Riding resilient domestic consumption
- Frasers Centrepoint Trust (SGX:J69U)’s 3QFY23 business update confirmed stable operations. Committed occupancy rose through the year. Though sequentially lower, this was largely due to transitional vacancies as the manager repositions the malls.
- - Read this at SGinvestors.io -
- We reiterate our BUY rating and DDM-based target price of S$2.35 for Frasers Centrepoint Trust on a combination of operational resilience, attractive valuation and proactive asset management.
High occupancy, healthy tenant sales growth
- Committed occupancy was 98.7%, -50bps q-o-q, +160bps y-o-y. Sequential softness was due to frictional vacancy at Changi City Point as the manager tries to reposition the asset as an outlet mall in the East. Occupancy fell ~6ppt to 93% and is likely to stabilize at “high 90s”. Notably, with Tampines 1 mall undergoing AEI, occupancy stats have been withheld despite the mall being operational.
- - Read this at SGinvestors.io -
- NEX continues to perform in line with flagship malls in the portfolio. More operational stats and any AEI opportunities will be shared in due course.
Proactive asset and capital management
- Read more at SGinvestors.io.
