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3 Key Things to Learn About Frasers Centrepoint Trust

Frasers Centrepoint Trust (SGX: J69U) posted an updated copy of its investor presentation recently.

As a brief background, 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.

It’s been around for a decade

Frasers Centrepoint Trust had its initial public offering (IPO) in 2006. At its listing, it had a market capitalisation of S$2.0 billion. With the help of acquisitions along the way, the value of its underlying properties have grown since its IPO.

2016-11-16-fraser-centrepoint-trust-asset-value

Source: Frasers Centrepoint Trust’s presentation

As you can see, its portfolio of six retail malls is valued at $2.51 billion as of 30 September 2016.   

Location, location, location

Having six retail malls is one thing, but having the properties located in high traffic areas is even better.  

2016-11-16-fraser-centrepoint-trust

Source: Frasers Centrepoint Trust’s presentation

Frasers Centrepoint Trust’s properties are mostly located at mass rail transit (MRT) stations and bus interchanges. For instance, Causeway Point is located at the Woodlands MRT station while Northpoint is located at Yishun MRT station.

Transport interchanges tend to be high traffic areas which can provide shoppers for its malls.

Size matters

2016-10-28-frasers-centrepoint-trust-properties

Source: Frasers Centrepoint Trust’s presentation

This slide highlights the importance of the three malls to Fraser Centrepoint Trust’s overall results.

As mentioned before, Frasers Centrepoint Trust has six properties. But some malls are more important than others. For the REIT, Causeway Point , Northpoint and Changi City Point represent a whopping 85% of the REIT’s net property income (NPI). These are also the biggest malls in its portfolio. 

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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.