Frasers Centrepoint Trust - OCBC Investment 2023-10-27: Ticking The Right Boxes

• Frasers Centrepoint Trust (SGX:J69U)’s FY23 (Oct 2022 to Sep 2023) results showcased its resilient operations, with the only blemish coming from the slight decline in its DPU, in our opinion.

FY23 results met our expectations

• - Read this at SGinvestors.io -
• This culminated in FY23 DPU of S$0.1215, a mild decline of 0.6% and a whisker away from our S$0.1214 forecast.

Robust rental reversions of 4.7% and higher committed occupancy of 99.7% for retail portfolio

• Frasers Centrepoint Trust achieved broad based positive rental reversions across its retail assets in FY23 (based on average signing rents versus average expiring rents) ranging between 1.8% and 10.3%, with the overall figure coming in at 4.7%.
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• The drive for positive rental reversions would also be supported by its high occupancy, which increased 1.0 ppt q-o-q to 99.7% for its retail portfolio.
• Frasers Centrepoint Trust’s Tampines 1 property is currently undergoing a major asset enhancement initiative (AEI), and management highlighted that it could outperform its initial target of a sub-8% return on investment (ROI), with the first phase of AEI to be completed before the start of the year end festive period.

Property portfolio valuation rose 0.6%

• Read more at SGinvestors.io.

OCBC Research Team OCBC Investment Research | https://www.iocbc.com/ 2023-10-27 SGinvestors.io

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