Here’s why FCL is the cream of the Singapore REIT crop

Its dividend yields are unmatched.

Investors on the prowl for a solid investment should look no further than Frasers Centrepoint Limited (FCL), as analysts believe that the developer offers the highest dividend yields at around 5.1%.

According to a report by DBS, FCT is well on its way towards its goal of increasing revenues to contribute 60-70% of profit before interest and tax (PBIT) in the medium term.

Meanwhile, FCL’s property development division continues to offer robust earnings visibility with close to $3.6b of sales already secured, to be recognised in the next few years.

Recurring income will come from incremental revenues from the already-completed Water Point in Singapore, while completions of The Centrepoint, Northpoint Mall, and Fraser Tower over 2017-2018 will boost recurring incomes and profitability.

Moreover, DBS states that FCL will keep demonstrating its ability to capitalise value by strategically divesting matured assets to its listed REITs. FCL is thus able to free up capital, improve its balance sheet position, as well as recycle capital to projects with better returns.

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