Frasers Property’s board should act with some urgency to address weak share price

FRASERS Property (FPL) has started the year off by showing, once again, that it is a good real estate investment trust (Reit) sponsor. But its minority shareholders may now want the group to turn its attention to the value of FPL’s shares.

On Feb 6, Frasers Centrepoint Trust (FCT) and its sponsor FPL completed the joint purchase of a 50 per cent stake in Nex. FCT and FPL hold effective interests of 25.5 per cent and 24.5 per cent, respectively, in Nex.

Located in Serangoon Central, Nex is the largest mall in the north-east region of Singapore. It was bought at an agreed property value of S$2.08 billion, in line with its valuation as at end-2022, and a net property yield in the high 4 per cent region.