Singapore Exchange Ltd (SGX)

Singapore Exchange is Asia’s leading and trusted market infrastructure, facilitating the exchange of capital and ideas to create value for people, businesses and economies. As a multi-asset exchange operating equity, fixed income and derivatives markets to the highest regulatory standards, SGX is a vertically integrated business that provides listing, trading, clearing, settlement, depository and data services.

With about 40% of listed companies and over 80% of listed bonds originating outside of Singapore as well as established linkages across the region and in Europe, SGX is Asia’s most international and connected exchange. Offering a full suite of derivatives products across Asian equity indices, commodities and currencies, SGX is the world’s most liquid international market for the benchmark equity indices of China, India, Japan and ASEAN.

As Asia’s pioneering central counterparty, SGX is globally recognised for its risk management and clearing capabilities, and was one of the first globally to adopt the Principles for Financial Market Infrastructure.

Headquartered in AAA-rated Singapore, SGX has over 800 employees including offices in Beijing, Chicago, Hong Kong, London, New York, Mumbai, San Francisco, Shanghai and Tokyo.

Asia’s leading multi-asset exchange

SGX Market Strategist, Equity & Fixed Income, Singapore Exchange Ltd (SGX)

Geoff Howie

SGX Market Strategist, Equity & Fixed Income

Equity Bottom-Up

Frasers Hospitality Trust / Equity Bottom-Up

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<ul>
<li>
Of the trusts listed on SGX, the three belonging to the Frasers Property group are Frasers Logistics &amp; Commercial Trust, Frasers Centrepoint Trust and Frasers Hospitality Trust. They are categorised to the industrial/logistics and commercial, retail, as well as hospitality segments respectively. 
	 </li>
	<li>
For the year ended 30 Sept 2020, FLCT, FCT and FHT averaged a DPU/DPS of 5.853 Singapore cents, reflecting an average 30.6% decline. FCT reported the highest DPU of 9.042 Singapore cents, while FLCT was the only trust that reported a YoY increase in its DPU following its merger completion – up 1.7% to 7.120 Singapore cents. 
	 </li>
	<li>Following on from the SREIT Sector raising more than S$6 billion from secondary fundraisings last year, Frasers Centrepoint Trust has led the Sector in secondary fundraising activity in the first 10 months of 2020 with S$575 million in a private placement and $760 million in rights issues.</li>
</ul>
 

Of the trust listed on SGX, the three belonging to the Frasers Property group are <a href="https://www.frasersproperty.com/reits/flct">Frasers Logistics &amp; Commercial Trust</a>, <a href="https://www.frasersproperty.com/reits/fct">Frasers Centrepoint Trust</a> and <a href="https://www.frasersproperty.com/reits/fht">Frasers Hospitality Trust</a>. They are categorised to the industrial/logistics and commercial, retail, as well as hospitality segments respectively. In late October and early November, the trio unveiled their results for the full year ended 30 September 2020. 
Following on from the SREIT Sector raising more than S$6 billion from secondary fundraisings last year, Frasers Centrepoint Trust has led the Sector in secondary fundraising activity in the first 10 months of 2020 with S$575 million in a private placement and $760 million in rights issues completed in October. As highlighted in the SREIT and Property Trusts Chartbook (click <a href="https://api2.sgx.com/sites/default/files/2020-11/SGX%20Research%20-%20SREIT%20%26%20Property%20Trusts%20Chartbook%20-%20November%202020_0.pdf">here</a>) the combined market value of the SREITs &amp; Property Trusts has grown at a CAGR of 15% across 10 years. Earnings Highlights 
For the year ended 30 September 2020, FLCT, FCT and FHT averaged a distribution per unit/stapled security (DPU/DPS) of 5.853 Singapore cents, reflecting an average 30.6% decline. FCT reported the highest DPU of 9.042 Singapore cents, while FLCT was the only trust that reported a YoY increase in its DPU following its merger completion – up 1.7% to 7.120 Singapore cents. 
Net property income for the trio averaged S$143.0 million, down 6.9% YoY, while gross revenue averaged S$195.0 million, down 1.4% YoY. 
 

