Frasers Centrepoint Trust - RHB Invest 2024-01-23: Healthy Operational Performance

• Frasers Centrepoint Trust (SGX:J69U) posted good set of 1QFY24 operational numbers with a healthy occupancy uplift and positive rent reversions.
• Gearing has edged down to comfortable levels post recent divestments. It also managed to raise a fixed proportion of debt, taking advantage of the recent fall in lending rates.
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Retail portfolio committed occupancy rose to 99.9%

• Retail portfolio committed occupancy rose to 99.9% (+1.5ppts y-o-y, +0.2ppts q-o-q) one occupancy improvements at Century Square (99.7%), Northpoint City North Wing (100%), and White Sands (99.8%).
• Management guided that overall rent reversions for the quarter well exceeded FY23’s +4.7%, and is likely to be in high single-digits.
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Tenant sales at above pre-COVID levels

• 1QFY24 tenant sales saw a slight dip (-0.7% y-o-y) due to renovations by several key anchor tenants – excluding this, it was slightly higher at +1.1% y-o-y.
• Overall, tenant sales across Frasers Centrepoint Trust’s malls for 2023 stood at ~18% above pre-COVID-19 levels, which resulted in a healthy occupancy cost of ~16%.

Refinancing cost pressures are easing off

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Vijay Natarajan RHB Securities Research | https://www.rhbgroup.com/ 2024-01-23 SGinvestors.io

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