SGX:J69U

Stock Analysis Report

Frasers Centrepoint Trust

Executive Summary

Frasers Centrepoint Trust (“FCT”) is a leading developer-sponsored retail real estate investment trust (REIT).

Rewards

Trading at 3.9% below its fair value

Earnings grew by 23.5% over the past year

Pays a high and reliable dividend of 4.39%

Risk Analysis

Earnings are forecast to decline by an average of -11.5% per year for the next 3 years

Large one-off items impacting financial results

Shareholders have been diluted in the past year



Snowflake Analysis

Established dividend payer with proven track record.


Similar Companies

Share Price & News

How has Frasers Centrepoint Trust's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: J69U has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0.4%

J69U

0.5%

SG REITs

-0.1%

SG Market


1 Year Return

26.7%

J69U

17.9%

SG REITs

3.3%

SG Market

Return vs Industry: J69U exceeded the SG REITs industry which returned 17.9% over the past year.

Return vs Market: J69U exceeded the SG Market which returned 3.3% over the past year.


Shareholder returns

J69UIndustryMarket
7 Day0.4%0.5%-0.1%
30 Day5.0%2.1%-1.5%
90 Day1.5%0.3%1.3%
1 Year33.1%26.7%25.2%17.9%7.5%3.3%
3 Year67.9%43.2%49.9%23.6%16.2%3.7%
5 Year91.3%45.5%60.0%15.4%13.3%-5.8%

Price Volatility Vs. Market

How volatile is Frasers Centrepoint Trust's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Frasers Centrepoint Trust undervalued compared to its fair value and its price relative to the market?

3.9%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: J69U (SGD2.75) is trading below our estimate of fair value (SGD2.86)

Significantly Below Fair Value: J69U is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: J69U is good value based on its PE Ratio (13.2x) compared to the REITs industry average (14.6x).

PE vs Market: J69U is poor value based on its PE Ratio (13.2x) compared to the SG market (13.2x).


Price to Earnings Growth Ratio

PEG Ratio: J69U's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: J69U is overvalued based on its PB Ratio (1.2x) compared to the SG REITs industry average (1x).


Next Steps

Future Growth

How is Frasers Centrepoint Trust forecast to perform in the next 1 to 3 years based on estimates from 17 analysts?

-11.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: J69U's earnings are forecast to decline over the next 3 years (-11.5% per year).

Earnings vs Market: J69U's earnings are forecast to decline over the next 3 years (-11.5% per year).

High Growth Earnings: J69U's earnings are forecast to decline over the next 3 years.

Revenue vs Market: J69U's revenue (0.4% per year) is forecast to grow slower than the SG market (5.5% per year).

High Growth Revenue: J69U's revenue (0.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: J69U's Return on Equity is forecast to be low in 3 years time (5.9%).


Next Steps

Past Performance

How has Frasers Centrepoint Trust performed over the past 5 years?

2.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: J69U has a large one-off gain of SGD94.5M impacting its September 30 2019 financial results.

Growing Profit Margin: J69U's current net profit margins (97%) are higher than last year (84.3%).


Past Earnings Growth Analysis

Earnings Trend: J69U's earnings have grown by 2.6% per year over the past 5 years.

Accelerating Growth: J69U's earnings growth over the past year (23.5%) exceeds its 5-year average (2.6% per year).

Earnings vs Industry: J69U earnings growth over the past year (23.5%) exceeded the REITs industry 4.6%.


Return on Equity

High ROE: J69U's Return on Equity (8.3%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Frasers Centrepoint Trust's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: J69U has a high level of physical assets or inventory.

Debt Coverage by Assets: J69U's debt is not covered by short term assets (assets are 0x debt).


Financial Institutions Analysis

Asset Level: J69U's level of assets compared to its equity is low.

Allowance for Bad Loans: Insufficient data to determine if J69U has a sufficient allowance for bad loans.

Low Risk Liabilities: J69U reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if J69U has an acceptable proportion of non-loan assets held.

Low Risk Deposits: J69U has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if J69U has an appropriate level of bad loans.


Next Steps

Dividend

What is Frasers Centrepoint Trust's current dividend yield, its reliability and sustainability?

4.39%

Current Dividend Yield


Dividend Yield vs Market

company4.4%marketbottom25%2.5%markettop25%5.4%industryaverage5.3%forecastin3Years4.8%

Current dividend yield vs market & industry

Notable Dividend: J69U's dividend (4.39%) is higher than the bottom 25% of dividend payers in the SG market (2.52%).

High Dividend: J69U's dividend (4.39%) is low compared to the top 25% of dividend payers in the SG market (5.44%).


Stability and Growth of Payments

Stable Dividend: J69U's dividends per share have been stable in the past 10 years.

Growing Dividend: J69U's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (86.9%), J69U's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: J69U's dividends in 3 years are forecast to be thoroughly covered by earnings (0.1% payout ratio).


