$FRASERS CENTREPOINT TRUST(J69U.SI)$

Frasers Centrepoint Trust (FCT) had established a strong track record of delivering positive distribution per unit (DPU) growth every year since its listing in Jul 2006 to FY19. However, this impressive track record was broken in FY20 given unprecedented measures introduced by the Singapore government to tackle the Covid-19 pandemic, such as mandatory rental relief to tenants. FY21 saw a firm rebound in DPU back to FY19 levels, which i believe can be attributed to FCT’s portfolio of suburban malls in Singapore which are relatively more defensive and resilient in nature given their dominant positions in their respective catchment areas. Looking ahead, i expect FCT to largely benefit from Singapore’s reopening drive, although more Singaporeans travelling overseas due to pent-up demand could also dampen shopper traffic to its malls, especially during the upcoming and Jun and Dec holiday periods. 

@TigerStars

DYODD