Folkestone Education Trust (FET) is a REIT that owns a portfolio of over 350 childcare centres around Australia

Tim Hannon

Newgate Capital Partners

Folkestone Education Trust (FET) is a REIT that owns a portfolio of over 350 childcare centres around Australia. We like the stock given its low risk earnings stream, long lease expiry profile, ability to develop assets on balance sheet and the opportunity for value creating acquisitions. The recent proposed merger with Folkestone Social Infrastructure Trust will add a further 47 childcare centres to the portfolio, deliver mild distribution accretion and see the FET market capitalisation lift to ~ $500 million, which should deliver a modest liquidity rerate. At current prices FET is delivering an attractive 2015 distribution yield of ~ 6.9% and should be able to deliver distribution growth at least at inflation over the medium to long term. Disclosure: Freehold owns FET across portfolios

Tim Hannon
Tim Hannon
Newgate Capital Partners

Tim has 22 years’ experience in the investment and securities markets. Tim was a partner of Goldman Sachs JBWere and during his 15-year tenure at the firm had senior experience across all areas of equities investing. Tim was Head of Australian...


No areas of expertise

I would like to

Only to be used for sending genuine email enquiries to the Contributor. Livewire Markets Pty Ltd reserves its right to take any legal or other appropriate action in relation to misuse of this service.

Personal Information Collection Statement
Your personal information will be passed to the Contributor and/or its authorised service provider to assist the Contributor to contact you about your investment enquiry. They are required not to use your information for any other purpose. Our privacy policy explains how we store personal information and how you may access, correct or complain about the handling of personal information.


Sign In or Join Free to comment