Dear readers, we are close to the end of yet another year in 2024.
The Straits Times Index constituent stocks has performed well this year, with DBS stock on of the stellar performers.
However, not all the STI stocks have done well this year, in particular, the Reits and Business Trusts listed on the STI. This is in view of the macro environment of lower interest rates.
One of the STI-based trusts which has not done well this year is Frasers Logistic and Commercial Trust.
The trust closed at $1.15 on the last trading day last year (29 Dec 2023). As of this time in writing, the trust is trading at $0.865 or 25% lower.
Frasers Logistic and Commercial Trust is currently undervalued, trading at 0.753 Price-to-Book and with a dividend yield of 7.95% per annum.
For investors who are not familiar with this trust, the aforementioned metrics which look good on paper may be a value trap. The most important consideration for investors is on business fundamentals and hence investors who are looking to pick up this trust on the cheap should only do it after a thorough due diligence.