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3 Important Things That Investors Should Know About Fraser Centrepoint Limited

Frasers Centrepoint Limited (SGX: TQ5) is a fully-fledged international real estate company with three strategic business units, namely – Singapore, Australia and Hospitality, that focus on residential, commercial, retail and industrial properties in Singapore and Australia, and the hospitality business spanning more than 80 cities.

Investors or potential investors in this company might like to know three things about the company.

Diversified nature of the business

Frasers Centrepoint’s income is widely diversified across a few countries. A simple chart from 2015 annual report will illustrate this:

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Moreover, the company is also diversified across business activities, including property development, commercial property and hospitality and others.

This gives the company a better chance to withstand the different challenges across the segments.

Shareholder base

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Source from 2015 annual report

From the above, we can see that Fraser Centrepoint is majority owned by Charoen Sirivadhanabhakdi and his spouse, Khunying Wanna Sirivadhanabhakd.

Thus, it is important for investors to understand the long-term interest of the two major shareholders.

Growth in total asset

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Source from annual report 2015

The company’s asset have been growing in the last 10 years. It has expanded at a compounded rate of 15.8% during that period.

Growth in asset is important for a business model like Fraser Centrepoint, which continuously “recycles” mature assets into REITs, which then allows it to use the proceeds to invest in new assets.

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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.