When Will You Sell A Stock

I Bought Frasers Centrepoint Trust

Frasers Centrepoint Trust Waterway Point

Taking opportunity of the recent stock price weakness, I bought Frasers Centrepoint Trust (SGX:69U). Accumulating Frasers Centrepoint Trust was actually my plan in the year 2023. As Frasers Centrepoint Trust’s share price was strong back then, there was not enough opportunity to accumulate this retail REIT.

With the recent news that the Fed are not in the rush to cut interest rates in June, this posed more opportunities for me to accumulate more of Frasers Centrepoint Trust. Many investors have shunned REITs or started selling their holdings because the Distribution Per Unit have fallen for most REITs. This is because the higher financial costs caused by the high interest rates environment eroded the REIT’s revenue.

As a dividend investor, I have kept calm and held on to my holdings. Based on Frasers Centrepoint Trust’s business update in the first quarter, the REIT’s fundamentals are still considered intact. The occupancy of the malls under Frasers Centrepoint Trust remains high at almost 100%.

The management still makes sounded decisions. With Frasers Centrepoint Trust’s divestment of Changi City Point, the gearing has also went down significantly to a safe ratio of 37.2%. As an unit holder, I applaud the divestment.

Recently on 18th March 2024, Frasers Centrepoint Trust (SGX:69U) was included into the Straits Times Index (“STI”).

Frasers Centrepoint Trust (SGX:69U) Share Price

Frasers Centrepoint Trust Share Price 9-Apr-2024

Based on Frasers Centrepoint Trust’s closing share price of S$2.19 and FY23 full year Distribution Per Unit (DPU) of 12.15 cents, the current dividend yield is 5.55%.

Frasers Centrepoint Trust’s current dividend yield of 5.55% is reasonable to me.

The Stock Catalyst for Frasers Centrepoint Trust (SGX:69U)

In my opinion, the catalyst for Frasers Centrepoint Trust will be:

  • New to portfolio brands and new retail concepts which continue to increase shopper traffic.
  • Fed rate cuts which in return reduces financial costs.

I shall not be providing any updates to my stock portfolio here as I may take opportunity to add other stocks to my stock portfolio.

Follow my blog for updates at the end of this month!

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