<ul>
<li>
FLCT: The YoY increases were contributed by the merger, German properties acquisition, and the FY2019 and FY2020 acquisitions, and partially offset by the effects of the FY2019 divestments, the Heatherton Road divestment, as well as S$5.7 million in rental waivers granted to and provisions for doubtful debt for qualifying SME tenants due to the pandemic</li>
	<li>
FCT: COVID-19 has hit the retail sector hard, particularly in 2H FY2020, and FCT has been working with its tenants to support them through this difficult period, including the provision of rental rebates which impacted the financial performance in 2H20 and for the full year; quantum of rental rebates provided totalled S$27.35 million</li>
	<li>
FHT: With global travel largely at a standstill and room occupancies significantly impacted by the COVID-19 outbreak, FHT’s portfolio performance across all geographies has been severely affected; FH-REIT was entitled to the contractual minimum rental income, i.e. fixed rent, under the master lease structure when some of its properties temporarily suspended operations and/or operated below their optimal performance level, thus providing downside protection to FHT during the outbreak 
	 </li>
</ul>
<table class="table table-striped"><tbody>
<tr>
<td>
			Name
			</td>
			<td>
			DPU/DPS (SG cts)
			</td>
			<td>
			YoY Chg (%)
			</td>
			<td>
			Net Property Income (S$M)
			</td>
			<td>
			YoY Chg (%)
			</td>
			<td>
			Gross Revenue (S$M)
			</td>
			<td>
			YoY Chg (%)
			</td>
		</tr>
<tr>
<td>
			FRASERS LOGISTICS &amp; COMMERCIAL TRUST*
			</td>
			<td>
			7.120
			</td>
			<td>
			1.7
			</td>
			<td>
			258.3
			</td>
			<td>
			46.2
			</td>
			<td>
			332.0
			</td>
			<td>
			53.0
			</td>
		</tr>
<tr>
<td>
			FRASERS CENTREPOINT TRUST
			</td>
			<td>
			9.042
			</td>
			<td>
			-25.1
			</td>
			<td>
			110.9
			</td>
			<td>
			-20.4
			</td>
			<td>
			164.4
			</td>
			<td>
			-16.3
			</td>
		</tr>
<tr>
<td>
			FRASERS HOSPITALITY TRUST
			</td>
			<td>
			1.398
			</td>
			<td>
			-68.3
			</td>
			<td>
			59.8
			</td>
			<td>
			-46.4
			</td>
			<td>
			88.6
			</td>
			<td>
			-40.9
			</td>
		</tr>
<tr>
<td>
			Average
			</td>
			<td>
			5.853
			</td>
			<td>
			-30.6
			</td>
			<td>
			143.0
			</td>
			<td>
			-6.9
			</td>
			<td>
			195.0
			</td>
			<td>
			-1.4
			</td>
		</tr>
</tbody></table>
Source: Company data 
*FLCT has adopted S$ as its functional currency with effect from 15 April 2020, the effective date of the merger between FLT &amp; FCT. Prior period results were based on A$ translated at the 15 April 2020 exchange rate of A$1: S$0.9016 used to convert the accounts to S$

 

Debt Profiles 
As of 30 September 2020, the trio of Frasers Property trusts averaged an aggregate leverage ratio of 37.0%, and an interest coverage ratio of 4.6 times. FCT had the lowest gearing of 35.9%, while FLCT had the highest interest cover of 6.4 times.

