Category: FCOT

Buy @ $1.43

Private Placement units @ $1.48 started trading yesterday… Would have preferred to do my buy back at <$1.40 but just can’t resist buying some first at a discount to their price… 😀

Sell @ $1.52

Only partially done… 😀

Private Placement @ $1.48, Advanced DPU = 0.8ct.  Some Math,

Tgt Price = $1.48 + 2.4ct (DPU) + 0.8ct = $1.512

ie To be better off than placee, sell above tgt price and buy below tgt price.

Sell @ $1.54

Q118 (Dec-17) Results were released last night. DPU = 2.4ct vs 2.407ct QoQ vs  2.5055ct YoY.  A larger Capital component was observed from the DPU breakdown, providing a useful cushion to any DPU decline. NAV = $1.55.

As per my expectation, ATP (Alexandra Techno Park) occupancy dropped to ~80%  due to HP lease expiry,  impacting NPI significantly.

Altho’ FCOT continues to have the highest Yield amongst it’s asset class, I have decided to continue to sell. DPU will likely continue to decline, till the void left by HP is filled. It’ll likely be cushioned by the new UK acquisition, which is Yield Accretive, plus an increased Capital component.  Worst case, we may only see better earnings when the Hotel project and AEI at China Square is completed in mid-19. I’ll be using NAV = $1.55 as a reference to Buy / Sell.

Sell @ $1.53

Continue to sell with every rise… Mkt must be bullish on their proposed acquisition of a Biz Park in UK, expected to completed by end-Jan… There’ll be an Equity Fund Raising, likely to be Rights Issue (hopefully not Private Placement)… 😀

Sell @ $1.50

Almost hitting my initial Buy Price of $1.5133 in Jul-15… 😀

Sell @ $1.47

Getting closer to NAV $1.58 with every rise… Will run out of stocks before that if I continue to sell… 😀

Sell @ $1.42

Comtinue to slowly reduce with strength. Last day for DRP.

Sell @ $1.415

Extract of SGX Annc on 3-Nov on HPS short term lease renewal for 304,920 sqft expiring on 30-Nov-17,

HPS has committed to extend the lease in respect of an aggregate of 266,905 sf of space, as
follows:

i. 93,195 sf for thirteen months commencing from 1 December 2017;
ii. 42,561 sf for five months commencing from 1 December 2017; and
iii. 131,149 sf for between two to three months commencing from 1 December 2017;

based on terms which are substantially similar to those in the existing lease.

Mkt seems cheered by this annc. DPU will likely still be impacted negatively in the coming Qs but it does give FCOT more time to look for new tenants and the drop in DPU will be less abrupt (unless supported by higher Capital Payouts fm the Hotel site).

Decided to sell more first.

Sell @ $1.425

Last day of cd. Sell a bit more. Will continue to sell into strength afte it xd, but, will also buy buy on declines. Will watch closely as it approaches end-Nov when HPS lease expires. Take note HPE non-renewal announcement was released on 22-Sep, with first expiry on 30-Sep.

Sell @ $1.425

Seeing revenue decline at most assets for E-Sep Q.

My main concern is the HPS lease which expires on 30-Nov at Alexandra TechnoPark, which accounts for 11.1% of Gross Rental Income or 304.9ksf. An earlier HPE lease expired on 30-Sep & 30-Nov accounted for 6.6% of Gross Rental Income but they have secured  61/178.8 ksf committments.

I see a high probability of DPU decline for next 2-3 Qs, unless supported by higher Capital Returns from the Hotel site lease.