Frasers Cpt Trust – Steady Income Growth Machine

By Richard's Investment Pad - Income Growth Planner • June 28, 2014

Within the S-REIT Realm, retail REITs are probably the most price-resilient and DPU-defensive. Besides, the organic rental growth from retail properties is a natural hedge to inflation risk. Hence, it's not surprising that retail Reits have been a staple in investor's portfolio. In fact, the very first REIT traded in Singapore, CMT, is a retail trust.

Among the retail REITs, Frasers Centrepoint Trust (FCT) is not a big brother in size. Its Market Cap is only about a fifth of CMT. It is also much smaller than Mapletree Commercial Trust, SPH Reits and Starhill Global Reits.

Unlike its peers, many of which have jewel property such as VivoCity (MCT), or shopping malls in Orchard Road(SPH, CMT, StarHill), FCT's properties are all suburban malls.

But small size also means it has potential to grow by asset acquisition. Recently, FCT has acquired Changi City Point and it has an asset ...

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