<table class="table table-striped"><tbody>
<tr>
<td>
			Name
			</td>
			<td>
			Aggregate Leverage Ratio (%) as at 30 Sept 2020
			</td>
			<td>
			Aggregate Leverage Ratio (%) as at 30 Sept 2019
			</td>
			<td>
			Interest Coverage Ratio (x) as at 30 Sept 2020
			</td>
			<td>
			Interest Coverage Ratio (x) as at  30 Sept 2019
			</td>
		</tr>
<tr>
<td>
			FRASERS LOGISTICS &amp; COMMERCIAL TRUST
			</td>
			<td>
			37.4
			</td>
			<td>
			NA*
			</td>
			<td>
			6.4
			</td>
			<td>
			NA*
			</td>
		</tr>
<tr>
<td>
			FRASERS CENTREPOINT TRUST
			</td>
			<td>
			35.9
			</td>
			<td>
			32.9
			</td>
			<td>
			5.0
			</td>
			<td>
			5.3
			</td>
		</tr>
<tr>
<td>
			FRASERS HOSPITALITY TRUST
			</td>
			<td>
			37.7
			</td>
			<td>
			35.1
			</td>
			<td>
			2.3
			</td>
			<td>
			4.7
			</td>
		</tr>
<tr>
<td>
			Average
			</td>
			<td>
			37.0
			</td>
			<td>
			 
			</td>
			<td>
			4.6
			</td>
			<td>
			 
			</td>
		</tr>
</tbody></table>
Source: Company data 
*No YoY data available as effective date of merger between FLT &amp; FCT was 15 April 2020 
 

Outlook 
Frasers Logistics &amp; Commercial Trust

<ul>
<li>There remains significant uncertainty on the duration and extent of the spread of the pandemic, which impacts how long the shut-down and containment measures implemented by governments must last, especially in view of recent infection resurgences; as a result, the operating environment is expected to remain challenging in the months ahead</li>
	<li>In Australia, even as the number of COVID-19 cases has continued to decline as a result of stringent mitigation strategies, COVID-19 remains a major public health issue and is having significant effects on the domestic economy and financial system
	<ul>
<li>In October 2020, the Australian Government reported a record 7.0% decline in GDP for the June quarter, and anticipates national GDP growth for the September quarter to remain subdued</li>
		<li>According to Reserve Bank of Australia in August 2020, full-year 2020 GDP is expected to contract by around 6.0% given the resurgent outbreak of the virus in the state of Victoria in July 2020 and the associated reintroduction of restrictions on activity, as well as the impact that uncertainty and diminished confidence have on household spending and business hiring and investment plans</li>
	</ul>
</li>
	<li>In Singapore, the COVID-19 outbreak has progressively come under control and the authorities are gradually easing containment restrictions, including allowing more people to return to workplaces since end September 2020, subject to meeting social distancing conditions
	<ul>
<li>The Singapore economy contracted by 7.0% on a y-o-y basis in 3Q 2020, an improvement from the 13.3% YoY contraction in the previous quarter, according to the Ministry of Trade and Industry</li>
		<li>The improved performance came on the back of the phased re-opening of the economy following the Circuit Breaker restrictions that were implemented between 7 April and 1 June 2020</li>
		<li>MTI announced on 11 August 2020 that it expects 2020 GDP contraction of -7.0% to -5.0%</li>
	</ul>
</li>
	<li>In Germany, the UK and the Netherlands, following a surge in infection cases across Europe, the respective authorities have tightened their COVID-19 restrictions to contain the spread of virus; accordingly, the pandemic is expected to have significant adverse effects on the German, British and Dutch economies
	<ul>
<li>According to the World Bank, the German, British and Dutch economies may contract by 6.0%, 5.4% and 9.8% respectively in 2020</li>
	</ul>
</li>
	<li>As we continue to navigate through this period of global uncertainty, FLCT will continue to remain focused on managing any financial implications arising from COVID-19 and will continue to work closely with our tenant community to overcome this trying period together</li>
	<li>There has been no material impact to the FLCT portfolio to-date, although the situation remains dynamic with continued uncertainties</li>
	<li>Capital and liquidity management remains a key strategic priority; FLCT’s resilient portfolio, strong balance sheet and financial flexibility, well positions the REIT to face the current challenging global environment</li>
	<li>Looking ahead, the REIT Manager will continue to focus on proactive asset and lease management strategies to generate sustainable long-term value for FLCT unitholders</li>
</ul>
 

Click <a href="https://links.sgx.com/1.0.0/corporate-announcements/BYINOS7O39I81KIY/638163_FLCT_FY2020_Results_Press_Release.pdf">here</a> for the full results release.

