Frasers Centrepoint Trust - RHB Invest 2024-01-25: Acquisition Of Additional Stake In NEX Mall

• Frasers Centrepoint Trust (SGX:J69U)’s acquisition of additional stake in NEX, the largest prime suburban mall, is a positive move. Post the acquisition, Frasers Centrepoint Trust will become Singapore’s largest prime suburban retail mall owner by NLA.
• - Read this at SGinvestors.io -

Acquisition of additional 25% effective interest in NEX

• Frasers Centrepoint Trust's announced the acquisition of additional 25% effective interest in NEX from the sponsor for S$523.1m – this takes Frasers Centrepoint Trust’s overall interest in the asset to 50%.
• - Read this at SGinvestors.io -
• We like this acquisition, as it provides earnings stability, diversification, and economies of scale in the longer run.
• NEX is currently fully occupied (99.9%) and upside potential is seen via reconfiguration of tenant space, asset enhancements, and low occupancy costs offer potential for healthy positive rent reversions.

Mildly DPU accretive, but huge upside potential if tax transparency status is achieved.

• Read more at SGinvestors.io.

Vijay Natarajan RHB Securities Research | https://www.rhbgroup.com/ 2024-01-25 SGinvestors.io

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