Frasers Centrepoint Trust - DBS Research 2024-02-07: NEX Mall ~ The Newly Minted Titan In The Portfolio

• 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 an excerpt from a report by DBS Group Research.
Clients of DBS may access the full PDF report @ https://www.dbs.com/insightsdirect/.

Read also DBS's most recent report:
2025-04-30 Frasers Centrepoint Trust - Crown Jewel Of The Suburbs.

Previous report by DBS:
2024-10-28 Frasers Centrepoint Trust - 4 Reasons To Give 3 Cheers.

Price targets by 4 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 Dividend Payout Dates & Corporate Actions,
Frasers Centrepoint Trust News