3 Must-See Slides from Frasers Centrepoint Trust’s Latest Investor Presentation

Yesterday evening, Frasers Centrepoint Trust (SGX: J69U) posted a deck of slides that it would be using for an investor presentation today.

The real estate investment trust (REIT) has ownership stakes in six sub-urban shopping malls located in Singapore. It also holds a 31.2% stake in the Malaysia-listed Hektar Real Estate Investment Trust (H-REIT).

There were three slides that caught my eye.

Location, location, location

Source: Frasers Centrepoint Trust’s presentation

As mentioned earlier, Frasers Centrepoint Trust has six properties. But there are three that drives most of its results, namely, Causeway PointNorthpoint, and Changi City Point. Together, the trio account for a whopping 85% of the REIT’s net property income (NPI).

The REIT also pointed out in the slide deck that all six properties are located next to or near a Mass Rapid Transit (MRT) station or bus interchange.

Rising distributions

Source: Frasers Centrepoint Trust’s presentation

Frasers Centrepoint Trust has put together a strong track record of rising distributions per unit (DPU) over its past 10 fiscal years. The compound annual growth rate (CAGR) of the DPU is around 6.9%.

The debt situation

Frasers Centrepoint Trust, in a similar manner to all REITs, comes with debt. Its gearing level over its past 10 fiscal years is summarised below:

Source: Frasers Centrepoint Trust’s presentation

The REIT has kept its gearing level below 30% for the most part since 30 September 2007. As of 30 September 2016, Frasers Centrepoint Trust has a gearing of 28.3%, which is some ways below the regulatory gearing limit of 45% that REITs can maintain in Singapore.

Like most investor presentations, Frasers Centrepoint Trust will be attempting to put its best foot forward in presenting itself to investors. The slides above are a representation of the REIT manager’s efforts to provide its perspective on Frasers Centrepoint Trust.

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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 Chin Hui Leong owns units in Frasers Centrepoint Trust.