Wednesday, July 25, 2012

Anchor Point and FCT

I visit Anchor Point from time to time and have always wondered whether I should be investing in Frasers Centrepoint Trust.  OCBC recently maintained a buy rating on FCT. On one hand, I am tempted to buy but on the other, I am a little skeptical since many of FCT's assets are in suburban areas.  Having witnessed the shoppers and traffic flow at Anchor Point, I am not so certain whether tenants there are profitable or not.  Have also seen the bookshop change hands a few times over the past years. The crowd on weekends are good but nothing fantastic.

Will probably just continue to monitor this before making any decision.  Not vested yet.

5 comments:

  1. Hello there,

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  2. Anchor Point is less than a 5% of the asset + it is a freehold property, it contribution to NPI is really small and is the only FCT properties not within walking distance to MRT.

    The reason why I choose FCT :
    1. Causeway Point + Yishun Point ard 80% of the asset has 80 years of leased remain. Based on it, although the payout is around 6% but is still much better than industrial reit which only average leased of 30-40 years if you assume land cost will keep going up in future.


    BTW I am invested FCT

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  3. FCT's main asset is still Causeway Point, which is contributes slightly more than half of gross revenue. Therefore I don't think Anchor Point is sufficient gauge. You should come look at CWP. In the coming recession, people will tend to shop in suburban malls, making this a highly defensive play.

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  4. Anchor Point is one of their weaker properties. The rest are better - eg. Causeway Point.

    ReplyDelete
  5. Hi all,

    Agree that Anchor Point is just a small asset in FCT's overall portfolio. I don't frequent the other malls owned by FCT so it will be good if there are people on the ground who can report on how business is looking like over there especially for places like Causeway Point.

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