Asked on 19 Mar 2019
Here are just a few traits that I gathered online. I will just summarise them here so it might be easier for anyone to read!
Low Gearing Ratio: FCT currently has a lower gearing ratio at 28.6%, and a lower all-in cost of borrowing at 2.7%. This may lend FCT greater growth potential, reduce its risk profile.
Growing Distribution Per Unit (DPU): From 2009 to 2018, its DPU grew by a CAGR of 5.4%, higher than other capital land mall trust. This means that the dividends distributed is higher than before.
Rental Reversion Rate: The rate is still positive, but there seems to be a general decline over the years. This rate shows that rental income is still growing, but the growth rate is decreasing. The latest rate of 6.9% does shows an increase, which may suggest that FCT bargaining power in terms of rental is still there.
Concentration Risk: As Gabriel put, most of the rental and growth comes from Northpoint and Changi City Point. The smaller malls such as Bedok Point, have witnessed decrease in occupancy rates over the years, losing out to the nearby Bedok Mall. The good news is that these comprise a small portfolio of FCT, but the bad news is that since FCT has only 6 malls, the risk is concentrated to only the few good malls such as Changi City Point.
Fraser's Centrepoint Trust's weakening credit metrics due to the acquisition of a Prudential-linked property fund prompted Moody's review of FCT's rating for downgrade. Under the assunmption that the acquisition is 60% funded by debt, it will increase the trust's total borrowings by S$205.5 million, weakening the trust's leverage to 7.2x. FCT's cost of financing could potentially increase since most debt issuer usually rely on credit rating agency to determine the cost of funding.
Currently compiling my report that i have saved from last year for fraser centrepoint trust(j69u),hope it helps!
Good suburban malls and location.
Only issue is the concentration risk. Most of the income comes from Northpoint.