Frasers Property is a multinational real estate and property management company that owns, develops, and manages a property portfolio worth S$37.6 billion as at 30 September 2019. Its portfolio comprises commercial, hospitality, retail, residential, and industrial assets located in 25 countries including Singapore, China, UK, and Australia. Frasers Property is also the sponsor of four Singapore-listed REITs: Frasers Centrepoint Trust, Frasers Commercial Trust, Frasers Hospitality Trust, and Frasers Logistics & Industrial Trust. As REIT investors ourselves, I was interested to learn more about the parent company behind the Frasers family of REITs — a few of which are on our watchlist. Here are eight things I learned from the 2020 Frasers Property AGM: 1. Revenue fell 1

Frasers Logistics and Industrial Trust (FLT) announced that they will be merging with Frasers Commercial Trust (FCOT). The benefit of this deal looks rather straightforward to me, but I thought sometimes it is good to exercise some investing brain juice. If you failed to use it, you will lose it faster. This article will be rather short (hopefully). How the Acquisition Will be Done The merger will be done by FLT acquiring FCOT through a combination of issuing new FLT shares for FCOT and paying cash to FCOT shareholders. For each FCOT shares, FLT will swap 1.233 FLT shares at an issue price of S$1.24. FLT will also pay FCOT shareholders a sum of S$0.15 per share in cash. The entity will be managed by FLT’s management team. The joint entity will then a

For investors who are nearing retirement or looking to retire soon, one key characteristic they should look for in REITs is income stability. This means the REIT should have a track record of paying out a dependable and predictable distribution per unit (DPU) so as to provide investors with peace of mind and a good night’s sleep. The problem is that not every REIT makes a great investment, and investors need to be discerning when it comes to choosing a REIT they can hold on to for the long term. One factor to consider is the presence of a strong sponsor, as this can lower borrowing costs for the REIT and also provide it with a ready pipeline of properties for acquisition. You should also observe the track record of asset under management (AUM) growth and the stability of DPU over th

Since I bought Frasers Logistics and Industrial Trust (SGX: BUOU) last year at an average price of S$1.05, its units have climbed around 15%. Despite the run-up in price, I still believe it remains an attractive investment. With that in mind, here are three reasons why I intend to hold on to this industrial-focused real estate investment trust (REIT) for now. Favourable leases Frasers Logistics and Industrial Trust, which is backed by property giant Frasers Property Ltd (SGX: TQ5), boasts a solid portfolio of properties with favourable leases. As of 30 June 2019, it had 59 Australian properties and 22 European properties.  The properties in Australia have a weighted average lease expiry of six years and negotiated annual rental increment of 3.1%. 92% of its European properties a

While most investors invest in REITs to obtain a steady stream of dividend income, the fact is that REITs also grow over time, either through organic means (through asset enhancement initiatives or renovations) or through mergers and acquisitions. Acquisitions are a favoured method because it will instantly provide a boost to both asset size (and value) and usually also comes with an increase in distribution per unit (DPU). Investors need to be discerning though – not all acquisitions are beneficial for the REIT. Some assets may be sub-par, and even for quality assets, REITs may also end up over-paying for them, resulting in value destruction for existing unitholders. Investors should carefully size up the facts and figures relating to each acquisition to assess if it boosts the ove