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2 Charts to Show Why Frasers Centrepoint Trust Is a Solid REIT

Frasers Centrepoint Trust (SGX: J69U), or FCT, is a REIT with property portfolio comprising of suburban retail properties in Singapore. Recently, I came across FCT’s latest investor presentation and found it to be highly informative. In particular, there are two simple charts that will be useful to demonstrate why FCT is a solid REIT.

Financial track record

Source: FCT’s Investor Presentation

There are a few interesting things to note here.

To start with, FCT grew its revenue and net property income (NPI) in almost every single year, with the exception of 2016 and 2017 (mainly due to asset enhancement in Northpoint City North Wing).

In the last decade, NPI has grown at a compound annual growth rate (CAGR) of 9.3%. Such a growth rate is quite impressive for a REIT, especially since NPI has more than doubled during that period.

Distribution per unit (DPU)

Source: FCT’s Investor Presentation

In addition to the impressive financial track record, FCT has also delivered significant value to investors by consistently growing its DPU.

To put the above chart into perspective, DPU has grown at a CAGR 5.9% during the last 12 years. This means that investors have benefitted significantly from the growth in the REIT’s financial performance (chart 1).

Conclusion

Overall, FCT has demonstrated strong performance in the last decade, evident from the charts above.

Yet, investors should be mindful that past record is no guarantee of future performance and should always consider future prospects before investing in any REIT.

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. The Motley Fool Singapore has recommended the stocks of Frasers Centrepoint Trust.