OTCPK:FRZC.F

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 4.2% below its fair value

Earnings are forecast to grow 7.52% per year

Revenue grew by 4.7% over the past year

Pays a high and reliable dividend of 4.35%

Risk Analysis

Large one-off items impacting financial results

Profit margins (83.8%) are lower than last year



Snowflake Analysis

6 star dividend payer and good value.


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

Information is not available.


Market Performance


7 Day Return

0%

FRZC.F

-1.3%

US REITs

0.8%

US Market


1 Year Return

19.5%

FRZC.F

13.0%

US REITs

17.8%

US Market

Return vs Industry: FRZC.F matched the US REITs industry which returned 13% over the past year.

Return vs Market: FRZC.F exceeded the US Market which returned 17.8% over the past year.


Shareholder returns

FRZC.FIndustryMarket
7 Day0%-1.3%0.8%
30 Day0%0.1%1.8%
90 Day0%-0.9%4.1%
1 Year19.5%19.5%17.7%13.0%20.4%17.8%
3 Yearn/a35.2%18.2%45.9%36.4%
5 Year26.8%26.8%52.5%20.9%68.1%49.6%

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

No news available

Valuation

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

4.2%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: FRZC.F ($1.89) is trading below our estimate of fair value ($1.97)

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


Price To Earnings Ratio

PE vs Industry: FRZC.F is good value based on its PE Ratio (15x) compared to the REITs industry average (37.8x).

PE vs Market: FRZC.F is good value based on its PE Ratio (15x) compared to the US market (18.4x).


Price to Earnings Growth Ratio

PEG Ratio: FRZC.F is poor value based on its PEG Ratio (2x)


Price to Book Ratio

PB vs Industry: FRZC.F is good value based on its PB Ratio (1.3x) compared to the US REITs industry average (2x).


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?

7.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: FRZC.F's forecast earnings growth (7.5% per year) is above the savings rate (2.7%).

Earnings vs Market: FRZC.F's earnings (7.5% per year) are forecast to grow slower than the US market (14.2% per year).

High Growth Earnings: FRZC.F's earnings are forecast to grow, but not significantly.

Revenue vs Market: FRZC.F's revenue (3.1% per year) is forecast to grow slower than the US market (7.4% per year).

High Growth Revenue: FRZC.F's revenue (3.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: FRZC.F'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?

-2.4%

Historical annual earnings growth


Earnings and Revenue History

Information is not available.

Information is not available.


Past Earnings Growth Analysis

Earnings Trend: FRZC.F's earnings have declined by -2.4% per year over the past 5 years.

Accelerating Growth: FRZC.F's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: FRZC.F had negative earnings growth (-13.6%) over the past year, making it difficult to compare to the REITs industry average (8.3%).


Return on Equity

High ROE: FRZC.F's Return on Equity (7.4%) 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: FRZC.F has a high level of physical assets or inventory.

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


Financial Institutions Analysis

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

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

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

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

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

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


Next Steps

Dividend

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

4.35%

Current Dividend Yield


Dividend Yield vs Market

company4.4%marketbottom25%1.4%markettop25%3.7%industryaverage3.8%forecastin3Years4.7%

Current dividend yield vs market & industry

Notable Dividend: FRZC.F's dividend (4.35%) is higher than the bottom 25% of dividend payers in the US market (1.43%).

High Dividend: FRZC.F's dividend (4.35%) is in the top 25% of dividend payers in the US market (3.72%)


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (85.8%), FRZC.F's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: FRZC.F's dividends in 3 years are forecast to be thoroughly covered by earnings (0.09% 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?

2.9yrs

Average management tenure


CEO

Richard Ng 0

0.8yrs

Tenure

0

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


Management Age and Tenure

2.9yrs

Average Tenure

Experienced Management: FRZC.F's management team is considered experienced (2.9 years average tenure).


Board Age and Tenure

2.7yrs

Average Tenure

59yo

Average Age

Experienced Board: FRZC.F's board of directors are not considered experienced ( 2.7 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$197,19907 Nov 19
Schroder Investment Management Limited
EntityCompany
Shares100,000
Max PriceS$1.97
BuyS$2,231,63918 Jun 19
Frasers Centrepoint Asset Management Ltd.
EntityCompany
Shares1,301,644
Max PriceS$1.71
BuyS$3,111,84930 May 19
Schroder Investment Management Limited
EntityCompany
Shares1,800,000
Max PriceS$1.73
BuyS$1,392,59815 Mar 19
Schroder Investment Management Limited
EntityCompany
Shares836,300
Max PriceS$1.67

Ownership Breakdown

Information is not available.


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: 7.4yrs
  • Catherine Yeo

    Company Secretary of Frasers Centrepoint Asset Management Ltd.

    • Tenure: 3yrs
  • 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: 2.8yrs
  • 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: 0.8yrs

Board Members

  • Choong Kong Cheong (78yo)

    Independent Chairman of Frasers Centrepoint Asset Management Ltd

    • Tenure: 1.6yrs
    • Compensation: S$113.75k
  • Philip Eng (73yo)

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

    • Tenure: 13.5yrs
    • Compensation: S$98.75k
  • Christopher Tang (58yo)

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

    • Tenure: 13.8yrs
    • Compensation: S$58.50k
  • Simon Ho (58yo)

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

    • Tenure: 2.7yrs
    • Compensation: S$110.50k
  • Chai Seng Ho (59yo)

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

    • Tenure: 2.7yrs
    • Compensation: S$89.02k
  • Choon Koh

    Non-Executive Independent Director of Frasers Centrepoint Asset Management Ltd

    • Tenure: 0yrs

Company Information

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


Key Information

  • Name: Frasers Centrepoint Trust
  • Ticker: FRZC.F
  • Exchange: OTCPK
  • Founded: 2006
  • Industry: Retail REITs
  • Sector: Real Estate
  • Market Cap: S$3.081b
  • Listing Market Cap: S$2.248b
  • 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 Analysis2019/10/16 00:11
End of Day Share Price2019/07/18 00:00
Earnings2019/06/30
Annual Earnings2018/09/30


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.