This is one REIT which offers investors a steady DPU profile

SINGAPORE (Jan 23): DBS Group Research is maintaining its “buy” call on Frasers Centrepoint Trust (FCT) with $2.20 target price, given that the REIT offers investors a steady DPU profile while many other S-REITs are expected to face declining DPUs over the next couple of years due to the slowing Singapore economy.

This is made possible by FCT’s conservative strategy of paying the majority of its management fees in cash, which enables FCT to increase payment of fees in units to sustain DPU, says analyst Derek Tan in a report out today.

(See also: Fraser Centrepoint Trust reports 0.7% rise in 1Q DPU to 2.89 cents)

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