Investor Relations

What is a REIT?

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

What are the benefits of investing in a REIT?

REITs offer:

  • A liquid alternative to investing in real estate
  • Stable cashflow in the form of regular and stable cash distributions from rental income collected from tenants
  • Tax advantages to qualifying Unitholders as the distributions are free of tax at source
  • Portfolio diversification. REITs have a risk-return profile that is lower than equities and higher than bonds
  • Team of professionals to manage real estate portfolio
  • Investors are advised to consult their investment advisors prior to making investment decisions - or delete]
How can I invest in Frasers Logistics & Industrial Trust and what is the stock symbol?

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.

Can I use my Central Provident Fund (CPF) to invest in Frasers Logistics & Industrial Trust?

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.

What is the distribution policy and frequency of Frasers Logistics & Industrial Trust?

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.

What is the distribution currency of Frasers Logistics & Industrial Trust?

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.

Do I have to pay tax on the distributions?

Distributions made by FLT in respect of the Enlarged Portfolio may comprise all, or a combination, of the following types of distribution:

  • tax-exempt income distribution - which will be exempt from Singapore income tax in the hands of Unitholders;
  • after-tax income distribution - which will not be subject to further Singapore income tax in the hands of Unitholders; and
  • capital distribution - which will be regarded as return of capital in the hands of Unitholders. The amount of such distribution will be applied to reduce the cost of Units held by Unitholders. For Unitholders who are liable to Singapore income tax on gains arising from the disposal of Units, the reduced cost of Units will be used to calculate the amount of taxable gains when the Units are subsequently disposed of. If the amount of return of capital exceeds the cost or reduced cost of Units, the excess will be subject to tax as trading income of such Unitholders.

Distributions made by FLT from income or receipts from the Enlarged Portfolio will not be subject to Singapore withholding tax


Dual Currency Trading

What is dual currency trading?

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.

If the security has dual currency trading functionality, does it mean it is listed and offered in two different types of shares with different currency denomination?

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.

Currently, when the investor trades a listed security in existing AUD counter, he is already able to settle this trade with his broker in SGD (if he buys) or receive proceeds in SGD (if he sell). What is the difference with dual currency trading?

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.

If the investor buys the units in the SGD counter, can he subsequently sell in the AUD counter, or vice versa?

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.

If an investor would like to buy or sell the units, which counter is better?

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.

If there is a dividend distribution and the investor traded in both currency counters for the listed security, in which currency will the investor receive the distribution?

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.

Does the investor need to open a new account to trade in a security with dual currency trading functionality?

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.

What is the cost of trading a security with dual currency trading functionality?

The usual trading cost (including brokers' commission, SGX clearing fee and trading fees) applies, similar to any other listed security on SGX.

Can the investor do a contra trade between the two counters?

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.

How will the market value of the dual listed counters be reflected in the investor's monthly CDP statement?

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.

If the investor is to obtain margin financing from broker on the dual currency counter, how will the valuation be computed?

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.

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