- Frasers Centrepoint Trust announced its long-awaited acquisition of a further stake in NEX mall in Jan- 24, the first notable acquisition and fund raising within the REIT sector this year. The announcement was to purchase the remaining 24.5% stake from Gold Ridge Pte. Ltd. (GRPL), the entity holding NEX mall, raising total stake within the asset to 50%.
First fund raising for the year, strong interest, 2.5x oversubscribed.
- - Read this at SGinvestors.io -
- - Read this at SGinvestors.io -
- Due to equity financing, DPU accretion was 0.40%, lower compared to the accretion for the initial stake in NEX at 0.52% which was fully funded by debt. The long-term AEI plans in place for the mall and tenant refresh strategies that Frasers Centrepoint Trust will explore will help to further extract organic growth from the asset.
- The GFA optimization strategy to convert 60k sqft of carpark space into retail space should yield another 0.7% DPU accretion when it takes place.
Acquisition at 4.9% cap rate is favourable compared to market transactions in the low 4% range.
- Read more at SGinvestors.io.
Above is the excerpt from report by DBS Group Research.
Clients of DBS may access the full report in PDF @ https://www.dbs.com/insightsdirect/.
Geraldine WONG DBS Group Research | Derek TAN DBS Research | https://www.dbs.com/insightsdirect/ 2024-02-07
Read also DBS's most recent report:
2024-10-28 Frasers Centrepoint Trust - 4 Reasons To Give 3 Cheers.
Previous report by DBS:
2024-04-26 Frasers Centrepoint Trust - Maintaining An A+ Scorecard.
Price targets by 5 other brokers at Frasers Centrepoint Trust Target Prices.
Listing of research reports at Frasers Centrepoint Trust Analyst Reports.
Relevant links:
Frasers Centrepoint Trust Share Price History,
Frasers Centrepoint Trust Announcements,
Frasers Centrepoint Trust Dividends & Corporate Actions,
Frasers Centrepoint Trust News Articles