Next Steps

Management

What is the CEO of Frasers Centrepoint Trust's salary, the management and board of directors tenure and is there insider trading?

3.0yrs

Average management tenure


CEO

Richard Ng 0

0.9yrs

Tenure

0

Mr. Richard Ng has been Chief Executive Officer of Frasers Centrepoint Asset Management Ltd. since July 1, 2019. 


Management Age and Tenure

3.0yrs

Average Tenure

Experienced Management: J69U's management team is considered experienced (3 years average tenure).


Board Age and Tenure

2.8yrs

Average Tenure

59yo

Average Age

Experienced Board: J69U's board of directors are not considered experienced ( 2.8 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyS$268,00007 Nov 19
Schroder Investment Management Limited
EntityCompany
Shares100,000
Max PriceS$2.68
BuyS$3,058,86318 Jun 19
Frasers Centrepoint Asset Management Ltd.
EntityCompany
Shares1,301,644
Max PriceS$2.35
BuyS$4,287,59930 May 19
Schroder Investment Management Limited
EntityCompany
Shares1,800,000
Max PriceS$2.38
BuyS$1,885,85715 Mar 19
Schroder Investment Management Limited
EntityCompany
Shares836,300
Max PriceS$2.26

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 7%.


Management Team

  • Fung Leng Chen

    Vice President of Investor Relations - Frasers Centrepoint Asset Management Ltd.

    • Tenure: 0yrs
  • Hwee Pio Tay (50yo)

    Chief Financial Officer of Frasers Centrepoint Asset Management Ltd.

    • Tenure: 7.6yrs
  • Catherine Yeo

    Company Secretary of Frasers Centrepoint Asset Management Ltd.

    • Tenure: 3.2yrs
  • Molly Lim

    SVP & Head of Retail Prop. of Frasers Property Singapore - Frasers Property Mgmt. Svcs. Pte Ltd.

    • Tenure: 0yrs
  • Jill Ng

    VP and Head of Strat. Mktg.

    • Tenure: 0yrs
  • San San See

    Head of Leasing of Frasers Centrepoint Asset Management Ltd.

    • Tenure: 0yrs
  • Stephanie Ho

    General Manager of Retail Properties - Frasers Centrepoint Asset Management Ltd.

    • Tenure: 2.9yrs
  • Chai Hong Foo

    VP & Head of Leasing of Frasers Property Singapore - Frasers Property Management Services Pte Ltd.

    • Tenure: 0yrs
  • Rene Lee

    Vice President of Investment - Frasers Centrepoint Asset Management Ltd.

    • Tenure: 0yrs
  • Richard Ng

    Chief Executive Officer of Frasers Centrepoint Asset Management Ltd

    • Tenure: 0.9yrs

Board Members

  • Choong Kong Cheong (78yo)

    Independent Chairman of Frasers Centrepoint Asset Management Ltd

    • Tenure: 1.8yrs
    • Compensation: S$113.75k
  • Philip Eng (73yo)

    Non-Executive Non-Independent Director of Frasers Centrepoint Asset Management Ltd.

    • Tenure: 13.7yrs
    • Compensation: S$98.75k
  • Christopher Tang (58yo)

    Non-Executive Non-Independent Director of Frasers Centrepoint Asset Management Ltd.

    • Tenure: 13.9yrs
    • Compensation: S$58.50k
  • Simon Ho (58yo)

    Non-Executive & Non-Independent Director of Frasers Centrepoint Asset Management Ltd.

    • Tenure: 2.8yrs
    • Compensation: S$110.50k
  • Chai Seng Ho (59yo)

    Non-Executive & Independent Director of Frasers Centrepoint Asset Management Ltd.

    • Tenure: 2.8yrs
    • Compensation: S$89.02k
  • Choon Koh

    Non-Executive Independent Director of Frasers Centrepoint Asset Management Ltd

    • Tenure: 0.2yrs

Company Information

Frasers Centrepoint Trust's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Frasers Centrepoint Trust
  • Ticker: J69U
  • Exchange: SGX
  • Founded: 2006
  • Industry: Retail REITs
  • Sector: Real Estate
  • Market Cap: S$3.062b
  • Shares outstanding: 1.12b
  • Website: https://www.frasersproperty.com/reits/fct

Location

  • Frasers Centrepoint Trust
  • No.16-00 Alexandra Point
  • 438 Alexandra Road
  • Singapore
  • 119958
  • Singapore

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
J69USGX (Singapore Exchange)YesUnitsSGSGDJul 2006
FRZC.FOTCPK (Pink Sheets LLC)YesUnitsUSUSDJul 2006

Biography

Frasers Centrepoint Trust (“FCT”) is a leading developer-sponsored retail real estate investment trust (REIT). FCT’s property portfolio comprises the following suburban retail properties in Singapore: Caus ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/10 12:42
End of Day Share Price2019/12/10 00:00
Earnings2019/09/30
Annual Earnings2019/09/30


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.