The Motley Fool

Chart of the Week: Singapore REITs in Focus

With investors not holding their breath on the likelihood of any comprehensive trade deal being struck between the US and China at this weekend’s G-20 summit and signs of easing by the US Federal Reserve, defensive and income-producing stocks have found favour. In Singapore, this has meant a spate of REITs seeing strong gains this week. And one, in particular, has caught headlines; commercial REIT Frasers Commercial Trust  (SGX: ND8U), or FCOT.

It announced on 25 June that its trustee, British and Malayan Trustees Limited, had entered into a lease agreement with Google Asia Pacific that would see the tech giant lease space at FCOT’s Alexandra Technopark property. Taking up 344,100 square feet of space, Google will occupy 33.3% of the total net lettable area of the property. This was a massive boon for FCOT given it has been looking to fill space at Alexandra – its unit price popped by over 5% on Wednesday 26 June while trading volumes surged (see chart below). At its current unit price of $1.67, FCOT’s trailing 12-month distribution yield is 5.7%.

Frasers Commercial Trust unit price

Source: CapIQ as of 28 June 2019

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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 Tim Phillips owns shares in Frasers Commercial Trust.