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

Frasers Centrepoint Trust - NEX Mall ~ The Newly Minted Titan In The Portfolio

Frasers Centrepoint Trust (SGX:J69U) | SGinvestors.ioFrasers Centrepoint Trust (SGX:J69U)
  • 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.

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  • 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.

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Above is the excerpt from report by DBS Group Research.
Clients of DBS may access the full report in PDF @

Geraldine WONG DBS Group Research | Derek TAN DBS Research | 2024-02-07

Read also DBS's most recent report:
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


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