To analyse REITS, there are a few considerations
CMT's malls are located more centrally as opposed to FCT's.
Occupancy level for FCT was approximately 90% whereas CMT's was 99.2%.
2) Dividend Yield
-- The main aim of purchasing a REIT. If we were to look at both counters,
CMT dividend yield of 4.81%
FCT dividend yield of 5.17%
Consistency-wise, one can observe that FCT is said to be more consistent in terms of it's dividend payouts. For the past 5 years, its DPS has either remained constant or increased, whereas CMT's dividend fluctuate on a wider variance over the same period of time.
3) Gearing / Leverage / Debt
This is important when assessing a REIT as REITS are majority formed up by debt which will largely affect Net Income after paying off loan interests.
CMT is made up of 35.4% liabilities
FCT is made up of 31.8% liabilities
Hence any increase in interest rate is of significant impact towards CMT than FCT.
Nonetheless, FCT is at its 52 week high whereas CMT is approximately 3% from it's 52 week high. This is not a buy/sell call so please do your additional research should you choose to make an action.
Fraser Centrepoint trust is a smaller REIT but its focus is geared towards heartland malls vis a vis Capland Mall REITs which have a higher proportion focused in the orchard belt.
So if you prefer investing in heartland malls (The mass market kind), fraser centrepoint trust will be the REIT to go to. Personally, I also prefer FCT because it has higher yield and a potential redevelopment gem in its "Causeway Point" which is set to see a larger footfall when Woodlands become an MRT interchange
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