 

Frasers Centrepoint Trust 

<ul>
<li>The Singapore Department of Statistics reported retail sales index (excluding motor vehicles) (RSI ex auto) for August 20208 at -8.4% YoY, and +0.1% MoM (seasonally adjusted); the RSI ex auto index continued to recover since May 2020, when it was -45.2% YoY</li>
	<li>FCT’s portfolio shopper traffic has recovered and remained stable at between 60% and 70% of pre-COVID-19 level in the months of July 2020 to September 2020, since the re-opening of the economy in June 2020
	<ul>
<li>Total tenants’ sales have also recovered to near pre-COVID-19 levels although there are variances across trades and tenants</li>
		<li>Easing of safe distancing measures with Phase 3 reopening would likely support further recovery of shopper traffic and tenant sales</li>
	</ul>
</li>
	<li>Post the completion of AsiaRetail Fund (ARF) acquisition on 27 October 2020, FCT is now one of the largest suburban retail mall owners in Singapore with 11 suburban retail properties, an increase from seven previously
	<ul>
<li>The enlarged retail portfolio upon completion of the ARF acquisition provides FCT with significantly larger catchment population</li>
		<li>This strengthens FCT’s ability to offer more options and value to retailers and shoppers; this also provides FCT with the scale to drive omni-channel retail strategies and to enhance the role of its malls as “last-mile” fulfilment hubs in their immediate residential catchment, as working-from-home becomes more prevalent</li>
	</ul>
</li>
	<li>The Manager believes these factors will continue to underpin the long-term performance and resilience of FCT’s portfolio
	<ul>
<li>Its near-term focus is on managing the operating and financial performance of the enlarged property portfolio, taking into consideration the ongoing COVID-19 situation</li>
	</ul>
</li>
</ul>
 

Click <a href="https://links.sgx.com/1.0.0/corporate-announcements/36F6PICKSITQAYCL/637680_FCT_Press_Release.pdf">here</a> for the full results release.

 

Frasers Hospitality Trust 

<ul>
<li>The World Tourism Organization (UNWTO) reported that international tourist arrivals for August 2020 and for the first eight months of 2020 fell by 91% and 70% YoY respectively
	<ul>
<li>Despite a growing number of countries easing travel restrictions, many governments remain cautious in view of the development of the COVID-19 pandemic</li>
		<li>UNWTO anticipates that reduced travel demand and consumer confidence will continue for the rest of 2020</li>
		<li>While the extension of scenarios – based on the assumptions of a gradual and linear lifting of travel restrictions, the availability of a vaccine or treatment and a return of traveller confidence – point to a change in trend in 2021, the return to 2019 levels in terms of tourist arrivals would take between 2.5 to 4 years</li>
		<li>UNWTO also expects domestic tourism to return faster and stronger than international travel</li>
	</ul>
</li>
	<li>FHT has a portfolio of 15 quality assets which are well located in key cities of Australia, Singapore, the UK, Japan, Malaysia and Germany
	<ul>
<li>Presently, 13 of these properties are open while 2 remain closed. Its hotels in Australia, namely Sofitel Sydney Wentworth and Novotel Melbourne on Collins, have secured further contracts with the local government agencies for the isolation business</li>
	</ul>
</li>
	<li>Together with the operators and master lessees, FHT continues to operate in a highly challenging environment, with the risk of resurgence of the COVID-19 virus weighing on its portfolio performance</li>
	<li>Despite the significant uncertainty, FHT continues to prepare for the eventual recovery of international tourism and remains confident in the long-term fundamentals of the markets where it has presence in</li>
	<li>Given the sizeable domestic tourism markets in Australia, Japan and the UK, a rebound in domestic tourism is likely to help FHT’s properties in these countries recover sooner than the rest of its portfolio</li>
	<li>FHT continues to have ample debt headroom and sufficient liquidity to ride through these extraordinary times; the master lease structure for its properties also helps to mitigate the adverse impact of the pandemic</li>
	<li>FHT will continue to closely monitor the evolving situation and provide material updates as and when they arise 
	 </li>
</ul>
 Click <a href="https://links.sgx.com/1.0.0/corporate-announcements/EKTRI08O68A8UU1V/637434_FHT_FY2020_Results_Press_Release.pdf">here</a> for the full results release.
</body></html>





Of the trusts listed on SGX, the three belonging to the Frasers Property group are Frasers Logistics &amp; Commercial Trust, Frasers Centrepoint Trust and Frasers Hospitality Trust. They are categorised to the industrial/logistics and commercial, retail, as well as hospitality segments respectively.  
	 
