The year 2020 was full of surprises. COVID-19 was one of them. It is depressing to describe the ordeal that many of us went through over the past year but the pandemic has fundamentally changed the way we live. Most of us are still working from home by default which makes office assets look redundant. Tourists are a rare sight nowadays as most international flights are still grounded and hotels are struggling to fill their rooms. City malls are also scrambling to bring shopper traffic back as they used to depend on office workers and tourists for footfall in the past. On the other hand, industrial properties like logistics and data centre assets have performed really well in the post-pandemic world. More people are shopping online and it has naturally led to increased demand for war

Frasers Logistics & Commercial Trust (FLCT) is a Singapore-listed real estate investment trust that owns a portfolio of 100 industrial and commercial properties across five countries – Australia, Germany, Singapore, the United Kingdom, and the Netherlands. As of 30 September 2020, its portfolio is valued at S$6.2 billion. Here are 10 things I learned from the 2021 Frasers Logistics & Commercial Trust AGM. 1. Gross revenue grew to a record S$332 million, an increase of 53.0% from $217.1 million in FY2019 and net property income (NPI) was S$258.3 million, an increase of 46.2% compared to a year ago. CEO Robert Wallace attributed FLCT’s higher top and bottom line to the merger with FCOT and strong portfolio performance across its properties that provided stability and diver

Frasers Centrepoint Trust (FCT) is a SGX-listed real estate investment trust that owns retail malls located in the suburban regions of Singapore. FCT’s portfolio of properties comprises 11 retail malls and an office building with worth approximately a total of S$6.7 billion. The retail malls are Causeway Point, Northpoint City North Wing (including Yishun 10 Retail Podium), Anchorpoint, YewTee Point, Changi City Point, Waterway Point (40% interest), Tiong Bahru Plaza, White Sands, Hougang Mall, Century Square and Tampines 1. 2020 was indeed a challenging year for REITs, with retail REITs being the worst hit sector globally as the COVID-19 pandemic brought about national lockdowns and social distancing. FCT was not spared from the crisis, as people and businesses in Singapore were

2020 was a precarious year for property owners. Globally, travel has grinded to a halt, impacting hospitality properties. Even Retail, office and industrial properties have been affected to varying degrees, given the strict COVID-19 management measures. 2020 also feels like the harbinger of the new normal – accelerating trends to an extreme level. We already knew work-from-home was on the rise, online shopping growth was outpacing sales in brick-and-mortar stores, food delivery services were taking over F&B outlets and more. For REIT owners, distribution income was affected due to various countries implementing some form of cost sharing initiatives as shutdowns and “circuit breakers” we enforced. More than that, REIT investors also have to consider the longer term impacts of COVI

Let me start 2021 off on SG TTI with something fun. On the 1st trading day of 2021, I fired off a mini proton cannon shot at 1 listed company in SGX. Long-time readers would know that prior to that, I don’t own anything on SGX. Not directly in the personal portfolio at least. (Own some shares of FCT indirectly via a holding company, that’s about it) I intend to add a little more to this position before I’m done. See if you can guess what company this is. Here’s the solitary clue: Ah. Now that I look at it, this sure is a dead giveaway. But maybe cos I know the answer… so everything looks damn obvious. LOL. Let’s see how many folks get it right. In my last post, I used the Rose of Jericho as a reference to year 2020. So what lies ahead after a ye

The massive sell-down in Mar brought many REITs to rare, multi-year lows. This re-ignited my interest in REITs, as I have been out of them for many years due to their increasing debt levels and decreasing yields. However, I passed up the opportunity while I analysed what could be the impact of COVID-19 on REITs. Despite the massive government interventions, things do not look good for retail and F&B companies. And when tenants struggle, their landlords will also suffer. In this blog post, I will examine the potential impact of COVID-19 on 2 retail companies and 2 F&B companies.Before we begin, it is good to recap what are the measures the government has taken to cushion the impact on retail and F&B companies. Wage SupportThrough 4 extraordinary budgets, the government will

It’s finally Christmas and it's the season I look forward to every year and the time for cold weather travel to ski on powder snow. Unfortunately, this time is different. I booked a few flights for travel this year and all got cancelled (including the travel bubble one). If there’s anything good in not being able to travel is that I managed to save more money. I continued investing in stocks and I am blessed that my portfolio has done well this year, particularly my Growth portfolio. Thanks to the circuit breaker, the times spent at home has allowed me to do more personal reflection, come out with an investment strategy and act on it. Despite the US stock market hitting record highs, I believe next year will still be a good year for equities market. The past few months rally is fuelled

November turns out to be a busy month with so many events happening around the world. The biggest news was that Biden won the US Presidential election, and stock market breathed a sigh of relief as Republicans likely gain the senate majority, making the prospect of Biden’s tax hike unlikely.   Also global markets gotten another boost when the news of the major development of Covid 19 broke during premarket hours, expect for tech stocks went on a steep selloff . While investors cheer for a vaccine breakthrough, my stock portfolio performance had been lukewarm at best, as many of my SG portfolio gains were offset by drop in tech stocks. Nevertheless, my portfolio is still in the green with 15.78% (XIRR) returns YTD. Whereas on the east side, Jack Ma’s blunt China’s bank talk

What You Must Know About Frasers Centrepoint Trust (SGX: J69U) Mega-Deal More about Frasers Centrepoint Trust The post What You Must Know About Frasers Centrepoint Trust (SGX: J69U) Mega-Deal appeared first on Value Invest Asia.

