Why invest in FCT

Ten reasons to invest in FCT units:
Reasons Description
Quality assets in excellent locations

Exposure to quality suburban malls located in Singapore.

The malls enjoy high shopper catchment from populous residential estates and proximity to public transportation such as MRT / bus interchanges.

FCT malls also enjoy stable income, sustained healthy occupancy, high shopper footfall and stable rental growth.

Transparent business model – easy to understand

FCT is a landlord that leases retail space at its shopping malls to a diversified tenant base.

Revenue is generated from rentals collected from leases, which are typically 3 years in tenure. Lease rentals generally comprise fixed base rent with built in annual rental step-ups and turnover rental (a small percentage of the tenants' turnover).

Other incomes include car park income and income from casual (short-term) leases.

Delivered consistent growth and good returns to investors

FCT delivered ten consecutive years of growth in revenue, income, net asset value and distribution per unit since its IPO.

Distribution per Unit increase from 6.55 cts in FY2007 to 11.764 cts in FY2016, representing a compounded annual growth rate (CAGR) of 6.9% over the 10 years

Solid financial position
(info @ 31 Dec 16)

Healthy gearing of only 29.7%, one of the lowest among the S-REITs

Low borrowing cost of 2.1%

Investment-grade credit rating: BBB+/Stable from S&P and Baa1/Stable from Moody's

Demonstrated growth and value creation

Completed four acquisitions (YewTee Point and Northpoint 2 in 2010; Bedok Point in 2011 and Changi City Point in 2014).

FCT delivered double-digit return on investment (ROI) and positive net value creation for all the Asset Enhancement Initiatives (AEI) it undertook for its malls (Anchorpoint, Northpoint and Causeway Point)

Attractive DPU yield and growth

FCT units offers attractive DPU yield for investors. FCT pays distribution quarterly.

FCT has achieved steady DPU growth for 10 consecutive years since its inception.

Good growth prospects

From organic rental growth and asset enhancement initiatives on its existing assets in the portfolio

Pipeline assets from Sponsor and 3rd party assets acquisition opportunities (Singapore and overseas)

Positive macro-environment factors

FCT is well-positioned in the Singapore suburban retail sector – one of the most resilient sectors through economic cycles

Low unemployment rate, growing median household income, among other factors, underpin the sector's continued growth and resilience

Experienced management team and strong corporate governance

Experienced asset management team with proven track record in retail mall management.

FCT maintained strong corporate transparency and highly proactive investor relations outreach program.

Strong and established Sponsor

Sponsor: Frasers Centrepoint Limited, a full-fledged international real estate company based in Singapore and listed on the Mainboard of the Singapore Exchange Limited.

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