	
For the year ended 30 Sept 2020, FLCT, FCT and FHT averaged a DPU/DPS of 5.853 Singapore cents, reflecting an average 30.6% decline. FCT reported the highest DPU of 9.042 Singapore cents, while FLCT was the only trust that reported a YoY increase in its DPU following its merger completion – up 1.7% to 7.120 Singapore cents.  
	 
	Following on from the SREIT Sector raising more than S$6 billion from secondary fundraisings last year, Frasers Centrepoint Trust has led the Sector in secondary fundraising activity in the first 10 months of 2020 with S$575 million in a private placement and $760 million in rights issues.

 

Of the trust listed on SGX, the three belonging to the Frasers Property group are Frasers Logistics &amp; Commercial Trust, Frasers Centrepoint Trust and Frasers Hospitality Trust. They are categorised to the industrial/logistics and commercial, retail, as well as hospitality segments respectively. In late October and early November, the trio unveiled their results for the full year ended 30 September 2020.  
Following on from the SREIT Sector raising more than S$6 billion from secondary fundraisings last year, Frasers Centrepoint Trust has led the Sector in secondary fundraising activity in the first 10 months of 2020 with S$575 million in a private placement and $760 million in rights issues completed in October. As highlighted in the SREIT and Property Trusts Chartbook (click here) the combined market value of the SREITs &amp; Property Trusts has grown at a CAGR of 15% across 10 years.  Earnings Highlights  
For the year ended 30 September 2020, FLCT, FCT and FHT averaged a distribution per unit/stapled security (DPU/DPS) of 5.853 Singapore cents, reflecting an average 30.6% decline. FCT reported the highest DPU of 9.042 Singapore cents, while FLCT was the only trust that reported a YoY increase in its DPU following its merger completion – up 1.7% to 7.120 Singapore cents.  
Net property income for the trio averaged S$143.0 million, down 6.9% YoY, while gross revenue averaged S$195.0 million, down 1.4% YoY. 
 



FLCT: The YoY increases were contributed by the merger, German properties acquisition, and the FY2019 and FY2020 acquisitions, and partially offset by the effects of the FY2019 divestments, the Heatherton Road divestment, as well as S$5.7 million in rental waivers granted to and provisions for doubtful debt for qualifying SME tenants due to the pandemic
	
FCT: COVID-19 has hit the retail sector hard, particularly in 2H FY2020, and FCT has been working with its tenants to support them through this difficult period, including the provision of rental rebates which impacted the financial performance in 2H20 and for the full year; quantum of rental rebates provided totalled S$27.35 million
	
FHT: With global travel largely at a standstill and room occupancies significantly impacted by the COVID-19 outbreak, FHT’s portfolio performance across all geographies has been severely affected; FH-REIT was entitled to the contractual minimum rental income, i.e. fixed rent, under the master lease structure when some of its properties temporarily suspended operations and/or operated below their optimal performance level, thus providing downside protection to FHT during the outbreak 
	 




			Name
			
			
			DPU/DPS (SG cts)
			
			
			YoY Chg (%)
			
			
			Net Property Income (S$M)
			
			
			YoY Chg (%)
			
			
			Gross Revenue (S$M)
			
			
			YoY Chg (%)
			
		


			FRASERS LOGISTICS &amp; COMMERCIAL TRUST*
			
			
			7.120
			
			
			1.7
			
			
			258.3
			
			
			46.2
			
			
			332.0
			
			
			53.0
			
		


			FRASERS CENTREPOINT TRUST
			
			
			9.042
			
			
			-25.1
			
			
			110.9
			
			
			-20.4
			
			
			164.4
			
			
			-16.3
			
		


