Frasers Centrepoint Trust's 1H FY25 Result Review

Basic Profile & Key Statistics

Key Indicators

Performance Highlight

FCT delivered a stronger YoY performance, with improvements in gross revenue, NPI, distribution from investments, and distribution to unitholders. This was driven by the completion of the AEI at Tampines 1, better overall portfolio performance, and the acquisition of an additional interest in NEX. However, DPU remained flat, largely due to an enlarged unitholder base, lower proportion of management fees paid in units, and the absence of a retention release seen in the previous year.

Rental Reversion

The retail portfolio achieved a healthy rental reversion of 9%, with Central Plaza reporting an even stronger 10.3%.

Shopper Traffic & Tenant Sales

Both shopper traffic and tenant sales recorded YoY improvements, reflecting a strong retail activity.

Acquisition

FCT successfully completed an equity fundraising for the acquisition of 100% of Northpoint City South Wing, which is expected to be DPU-accretive after completion.

Asset Enhancement Initiative

The AEI at Hougang Mall commenced in April 2025 and is scheduled for completion in 3Q 2026.

Related Parties Shareholding

• REIT Sponsor's Shareholding: Favorable
• REIT Manager's Shareholding: Favorable
• Directors of REIT Manager's Shareholding: Less Favorable

Lease Profile

• Committed Occupancy: Favorable
• Highest Annual Lease Expiry in 4 Years: Less Favorable
• WALE: Less Favorable
• Weighted Average Land Lease Expiry: Moderate

Debt Profile

• Adjusted Interest Coverage Ratio: Moderate
• Cost of Debt: Moderate
• Gearing Ratio: Moderate
• Fixed Rate Debt Proportion: Moderate
• Unsecured Debt Proportion: Less Favorable
• Highest Annual Debt Maturity in 4 Years: Moderate
• WADM: Moderate

Diversification Profile

• Top Geographical Weightage: Less Favorable
• Top Property Weightage: Moderate
• Top 5 Properties' Weightage: Less Favorable
• Top Tenant Weightage: Moderate
• Top 10 Tenants' Weightage: Favorable

Key Financial Metrics

• Property Yield: Moderate
• Manager's Fees over Operating Distributable Income: Less Favorable
• Operating Distributable Income on Capital: Moderate
• Operating Distributable Income Margin: Favorable
• Operating Distribution Proportion: Moderate

DPU Breakdown

• TTM Distribution Breakdown:
• 92.3% from Operation
• 7.7% from Management Fees Paid in Units

Trends (Up to 10 Years)

• Uptrend: NAV per Unit, Committed Occupancy
• Slight Uptrend: None
• Flat: DPU from Operations
• Slight Downtrend: Property Yield, Operating Distribution Proportion
• Downtrend: Adjusted Interest Coverage Ratio, Top 5 Properties' Weightage, Top 10 Tenants' Weightage, Operating Distributable Income over Manager's Fees, Operating Distributable Income on Capital, Operating Distributable Income Margin

Price Range & Relative Valuation Metrics

• Dividend Yield: Average for 1y, 3y, 5y & 10y
• P/NAV: Average for 1y, 3y, 5y & 10y

Author's Opinion

Compared to the previous half-year, FCT’s performance has improved, supported by higher contributions from joint ventures and recent asset enhancements. While DPU remains similar, this was due to lower management fees payable in units. On the debt front, there is no refinancing required for the current fiscal year.

For more information, check out:

S-REITs Dashboard - Detailed information on individual Singapore REIT

S-REITs Data - Overview and detail of Singapore REITs

S-REIT Comparison - Comparison among Singapore REITs

REIT Review - List of previous REIT review posts

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*Disclaimer: The information presented on this blog is for educational and informational purposes only. The materials, including research and opinions, are based solely on my findings and should not be considered professional financial advice or a definitive statement of fact. I cannot guarantee the accuracy, completeness, or reliability of the information provided. I shall not be held liable for any errors, omissions, or losses that may occur as a result of using the information presented on this blog. It should be noted that the information presented on this blog does not constitute a buy, sell, or hold recommendation for any security. It is crucial to conduct your own thorough research and due diligence before making any investment decisions.