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Frasers Commercial Trust’s Investor Presentation: 15 Numbers for Investors to Know

Frasers Commercial Trust (SGX: ND8U) gave a presentation to investors in Taiwan on 21 February 2017.

The real estate investment trust, which owns six office and business space properties in Singapore and Australia, shared the slide deck it had used. Here are 15 numbers from the slides that can help investors understand the REIT.

A bird’s eye view

2017-02-22 Fraser Commercial Trust
Source: Frasers Commercial Trust’s investor presentation

The real estate developer and investor Frasers Centrepoint Limited (SGX: TQ5) is the sponsor for Frasers Commercial Trust.

The sponsor has a market capitalisation of S$4.7 billion (as of 31 January 2017), total assets of S$24 billion, and a presence in 26 countries and 82 cities. Frasers Centrepoint, including its subsidiaries, own about 27% of Frasers Commercial Trust’s units.

Meanwhile, Frasers Commercial Trust has a market cap of S$1 billion and total assets of around S$2 billion. The REIT was listed nearly 11 years ago on 30 March 2006.

A deeper look

2017-02-22 Fraser Commercial Trust Slide 2
Source: Frasers Commercial Trust’s investor presentation

Frasers Commercial Trust believes that it has a balanced portfolio.

To back its claim, the REIT highlighted that no single property accounts for more than 28% of its portfolio total value. From the slide just above, we can see that China Square Central and Alexandra Technopark are the largest properties for the REIT, contributing about 28% and 26%, respectively, to the portfolio’s value.

From a country perspective, Singapore accounted for around 61% of the portfolio’s total value with the remaining 39% coming from Australia.

A decade of growth

2017-02-22 Fraser Commercial Trust Slide 3
Source: Frasers Commercial Trust’s presentation

As I noted earlier, it has been more than a decade since the REIT held its IPO.

One of the key events in the REIT’s life in the stock market was the recapitalisation exercise that it undertook in 2009. As part of the exercise, Alexandra Technopark was added to Frasers Commercial Trust’s portfolio.

However, the recapitalization exercise left a mark. The REIT’s distribution per unit fell from 7.65 cents in the financial year ended 30 September 2008 (FY2008) to 2.80 cents in FY2009.

Over the last five years, Frasers Commercial Trust has recorded a total return of 147.6%. Its DPU has also grown from its low of 2.80 cents in FY2009 to an all-time high of 9.82 cents in FY2016

Like most investor presentations, Frasers Commercial 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 Commercial 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 doesn’t own shares in any companies mentioned.