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1. | What is a REIT? |
| | A Real Estate Investment Trust (REIT) is a public real estate operating company organized as an investment trust for tax efficiency. A REIT enables individual investors to make investments into 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. |
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2. | 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
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3. | How can I invest in FCOT and what is the stock symbol? |
| | Investors may purchase units in FCOT through their stockbroker or investment advisor. Units in FCOT, which are denominated in Singapore dollars, have been listed on the Main Board of the Singapore Exchange (SGX-ST) under the short name 'FrasersComm' or the abbreviated name 'FCOT'. The ISIN code is SG1T07929261. |
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4. | Can I use my Central Provident Fund (CPF) to invest in FCOT? |
| | 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 FCOT. You are advised to contact CPF Board to check on the latest regulations prior to making investment decisions. |
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5. | What is the distribution frequency of FCOT? |
| | FCOT reports its results and makes distributions on a semi-annual basis. The first results announcement and distribution was for the period from the Listing Date (30 March 2006) to 30 June 2006. Subsequent distributions take place on a semi-annual basis. |
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6. | Do I have to pay tax on the distributions? |
| | Foreign and Singapore Individuals who hold FCOT units as investment assets and not through a partnership will receive tax-free cash distributions. |
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7. | How many Unitholders does FCOT have and who are the top ones? |
| | As at 30 September 2008, FCOT has approximately 5,620 unitholders according to its register from Central Depository (Pte) Ltd. |
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| Frasers Centrepoint Limited | 130,559,972 | 18.3% | | Capital Group | 74,790,001 | 10.5% | | Noonday Capital (Farallon) | 68,780,000 | 9.6% | | Total | 274,129,973 | 38.4% | |
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8. | How many FCOT shares are in issue? |
| | FCOT has 714,506,973 units in issue as at 30 September 2008. |
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9. | Where can I find historical financial information on FCOT? |
| | FCOT’s past financial results can be found on the website under Financial Information (to hyperlink to respective page). You can also gather more information from FCOT’s annual reports for financial year 2006 and 2007 found under Publications (to hyperlink to respective page) section. |
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