SINGAPORE (May 30): DBS Vickers expects Frasers Centrepoint Limited (FCL) and its REITs to deliver consistent returns in the coming years, leveraging on the improved outlook of their key markets of Australia and Singapore.
As asset recycling has been a strategy that FCL employs to maintain high ROEs and deploy proceeds to projects with higher returns, DBS sees an attractive pipeline of properties that could be tapped across the group’s staple of listed REITs.
“Given where a majority of its REITs are trading, we see acquisition opportunities for both Frasers Centrepoint Trust (FCT) and says Frasers Logistics & Industrial Trust (FLT) in the immediate-medium term given stabilised assets on the sponsor’s balance sheet,” says analyst Derek Tan in a Tuesday report.
