Frasers Centrepoint Trust (FCT)

Frasers Property: Asset recycling, restructuring for greater liquidity the key catalysts for this developer

SINGAPORE (Jan 17): Frasers Property (FPL) – which gained just 3.68% last year – underperformed its peers City Developments (+42%), UOL Group (+37.5%) and CapitaLand (+26.2%), excluding dividends. Since the start of this year, CapitaLand is up a further 5%.

By all accounts, FPL is undervalued. At a closing price of $1.72 as at Jan 14, it is trading at a P/B of 0.67 times, lower than CDL’s one times price to book, CapitaLand’s 0.87 times and UOL’s 0.72 times.


DBS favours REITs, yield stocks with growth prospects amid 'less cloudy' outlook

DBS favours REITs, yield stocks with growth prospects amid 'less cloudy' outlook

SINGAPORE (Dec 18): Against an outlook that is “turning less cloudy”, DBS Group Research has advised investors to adopt a “barbell approach” to strike a balanced risk-reward.

In particular, the research house says it favours real estate investment trusts (REITs) and yield stocks with growth potential, given the anticipated rise at the long end of the yield curve.

Its top picks are Ascendas REIT, Mapletree Logistics Trust, Mapletree Industrial Trust, Keppel DC REIT, Suntec REIT, Frasers Centrepoint Trust and Ascendas India Trust.

Brewing liquidity

SINGAPORE (Dec 9): On Dec 2, during a media briefing, Robert Wallace, CEO of Frasers Logistics & Industrial Trust (FLT), said one of the benefits of merging with Frasers Commercial Trust (FCOT) was that the joint real estate investment trust (REIT) would have a larger free-float market cap and account for a larger weightage in important indices.


REITs have had a good run, yield compression may have come to an end

(Nov 18): Yields on 10-year Singapore Government Securities have been rising, albeit gently from a low base (see Chart 1). Similarly, yields on 10-year US Treasuries are also rising, from a low of 1.4% in September to 1.945% as at Nov 11 (see Chart 2). On Oct 30, the US Federal Reserve, through a statement by the Federal Open Market Committee, announced a 25-basis-point cut in the Fed funds rate to 1.5% to 1.75%.


OCBC keeps 'hold' call as Frasers Centrepoint Trust records 13th straight year of DPU increase

SINGAPORE (Oct 24): OCBC Investment Research is maintaining its “hold” call on Frasers Centrepoint Trust, with a higher target price of $2.75, some 2.2% higher than the previous target price of $2.69. 

On the whole, Frasers Centrepoint Trust (FCT) appeared to have had a solid 4Q19. 

On Wednesday, the REIT’s manager reported a distribution per unit (DPU) of 2.913 cents for the quarter, a 1.8% increase from a year ago. This translated to a full-year DPU of 12.07 cents, up 0.5% from FY18. 

Frasers Centrepoint Trust posts 1.8% increase in 4Q DPU to 2.913 cents

SINGAPORE (Oct 23): The manager of Frasers Centrepoint Trust (FCT) has announced distribution per unit (DPU) of 2.913 cents for the 4Q19 ended September, some 1.8% higher than DPU of 2.862 cents a year ago.

This brings full-year DPU for FY19 to 12.07 cents, edging up 0.5% from FY18 DPU of 12.015 cents.

In 4Q19, distributable income jumped 17.9% to $30.4 million, despite a dip in gross revenue and net property income.

Frasers Centrepoint Trust kept at 'buy' by DBS as it tightens its grip on PGIM

SINGAPORE (Oct 2): Frasers Centrepoint Trust (FCT) on Sept 30 increased its stake in PGIM Real Estate Asiaretail Fund Limited to 24.82% from 21.13% previously.

Meanwhile, Frasers Property Limited (FPL) has also increased its stake in the fund to 63.11% from 53.7%.

This brings the total combined ownership of FCT and FPL to 87.93%.

The increase in stake was due to a redemption of 69,714 shares by the fund.

Following this, DBS Group Research is keeping its “buy” call on FCT with a target price of $2.95.

Frasers Centrepoint Trust to be part of FTSE EPRA/NAREIT Global Developed Index from Sept 23

SINGAPORE (Sept 5): Frasers Centrepoint Trust (FCT) will be included in the FTSE EPRA/NAREIT Global Real Estate Index Series (Global Developed Index) from Sept 23.

The FTSE EPRA / NAREIT Global Real Estate Index Series is an international real estate investment index developed by FTSE Group in cooperation with the European Public Real Estate Association (EPRA) and the National Association of Real Estate Investment Trusts (NAREIT).

Frasers Centrepoint Trust poised for re-rating as it enters next phase of growth

SINGAPORE (Sept 3): Units in Frasers Centrepoint Trust (FCT) have already surged more than 26% so far this year. But market watchers remain bullish on the retail REIT as it stands on the cusp of a re-rating.

For the latest 3Q19 ended June, FCT saw its income available for distribution rise 12.4% to $31.8 million, even as net property income dipped 1.1% to $34.6 million on the back of higher property expenses.

The higher expense arose from the absence of property tax refund which occurred in the same period a year ago.

FCT preferred for its resilient malls, strategic diversification and index inclusion plans

SINGAPORE (July 29): Frasers Centrepoint Trust (FCT) delivered a strong set of results in 3Q19, despite seeing a dip in DPU due to an enlarged unit base.

See: Frasers Centrepoint Trust 3Q19 DPU falls 1.7% to 3 cents

The 3Q19 results were supported by strong operational metrics, reflecting broad-based occupancy improvements and tenants’ sales growth.

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