Figure 1, Source: Yahoo Finance
Frasers Property Limited’s (FPL) one-year performance of -11.5% means that it has diverged significantly from its underlying REIT holdings – Frasers Centerpoint Trust, Frasers Commerical Trust, Frasers Logistic Trust and Frasers Hospitality Trust. The strongest performer is FCT, with a one year return of 23.04% (so much for the death of retail), while FLT and FCOT, which are set to merge, returned c.10%. The only underperformer is FHT with a c.-10% return, and evidently the current virus situation isn’t helping. Refer to Figure 1 above for the performance comparison.
Figure 2, Source: Yahoo Finance
Furthermore, Frasers Property has underperformed its developer peers listed on the SGX during the past 12 months, including CapitaLand (+3%), CDL (+10%), and UOL (+10%), as seen from the chart above (Figure 2). While the local residential property market has been rather muted due to the oversupply, FPL’s peers still delivered a strong return