Monday, June 23, 2014


Short Summary:
FHT is a hospitality stapled group comprising FH-REIT and FH-BT. FH-REIT is a Singapore-based real estate investment trust (“REIT”) established with the principal investment strategy of investing on a long-term basis, directly or indirectly, in a diversified portfolio of income-producing real estate located anywhere in the world except Thailand, which is used primarily for hospitality and/or hospitality-related purposes, whether wholly or partially, as well as real estate-related assets in connection to the foregoing. This includes hotels, serviced residences, resorts and other lodging facilities, whether in existence by themselves as a whole or as part of larger mixed-use developments, and the term “serviced residences” means apartments with full or partial services.

The initial portfolio consists of the following:

The Deal:
Offering Price: S$0.88
The Offering: 182,099,000 Shares (Include 45,454,000 Offering Shares to Singapore Public)
Cornerstone Investors:
509,915,000 (43%) TCC Hospitality
260,887,000 (22%) Frasers Centrepoint Limited
56,818,000 (4.8%) Wealthy Fountains Holdings Inc
Forecast Dividend Yield:
2014: 3.05%
2015: 6.27%
*Based on issue price of $0.88, 1,185,850,000 units after IPO.
Dividend Policy:
Distributions from FHT comprise distributions from FH-REIT and FH-BT. FH-REIT’s distribution policy is to distribute 100.0% of FHREIT’s Distributable Income for the Forecast Period 2014 and Projection Year 2015 and at least 90.0% of its Distributable Income thereafter. The distribution will be made on a semiannual basis for the six-month periods ending 31 March, and 30 September. Distributions, when paid, will be in Singapore dollars. FH-BT will be dormant as at the Listing Date and no distributions will be made during the period that FH-BT remains dormant. It is assumed that FH-BT will have no revenue for the Forecast Period 2014 and Projection Year 2015. In the event that FH-BT becomes active and profitable, FH-BT’s distribution policy will be to distribute as much of its income as practicable, and the declaration and payment of distributions by FH-BT will be at the sole discretion of the Trustee-Manager Board. There is no assurance that FH-BT would make any distributions to Stapled Security holders.

- Exposure to the first SGX-ST listed global hotel and serviced residence stapled group with diversified portfolio across Asia, Australia and the United Kingdom
- Positioned to benefit from favourable demand drivers that will boost the hospitality sector of the various jurisdictions (Example: Singapore F1)
- Committed and reputable Sponsor with strong network and branding
- Well-positioned to capitalise on growth opportunities
- Experienced board and management team with proven track record
- Downside protection through Master Lease and Tenancy Agreements and Sponsor’s Corporate Guarantee, with potential to benefit from future rental growth

Business Strategies and Future Plans

Potential Audition pipeline as below:

- The loss of a Master Lessee or Tenant, a down-turn in the business of a Master Lessee or Tenant or any breach by a Master Lessee or Tenant or the Corporate Guarantors of their respective obligations under the relevant Master Lease and Tenancy Agreement and the Corporate Guarantee could have an adverse effect on the financial condition, results of operations and prospects of FHT.
- There is no assurance that the level of Distributable Income attributable to InterContinental Singapore and Fraser Suites Singapore can be sustained at the forecast and projected levels once the payment top-up arrangement entered into (in respect of InterContinental Singapore) with the vendor and (in respect of Fraser Suites Singapore) with River Valley Apartments Pte Ltd expires.
- Renovation work, repair and maintenance or physical damage to the Properties may disrupt FH-REIT’s operations.
- FHT may be involved in disputes arising from boundary disputes which may result in costs and require payments.
- FHT may be required by relevant authorities to demolish certain wooden balconies at the rear of Best Western Cromwell London.
- Acts of God, wars, terrorist attacks, riots, civil commotions, widespread communicable diseases (such as the human avian flu and severe acute respiratory syndrome (“SARS”)) and other events beyond the control of FHT may adversely affect the business, financial condition, results of operations and prospects of FHT.
- High gearing of 40.98%

Finally, after a long hiatus, there is an IPO in Singapore market! Personally, I do not really like REITS that is hospitality in nature as they really depend on customers which can easily be affected by environmental events. The recent SARS and political turmoil perfectly taught us well just how easy a country's tourism industry can collapse. Need more example? Take a look at Greece and Thailand! As soon as people sense something amiss, they will stay away. Although their property are situated in countries such as Singapore, Malaysia, England and Australia, but still, anything can happen. Further more, I do not really like the idea that there is a vendor top-up component that sweetens the deal. What will happen when the top up period expires? The yield will not be as good as before, isn't it? In addition, if you take a look at the prospectus, there is a potential that FHT will need to fork out more money due to some land rights and permits issue with some of their property. All in all, I will give this a miss.

Some useful information:
[01 Jul 2014], [9.00 a.m.] : Opening date and time for the Public Offer.
[10 Jul 2014], [12,00 noon] : Closing date and time for the Public Offer.
[11 Jul 2014]: Balloting of applications under the Public Offer, if necessary.
[14 Jul 2014], [2,00 p.m.]: Commence trading on a “ready” basis.
Rating for investment: 3.0/10

Disclaimer: You may use the above information as a guide, but please invest based on your own judgment.

Wednesday, June 11, 2014


Synopsis: From Disney comes “Maleficent”—the untold story of Disney’s most iconic villain from the 1959 classic “Sleeping Beauty.” A beautiful, pure-hearted young woman, Maleficent has an idyllic life growing up in a peaceable forest kingdom, until one day when an invading army threatens the harmony of the land. Maleficent rises to be the land’s fiercest protector, but she ultimately suffers a ruthless betrayal—an act that begins to turn her pure heart to stone. Bent on revenge, Maleficent faces an epic battle with the invading king’s successor and, as a result, places a curse upon his newborn infant Aurora. As the child grows, Maleficent realizes that Aurora holds the key to peace in the kingdom—and perhaps to Maleficent’s true happiness as well. [Source: Cathay Cineplexes]

The original Sleeping Beauty story re-told, which cast the witch, which is now termed "fairy Godmother" in a rather good light. Interesting storyline talking about the betrayal of human for their own greed and ultimately turning the witch into who she is. Overall, Angelina Jolie put up a rather good show casting as the which, especially her high cheek bone which further protrude the evil and menacing feature of her character. A good show to catch for the weekend.
Rate: 8/10

Monday, June 09, 2014

X-Men: Days of Future Past

Synopsis: The ultimate X-Men ensemble fights a war for the survival of the species across two time periods in X-MEN: DAYS OF FUTURE PAST. The beloved characters from the original “X-Men” film trilogy join forces with their younger selves from “X-Men: First Class,” in an epic battle that must change the past – to save our future. [Source: Cathay Cineplexes]

It is kind of weird to see Magneto and Professor X working side by side during the opening to fight together for the mutants survival, but with this movie, history will be re-written altogether. With the usual Marvel's movie, viewers are guaranteed lots of fighting and special effects. Length of the movie is good too, not to short and not too long. Do stay till the after credits to have a preview clip on the next X-men villain. Overall, a good movie to catch at the cinema.
Rate: 7/10