7 Facts to Know about Frasers Logistics & Commercial Trust (SGX: BUOU)

Introduction 

Hey, everyone! Welcome back to The Investing Iguana, your go-to channel for all things investment-related. I'm Iggy, your friendly and knowledgeable guide to the intricate yet super interesting universe of investments. Today, we're going to explore a topic that's buzzing in the minds of many—Real Estate Investment Trusts, commonly known as REITs. We're zooming in on one reet in particular, which is Frasers Logistics & Commercial Trust, or FLCT for short. You might also recognize it by its stock market ticker, which is SGX: BUOU.

So, get ready, grab a notebook and a pen, or even your phone to jot down notes, because I've got not just a few, but seven essential facts that you absolutely must know about FLCT.

Alright, let's kick things off by answering a basic question—what exactly is FLCT? Well, FLCT is a Real Estate Investment Trust based in Singapore that specializes in putting its money into properties that generate a steady income. We're talking about logistics centers, industrial buildings, and commercial spaces. But hold on, it's not just limited to Singapore! FLCT has a global reach, extending its investments to countries like Australia, Germany, the Netherlands, and even the United Kingdom. Think of it as the United Nations of the real estate world, but with a twist—it actually pays you dividends! So, it's like getting a little reward just for being part of it. Isn't that awesome?
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History of FLCT 

Let's take a moment to learn some history. FLCT, which stands for Frasers Logistics & Commercial Trust, came into existence in April 2020. How did it happen? Well, two different trusts, Frasers Logistics & Industrial Trust and Frasers Commercial Trust, decided to join forces and become one big trust. Even though it sounds like FLCT is pretty new, you shouldn't underestimate it. Fast forward to June 2023, and guess what? FLCT has grown incredibly strong and successful. It now owns a whopping 107 different properties, like buildings and land, and all of these together are worth an amazing S$6.9 billion. That's a lot of money! So, even though FLCT might seem young, it's already a big player in the game, showing that it's both strong and valuable.
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All Eggs in One Basket? 

So, let's talk about my next big idea, which is called diversification. You know how you shouldn't put all your eggs in one basket? Well, that's exactly what diversification is all about, and this company FLCT is really good at it. Imagine their business like a big pie. About 60% of that pie is made up of logistics properties, which are places where stuff gets moved around and stored. Then, another 30% of the pie is industrial properties, which are like big factories where things are made. The last slice, about 10%, is commercial properties, like offices and shops where people work and buy things. So, you see, they have a mix of different types of properties, which is really smart because if one part isn't doing so well, the other parts can help balance it out. Now, who rents these properties? It's a mix of big international companies and smaller local ones. They come from all sorts of industries like online shopping, moving goods around, making products, and even stores where you go shopping. So, FLCT is not just relying on one type of business or one type of property. They're spreading their eggs across many baskets, and that's a really smart way to do things.
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Frasers Logistics & Commercial Asset Management

For our third interesting point, let's dive into who's in charge of running things at FLCT. The company that manages FLCT is called Frasers Logistics & Commercial Asset Management. This management company is actually a smaller part of a much bigger company known as Frasers Property Limited. Now, if you haven't heard of Frasers Property, it's time to get familiar because they're a really big deal, especially in Singapore where they're super famous in the world of buildings and land. But they're not just big in Singapore; they're also a global powerhouse with their business stretching across more than 10 different countries around the world. So, when you decide to invest in properties that are part of FLCT, you're not just putting your money into bricks and mortar. Nope, you're also investing in a team of people who really know what they're doing. They've got tons of experience and they're super reliable, so you can feel confident that your investment is in good hands.
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FLCT Investment Approach

Fact number four focuses on how FLCT goes about its investment approach. You see, what they do is look for really good properties that are logistics, industrial, and commercial types, and they choose ones that are in places that make a lot of sense for business. It's like they're on a treasure hunt for the best spots to set up shop. But they don't just buy these properties and call it a day. Oh no, they take it a step further. After they've bought these properties, they work on making them even better. They have special plans and projects, known as asset enhancement initiatives and redevelopments, to increase the value of what they own. It's like they don't just buy a super cool racecar; they keep working on it, tuning the engine, adjusting the wheels, and maybe even giving it a new paint job, all to make sure it runs at its absolute best. So, in simple terms, FLCT is all about smart buying and smarter improving.
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FLCT Returns

Sure, let's dive into why people invest money. The main reason is to get more money back, right? That's what we call "returns." Now, there's this company called FLCT, and they're really good at giving people more money for their investment. They have a history of doing this really well, year after year. So, let's get into some numbers. In the year that ended in March 2023, FLCT gave back S$0.0567 for each unit of investment. This might sound like just a bunch of numbers and letters, but it's actually really important. It means that if you invested in them, you would get a 7.12% return on your money based on how much one unit of their investment cost in the middle of October 2023. So, in simple terms, if you put your money with them, you're likely to see it grow by 7.12%, and that's pretty awesome, don't you think?
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FLCT Areas of Focus

Fact number six focuses on the specific areas where FLCT is expected to do really well. You see, FLCT has a lot of properties that are connected to logistics and online shopping, or what we call e-commerce. Logistics is like the behind-the-scenes magic that helps move things from one place to another, and e-commerce is basically shopping online. Because more and more people are shopping online these days, and businesses need to move their products efficiently, these sectors are growing fast. So, FLCT is in a really good position to benefit from this growth over a long period of time. It's like FLCT has planted seeds in a garden that's going to grow a lot in the future. This makes investing in FLCT a smart choice if you're thinking about the long-term, kind of like planting a tree and watching it grow bigger over the years. So, if you're looking for an investment that's geared towards the future and is likely to grow along with these booming sectors, FLCT is definitely an option worth considering.
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Well-run REIT

Certainly! So, the seventh and final thing you should know is that this Real Estate Investment Trust, or REIT for short, called FLCT, is really, really good at what it does. It's not just any old REIT that buys and manages properties. Nope, it's special because it has a mix of different types of top-notch properties, like a fruit salad with all your favorite fruits! This makes it strong and less likely to be hurt if one type of property isn't doing well. The people running FLCT are super smart and careful. They have a game plan that's like a strong fortress, built to stand tall even when the financial weather gets stormy. So, it's not just about making money right now; they're in it for the long run. They want to keep making money year after year, in a way that's steady and reliable. So, to sum it up, FLCT is a really well-run REIT ​with a variety of excellent properties, and it's designed to be strong and make money for a long time, even when things get a little shaky in the market.
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Conclusion

Alright, listen up! We've just gone through seven super important things you need to know about Frasers Logistics & Commercial Trust. It doesn't matter if you're a seasoned pro at investing or if you're just starting out and dipping your toes into the world of Real Estate Investment Trusts (REITs)—you should absolutely keep an eye on FLCT. It's something you won't want to miss out on.
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And that's a wrap for today's video, my friends! If you found this information helpful and you think it could benefit others, make sure to hit that like button, share it with your friends and family, and don't forget to subscribe. This way, you'll always be in the loop for more awesome tips and deep explorations into how you can make your money work for you in the investment world. I'm Iggy, your friendly guide from The Investing Iguana, saying goodbye for now. Keep making smart investment choices, and I can't wait to catch up with you in our next video!
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