			FRASERS HOSPITALITY TRUST
			
			
			1.398
			
			
			-68.3
			
			
			59.8
			
			
			-46.4
			
			
			88.6
			
			
			-40.9
			
		


			Average
			
			
			5.853
			
			
			-30.6
			
			
			143.0
			
			
			-6.9
			
			
			195.0
			
			
			-1.4
			
		

Source: Company data 
*FLCT has adopted S$ as its functional currency with effect from 15 April 2020, the effective date of the merger between FLT &amp; FCT. Prior period results were based on A$ translated at the 15 April 2020 exchange rate of A$1: S$0.9016 used to convert the accounts to S$

 

Debt Profiles  
As of 30 September 2020, the trio of Frasers Property trusts averaged an aggregate leverage ratio of 37.0%, and an interest coverage ratio of 4.6 times. FCT had the lowest gearing of 35.9%, while FLCT had the highest interest cover of 6.4 times.




			Name
			
			
			Aggregate Leverage Ratio (%) as at 30 Sept 2020
			
			
			Aggregate Leverage Ratio (%) as at 30 Sept 2019
			
			
			Interest Coverage Ratio (x) as at 30 Sept 2020
			
			
			Interest Coverage Ratio (x) as at  30 Sept 2019
			
		


			FRASERS LOGISTICS &amp; COMMERCIAL TRUST
			
			
			37.4
			
			
			NA*
			
			
			6.4
			
			
			NA*
			
		


			FRASERS CENTREPOINT TRUST
			
			
			35.9
			
			
			32.9
			
			
			5.0
			
			
			5.3
			
		


			FRASERS HOSPITALITY TRUST
			
			
			37.7
			
			
			35.1
			
			
			2.3
			
			
			4.7
			
		


			Average
			
			
			37.0
			
			
			 
			
			
			4.6
			
			
			 
			
		

Source: Company data 
*No YoY data available as effective date of merger between FLT &amp; FCT was 15 April 2020  
 

Outlook 
Frasers Logistics &amp; Commercial Trust


There remains significant uncertainty on the duration and extent of the spread of the pandemic, which impacts how long the shut-down and containment measures implemented by governments must last, especially in view of recent infection resurgences; as a result, the operating environment is expected to remain challenging in the months ahead
	In Australia, even as the number of COVID-19 cases has continued to decline as a result of stringent mitigation strategies, COVID-19 remains a major public health issue and is having significant effects on the domestic economy and financial system
	
In October 2020, the Australian Government reported a record 7.0% decline in GDP for the June quarter, and anticipates national GDP growth for the September quarter to remain subdued
		According to Reserve Bank of Australia in August 2020, full-year 2020 GDP is expected to contract by around 6.0% given the resurgent outbreak of the virus in the state of Victoria in July 2020 and the associated reintroduction of restrictions on activity, as well as the impact that uncertainty and diminished confidence have on household spending and business hiring and investment plans
	

	In Singapore, the COVID-19 outbreak has progressively come under control and the authorities are gradually easing containment restrictions, including allowing more people to return to workplaces since end September 2020, subject to meeting social distancing conditions
	
The Singapore economy contracted by 7.0% on a y-o-y basis in 3Q 2020, an improvement from the 13.3% YoY contraction in the previous quarter, according to the Ministry of Trade and Industry
		The improved performance came on the back of the phased re-opening of the economy following the Circuit Breaker restrictions that were implemented between 7 April and 1 June 2020
		MTI announced on 11 August 2020 that it expects 2020 GDP contraction of -7.0% to -5.0%
	

	In Germany, the UK and the Netherlands, following a surge in infection cases across Europe, the respective authorities have tightened their COVID-19 restrictions to contain the spread of virus; accordingly, the pandemic is expected to have significant adverse effects on the German, British and Dutch economies
	
According to the World Bank, the German, British and Dutch economies may contract by 6.0%, 5.4% and 9.8% respectively in 2020
	

	As we continue to navigate through this period of global uncertainty, FLCT will continue to remain focused on managing any financial implications arising from COVID-19 and will continue to work closely with our tenant community to overcome this trying period together
	There has been no material impact to the FLCT portfolio to-date, although the situation remains dynamic with continued uncertainties
	Capital and liquidity management remains a key strategic priority; FLCT’s resilient portfolio, strong balance sheet and financial flexibility, well positions the REIT to face the current challenging global environment
	Looking ahead, the REIT Manager will continue to focus on proactive asset and lease management strategies to generate sustainable long-term value for FLCT unitholders

 

Click here for the full results release.

