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What Do These 4 Investment Trusts Have In Common?

Editor’s note: Changes have been made to the number of properties managed by Frasers Logistics & Industrial Trust. We apologize for the error.


Investment trusts, one the most popular being the real estate investment trust (REIT), can be a useful proxy for investors who want exposure to real estate, yet do not want the hassle of managing their own properties or do not have the means to own a whole property.

There are many benefits of investing in these types of trusts, such as regular income and relatively stable demand of services.

In this article, we will look at four different trusts listed on Singapore Exchange and their similarities.

Frasers Hospitality Trust (SGX: ACV) – A global hotel and serviced residence trust with 3,534 rooms across the various properties that it manages in eight different cities around the world, including UK, Singapore, Australia, Malaysia, and Japan.

Frasers Centrepoint Trust (SGX: J69U) – A real estate investment trust focusing on retail properties. It currently manages six suburban malls in Singapore, namely Causeway Point, Northpoint, Changi City Point, Bedok Point, YewTee Point and Anchorpoint.

Frasers Commercial Trust (SGX: ND8U) – A REIT with a focus on commercial properties. Its current portfolio comprises six quality office buildings located in Singapore and Australia.

Frasers Logistics and Industrial Trust (SGX: BUOU) – This REIT is a pure-play Australian industrial portfolio. FLT currently manages 51 53 Australian industrial real estate assets concentrated within major industrial markets in Australia.

A Common Sponsor

The 4fourinvestment trusts share the same name – Frasers. In fact, all four trusts have a common sponsor, which is Frasers Centrepoint Limited (SGX: TQ5).

Frasers Centrepoint is a diversified real estate company in term of geography and also in term of its asset base, with assets across 80 different cities.

Yield at more than 5%

All the above trusts trade at prices that will yield investors a minimum of 5%.

The “lowest” of the four, Frasers Centrepoint is trading at a yield of 5.4%, followed by Frasers Commercial at 7% and Frasers Hospitality at 8.8%.

As for Frasers Logistics, the expected yield is above 6.4%, based on an expected distribution per unit of 6.37 cents.

The above trusts are all related to one company – Frasers Centrepoint Limited.

Thus, investors who are keen to explore further into any of these trusts should understand the basics of its main sponsor.

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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. Motley Fool Singapore contributor Lawrence Nga doesn’t own shares in any companies mentioned.