A Real Estate Investment Trust (REIT) is a public real estate operating company organised as an investment trust for tax efficiency. A REIT enables individual investors to invest in portfolios that own large-scale income-generating properties. Professionally managed, a REIT collects rental income from tenants and distributes the income net of expenses to unitholders on a regular basis.
For more information on REITs, please visit MoneySense website at the following link: Type of Investments - REITs
Investors may purchase units in Frasers Logistics & Industrial Trust (FLT) through their stockbroker or investment advisor. Units in Frasers Logistics & Industrial Trust, which are denominated in Singapore dollars, have been listed on the Main Board of the Singapore Exchange (SGX-ST) under the short name "1CI9" since June 2016. The ISIN code is SG1CI9000006.
CPF members are allowed to invest up to 35% of the Investible Savings in their CPF ordinary account to purchase or where applicable, subscribe for new units in FLT. You are advised to contact CPF Board to check on the latest regulations prior to making investment decisions.
Frasers Logistics & Industrial Trust will distribute at least 90.0% of its Distributable Income on a semi-annual basis. Distributions to Unitholders are made on a semi-annual basis, with the amount calculated as at 31 March and 30 September each year for the six-month period ending on each of the said dates.
Distributions will be declared in Singapore dollars. Election of distributions in Singapore Dollars or AUD is available to unitholders. Each eligible Unitholder will receive his distribution in Singapore dollars unless he elects to receive the relevant distribution in AUD by submitting a "Distribution Election Notice" by such date as may be announced by the REIT Manager.
Distributions made by FLT in respect of the Enlarged Portfolio may comprise all, or a combination, of the following types of distribution:
Distributions made by FLT from income or receipts from the Enlarged Portfolio will not be subject to Singapore withholding tax
Dual currency trading is a new functionality that is offered on SGX Securities market. Investors can trade the same security in two currencies and their shares/unit holdings are custodised as a consolidated pool at the depository end.
There is no new offer of the security as it has already been listed on SGX. Dual currency trading for this security means a secondary trading line in a different currency has been created for this existing security. If the existing security has 1 billion shares in circulation, it will still have 1 billion shares after the addition of a dual currency trading counter.
Citing an example, if the investor wishes to trade a AUD-denominated security in Singapore dollars, he can either choose to trade the security with the secondary currency counter (i.e. SGD) on SGX or trade the security with the primary currency counter and settle in SGD with his broker. The difference is that the investor will know the traded price in SGD when he trades, whereas for the latter, he will only know the amount in SGD that he has to pay for, after the settlement of this trade.
Yes, the investor can buy from one currency counter and sell in the other currency counter. An investor who does a sell trade must make sure they have sufficient shares in his account. Otherwise, it will be a short-sell and buy-in will apply.
The investor has the flexibility to trade in either currency counters. He can either trade in the preferred currency counter (say AUD) or trade in the alternative currency counter (say SGD) and settle in AUD with his broker at the broker's prevailing exchange rate. The investor can compare these two market equivalent prices and decide the option that will be most suitable for him.
For the listed security with dual currency trading, one currency denomination will be the Primary Currency while the second currency denomination will be the Secondary Currency. The Primary Currency is usually the currency denomination in which the listed security is issued in. Dividend distribution will be made in the Primary Currency unless otherwise stated.
No new account is required to trade in a dual currency counter. Trading a dual currency security is no different from trading any other listed security. Investors need to have a CDP securities account and a trading account with a broker to trade securities listed on SGX.
The usual trading cost (including brokers' commission, SGX clearing fee and trading fees) applies, similar to any other listed security on SGX.
No, the two currency counters of the listed security are separate trading counters. Contra trade is only possible within the same counter like any other listed security.
The market value of the listed security with dual currency trading functionality will be computed based on the last done price of the Primary Currency counter and the total number of unit holdings of the listed security, regardless of whether the investor purchased the units through the Primary Currency counter or Secondary Currency counter.
Different brokers may have different valuation methodologies to compute the margin requirement. For example, some may use the last done price of the primary currency counter while others may use the traded currency of the counter. Investors are advised to consult their brokers for more information.