investors started to shun the sector because of its persistent underperformance which has continued into 2025. Several REITs such as Frasers Logistics & Commercial Trust (SGX: BUOU) and Mapletree Pan Asia Commercial Trust (SGX: N2IU) also saw their share prices hit their 52-week lows last month. The good news is that inflation in the US is cooling, which may pave the way for further interest rate cuts by the US Federal Reserve after last year's one-percentage-point reduction. Several REITs also turned in resilient performances by reporting a year-on-year rise in DPU. CapitaLand Integrated Commercial Trust (SGX: C38U) saw its DPU rise 1.2% year on year to S$0.1088 for 2024 while Keppel DC REIT's (SGX: AJBU) DPU inched up 0.7% year on year to S$0.09451. The sector's gradual recover and the presence of several REITs that continued to increase their distributions could make the sector a fertile hunting ground for bargains. Reading the news about the boom in artificial intelligence (AI) and seeing the success of GPU manufacturer Nvidia (NASDAQ: NVDA) may give the impression that the semiconductor industry is booming. However, the truth is more nuanced. The boom in generative AI only impacted a specific area of the semiconductor sector, namely higher-end chips used in graphics processing units (GPUs). For 2023, the Semiconductor Industry Association (SIA) reported that global semiconductor industry sales fell by 8.2% year on year to US$526.8 billion. This decline was because of the slowdown in demand as the COVID-19 surge tailed off post-2022. As a result, many companies that support the semiconductor sector reported weaker earnings. This trend may be about to reverse, though. Micro-Mechanics (Holdings) (SGX: 5DD), a manufacturer of semiconductor parts and consumables, saw revenue rise 10.8% year on year to S$32.5 million for the first half of fiscal 2025 (1H FY2025) ending 31 December 2024. Net profit for the period surged 46.6% year on year to S$6 million. The World Semiconductor Trade Statistics (WSTS) has revised its 2024 projection for the semiconductor market and expects a 19% year-on-year growth. For 2025, WSTS predicts broad-based growth for the semiconductor sector with an 11.2% year on year increase to US$697 billion. The third sector that is under pressure is the property brokerage industry. The Singapore government has introduced four sets of property cooling measures since December 2021 to moderate the rise in housing prices. The most recent round, implemented in August 2024, tightened the maximum loan that home buyers can take from the HDB. The two listed property brokerages have borne the brunt of these measures. PropNex (SGX: OYY) saw its revenue for 2024 dip 6.6% year on year to S$783 million while APAC Realty (SGX: CLN) saw revenue slip 0.7% year on year to S$561 million. PropNex's net profit fell by 14.4% year on year to S$40.9 million and APAC Realty's net profit tumbled 38.8% year on year to S$7.2 million. PropNex, however, has signalled a more favourable outlook for 2025. There was a surge in private homes transacted in the fourth quarter of 2024 and developers are expected to launch around 13,000 new units (including executive condominiums), nearly doubling the supply from 2024. This slate of new releases could be the catalyst for a recovery for the property brokerage sector. APAC Realty also points to Singapore's strong fundamentals which should support housing prices and attract more buyers to invest in investment properties. The above are three sectors that have fallen on tough times. Investors can scour through these industries to look for gems that are trading at attractive valuations. It's crucial that you keep an eye out for quality so that when the rebound does occur, you can ride the wave to better results. Looking to start investing? Our beginner's guide will show you how to make the best buying decision and make fewer mistakes. Click here to download for free now. Follow us on Facebook and Telegram for the latest investing news and analyses! Disclosure: Royston Yang owns shares of Keppel DC REIT, Micro-Mechanics, and Frasers Logistics & Commercial Trust. The post 3 Beaten-Down Sectors to Search for Bargain Stocks appeared first on The Smart Investor.