In March this year, I wrote about the possibility of REITs having to raise capital through rights issues if Covid-19 were to cause severe declines in asset valuations (What Happened to REITs during the GFC?). Eight months on, this has not occurred, and although I believe that the likelihood of this has diminished, we cannot completely ignore it. In October, I initiated a position in Capitaland Mall Trust (CMT) at a price of $1.91, which has now merged with Capitaland Commercial Trust (CCT) to form Capitaland Integrated Commercial Trust (CICT). As a shareholder, I was curious to assess the likelihood of CICT having to raise capital through a rights issue, by analysing its gearing ratio and asset valuations. I have not ran the numbers to determine the gearing ratio of the merged entity, alt

Retail REITs in Singapore have rebounded since Phase 2 in Singapore began. In this article, we will be covering 5 predominantly retail REITs in Singapore, namely Capitaland Integrated Commercial Trust, Frasers Centrepoint Trust, SPH Reit, Starhill Global REIT and Lendlease Global Commercial REIT, comparing their portfolio information, financial ratios, etc. REIT Portfolio Overview Capitaland Mall Trust recently merged with Capitaland Commercial Trust, to form Capitaland Integrated Commercial Trust. Owning 5 Retail/Office, 8 Office and 11 Retail Developments, wholly in Singapore, CICT is the largest market capitalisation trust in Singapore. Frasers Centrepoint Trust owns 7 Retail Malls in Singapore, including the newly-renovated Northpoint City. Mostly located away from the d

Lendlease Global Commercial REIT announced its Q1 FY2021 business update this morning which I will quickly go through below.As some of you might already know from my previous update, Lendlease REIT remains one of my biggest portfolio holdings and I am cautiously confident it will continue to become a good investment for the mid to longer term.I have also summarized the previous Lendlease Q&A on my Facebook page which you can find here.Q1 FY2021 Business Update:The First Quarter ("1 Jul 2020 to 30 Sep 2020") business update released did not provide much information on the financial numbers (yet), but we can infer and take reference from the operational update given.During Q1, tenant sales and footfall visitors at 313@Somerset continue to show signs of recovery as we all expected since t

 On 28th Sep 2020 Frasers Centrepoint Trust announced another equity fund raising to raise approximately S$1.33 billion to part-finance the acquisition of the remaining 63.1% stake in PGIM Asia Retail Fund.  The equity fund raising comprised on a private placement at $2.35 per unit thereby raising S$575 million.  A preferential offering for existing unitholder of 290 unit for every 1000 unit at an issue price of S$2.34 raising S$759 million.  As an unitholder since 2016, I was eligible for the preferential offering.  So is it a no brainer and just jump in to take up the offer ?Unfortunately, the answer is NO.  I did a check as in May 2019, they also did an equity fund raising of private placement and preferential offering to raise S$421 million to acquire a 33

Let's do a quick update on my SRS portfolio.Dividends from UOB BankUOB Bank paid out $975 of dividends on 13 Oct 2020 and that brings the total dividends received to-date to $6,783.Acquired 20,000 of Frasers Centrepoint TrustThe sale of Lendlease Global at 69.5 cents on 6 Oct seemed timely as it closed at 67 cents yesterday.  I will review whether I want to reinvest in this counter at a later

Frasers Centrepoint Trust (SGX:J69U) (FCT) unitholders take note – there is a Preferential Offering ongoing ... Read more >> The post Frasers Centrepoint Trust Preferential Offering - A no brainer deal for me first appeared on https://www.drwealth.com.

Frasers Centrepoint Trust (FCT) is a Singapore REIT that currently owns a portfolio of six suburban malls located in Singapore. On 3 September 2020, FCT announced its intention to acquire the remaining 63.1% stake in AsiaRetail Fund (ARF) for $S1.06 billion. The acquisition will add five Singapore suburban malls – Tiong Bahru Plaza, Hougang Mall, White Sands, Tampines 1, and Century Square – and one Singapore office property, Central Plaza. The deal was approved by FCT unitholders at an extraordinary general meeting where CEO Richard Ng gave a presentation highlighting the benefits of the acquisition despite the backdrop of COVID-19. Will Singapore malls continue to thrive despite the impact of the pandemic and e-commerce? Here are five things I learned from the 2020 Frasers Cen

 Quick notes on 3 HK property cos:Link REIT  - Yield 4.55% (at HKD 63, year ending March 2020 results), 100% payout ratio, mostly 50 year property leases  - Neighbourhood shopping centers, a bit like FCT in Sg.  Largely unaffected by economy/covid.  - Good LT track record growing assets without raising cash from shareholders, but yield too low for me, esp with 100% payout ratio.Wharf REIC:  - Yield 6.3% (at HKD 32.10, end Dec 2019 results), only 50% of CFO paid out, mostly freehold property.   - 75% operating profit from one mall: Harbour City.  Overall high exposure to luxury/tourism: 81% rental from leather, fashion or jewellery.   - Luxury brands are reducing their footprint in HK: eg: LV closing their Times Square store after Wharf

Global stock markets (S&P500, STI, KLCI, HSI, SSEC, etc) have been bumpy over the past few months. US Covid-19 condition is still critical, affecting the confidence of V-shape recovery of stock market, as well as the coming US presidential election in Nov 2020. Some investors worry of possible double dip, dare not take any action now. Crisis is always opportunity but an investor has to apply the right stock investing strategy.At the same time, Singapore stock market is lagging, major bank stocks, DBS Bank (SGX: D05), OCBC Bank (SGX: O39), UOB Bank (SGX: U11) are under correction after MAS guidelines to cap the dividend payment of banks to 60% of last year (implying if dividend yield is 6%, would become 6×0.6 = 3.6%), disappointing many passive income investors. However, the

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