 

Frasers Centrepoint Trust 


The Singapore Department of Statistics reported retail sales index (excluding motor vehicles) (RSI ex auto) for August 20208 at -8.4% YoY, and +0.1% MoM (seasonally adjusted); the RSI ex auto index continued to recover since May 2020, when it was -45.2% YoY
	FCT’s portfolio shopper traffic has recovered and remained stable at between 60% and 70% of pre-COVID-19 level in the months of July 2020 to September 2020, since the re-opening of the economy in June 2020
	
Total tenants’ sales have also recovered to near pre-COVID-19 levels although there are variances across trades and tenants
		Easing of safe distancing measures with Phase 3 reopening would likely support further recovery of shopper traffic and tenant sales
	

	Post the completion of AsiaRetail Fund (ARF) acquisition on 27 October 2020, FCT is now one of the largest suburban retail mall owners in Singapore with 11 suburban retail properties, an increase from seven previously
	
The enlarged retail portfolio upon completion of the ARF acquisition provides FCT with significantly larger catchment population
		This strengthens FCT’s ability to offer more options and value to retailers and shoppers; this also provides FCT with the scale to drive omni-channel retail strategies and to enhance the role of its malls as “last-mile” fulfilment hubs in their immediate residential catchment, as working-from-home becomes more prevalent
	

	The Manager believes these factors will continue to underpin the long-term performance and resilience of FCT’s portfolio
	
Its near-term focus is on managing the operating and financial performance of the enlarged property portfolio, taking into consideration the ongoing COVID-19 situation
	


 

Click here for the full results release.

 

Frasers Hospitality Trust 


The World Tourism Organization (UNWTO) reported that international tourist arrivals for August 2020 and for the first eight months of 2020 fell by 91% and 70% YoY respectively
	
Despite a growing number of countries easing travel restrictions, many governments remain cautious in view of the development of the COVID-19 pandemic
		UNWTO anticipates that reduced travel demand and consumer confidence will continue for the rest of 2020
		While the extension of scenarios – based on the assumptions of a gradual and linear lifting of travel restrictions, the availability of a vaccine or treatment and a return of traveller confidence – point to a change in trend in 2021, the return to 2019 levels in terms of tourist arrivals would take between 2.5 to 4 years
		UNWTO also expects domestic tourism to return faster and stronger than international travel
	

	FHT has a portfolio of 15 quality assets which are well located in key cities of Australia, Singapore, the UK, Japan, Malaysia and Germany
	
Presently, 13 of these properties are open while 2 remain closed. Its hotels in Australia, namely Sofitel Sydney Wentworth and Novotel Melbourne on Collins, have secured further contracts with the local government agencies for the isolation business
	

	Together with the operators and master lessees, FHT continues to operate in a highly challenging environment, with the risk of resurgence of the COVID-19 virus weighing on its portfolio performance
	Despite the significant uncertainty, FHT continues to prepare for the eventual recovery of international tourism and remains confident in the long-term fundamentals of the markets where it has presence in
	Given the sizeable domestic tourism markets in Australia, Japan and the UK, a rebound in domestic tourism is likely to help FHT’s properties in these countries recover sooner than the rest of its portfolio
	FHT continues to have ample debt headroom and sufficient liquidity to ride through these extraordinary times; the master lease structure for its properties also helps to mitigate the adverse impact of the pandemic
	FHT will continue to closely monitor the evolving situation and provide material updates as and when they arise 
	 

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Frasers Logistics & Commercial Trust (FLT SP)

FY Earnings of SGX’s Three Frasers Trusts