Nibbled Frasers Centrepoint Trust

After my failed attempt to buy Aims Apac Reit yesterday, my hands are getting itchier.

I am more determined than ever to deploy my spare cash into nibbling some great income-producing assets at current STI level of 2500.

Today I placed orders at 1.78 for Mapletree Logistics Trust, 2.03 for Frasers Centrepoint Trust, 1.14 for Aims Apac Trust (thinking that it would fall after reporting 27% drop in DPU to $0.02) and 2.52 for Mapletree Industrial Trust.

I got a fairly good chance of getting Mapletree Logistics Trust but did not as I saw the big boys using bots to sell automated 300 shares every 15 seconds while accumulating and scooping up many shares between 1.79 and 1.81. I also saw FCT being pumped up from 2.05 to 2.12 mid-day on low volume and then retreated back to 2.05 and below. In the end, my order was filled 2.03 and the big boys continued to scoop up whatever is available below 2.07.

Ever since the share price of FCT plunged from the high of $3.03 to bottom out at $1.66, it has been trending along the 20 MA line and above the 23.6% Fibonacci level at $1.98, which is a short-term strong support. It is unable to clear the 38.2% Fibonacci level at $2.18 after the 2Q 2020 results which saw it reduce DPU by 48.7% and retained some $18m of distributable income to help tide over the crisis for tenants.

I believe that the impact from Coronavirus pandemic has been largely factored into the share price and at $2 levels, we can enjoy around 20 to 30% discount off the 100 day MA between $2.70 to $3 price levels where FCT has been trading for the past year. Also considering that there was a preferential offering at $2.35 in Jun 2019 to raise funds for acquistion of Waterway point and the NAV of FCT is at $2.21, I believe that I am getting a decent value by nibbling some FCT at $2.03.

The short term share price fluctuations do not matter at all because I believe the retail industry will bounce back eventually. FCT will hit more than $2.70 again eventually. It may take 1 year, 2 years or even longer but suburban malls are the lives of HDB city dwellers. In my 10 Best Reits list, FCT is ranked 9th.

My plan is to stay invested at all times and enjoy the journey of building up an income portfolio. This may be my last purchase during this health crisis as my future funds from subsequent few months will be used to top up my mum's CPF retirement account to enjoy tax relief and also to pay off my personal income taxes, insurance annual premiums and credit card bills from hoarding groceries at Fairprice and Giant.

Thanks for reading. Stay home and be safe!

Love & Peace,
Qiongster