Frasers Centerpoint Trust (SGX J69U)'s Tenant Sales Back to Pre-Covid Level



Frasers Centerpoint Trust (SGX: J69U) has recently announced its third-quarter 2021 financial results. It is trading at 5% dividend yield based on its last traded of $2.38 on 23 July.


Key Highlights:

  • Dividend Yield (5%)

  • Price to book ratio (5%)

  • Gearing (33.9%)

  • Portfolio Occupancy (96.4%)

  • Interest coverage ratio (5.2x)

  • Growth catalyst

Background of Frasers Centerpoint Trust

Frasers Centrepoint Trust (SGX: J69U) is the second largest retail landlord in Singapore, with a focus on suburban retail malls. Its market share increased from 5.4% to 10.2% recently, which is just slightly behind Capitaland Mall Trust’s market share of 10.6%. The REIT owns 10 suburban malls with a total portfolio worth of $6.2b.



1. Gearing


Portfolio leverage is lowered to 33.9%. The REIT still has an ample debt headroom for future acquisitions. Its average debt maturity was up 2.8 as compared to 2.3 last year.


2. Portfolio Occupancy


The portfolio remains very resilient, with an occupancy rate of 96.4%. Its Singapore and Japan portfolio remain 100% committed. Tenants’ sales have gone back to pre-Covid-19 levels despite tightened measures. Y-o-Y, Tenants sales grew 115.2% as compared to the low base during the circuit breaker last year. However, its shopper traffic (60% of its pre-Covid level) was impacted in the recent months due to the tightened measures recently.



Summary


Frasers Centerpoint Trust is one of more stable retail REIT listed in Singapore. It maintains a good track record since its IPO with strong financial positions and potential portfolio growth. It is always in our shopping list for long term holdings.



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