2026 marks another milestone in the Investment Portfolio as it is 10 years holding of Frasers Centrepoint Trust.
Invested in 2016 at a price of $1.80 during the market crash in concern of China growth. Given already have CapitaMall Trust, now known as Capitaland Integrated Commercial Trust in the portoflio, it made no sense to get another of the same category. The primary reason to invest into it was for the potential of include Waterway Point as part of its assets (which later it did in 2019). The reason might seem silly but given the fact that in 2016, itst NAV was $1.91, an annual DPU of 11.608 cents which translated into 6.45% yield with reference to the holding price of $1.80. Don't see there is a negative reason to not include in the portfolio. Months later, through strategic mean I managed to reduce the holding price from $1.80 to $1.6314.
In 2019, there was a preferential offering of 31-for-1000 at $2.35/unit to raise fund to acquire Waterway Point. I took up the offering and increase my holding by 60% resulting in the average holding price rose from $1.6314 to $1.9021. In 2020, there was another fund raising excercise at the same price of $2.35/unit. This time round, I refuse to take up, make no sense to me, 2 fund raising excercise in 2 years and both at the same price. Instead, I used 孙子兵法 to increase my holding further at $0 cost and result in what I have now, 80% increase in holding in total compared to the initial investment. As such, I also managed to reduce the average holding price from $1.9021 to $1.6908 as of today.
After a decade of holding, the dividend return stands at 60.52%. If includes the forecoming distribution of 6.214 cents/unit (XD 29 Oct 2026), it will become 64.20%. Strictly speaking, the dividend return is kind of disappointing for a period of 10 years compared to the rest of the Reits which I have held for at 10-year point. CICT registered 87% at 10-year point, MapletreeInd Trust was 94.90% at 10-year point and Kep DC Reit was 76.04% at 10-year point. While both CICT and MIT have already hit the mathematically impossible to lose money status through more than 100% dividend return, Kep DC Reit is just 3.78% shy off the mark (which will be achieved in 2027), FCT could take another 3-4 years before it could achieve that. A 14 years time frame to get 100% return on dividend is the standard expectation for a 7% pa without compounding, so FCT in a way is on track to it.
Going forward, honestly I have no plan on this holding, simply just hold till the 100% dividen return is achieved.
FCT is the last in the Investment Portfolio for holding for at least a decade now.
