Frasers Centrepoint Trust - UOB Kay Hian 2024-02-06: Pivoting Towards Dominant Suburban Malls

• The acquisition of an additional 24.5% stake in NEX is accretive to Frasers Centrepoint Trust's pro forma 2023 DPU by 0.4%. We expect the acquisition to be completed in end-2QFY24 and contributions to kick in starting 3QFY24.
• - Read this at SGinvestors.io -
• rightsizing its tenant mix to reduce the reliance on anchor tenants.
• Frasers Centrepoint Trust provides defensive FY25 distribution yield of 5.3%. Maintain BUY.

Rebalancing towards dominant suburban malls.

• Frasers Centrepoint Trust (SGX:J69U) has entered into a share purchase agreement to acquire an additional 24.5% effective interest in suburban mall NEX from sponsor Frasers Property (SGX:TQ5) for S$523.1m, bringing its effective interest to 50.0%. The agreed value for NEX is S$2,127.0m or S$3,352psf.
• - Read this at SGinvestors.io -

Benefitting from demographic tailwind due to strategic location.

• Read more at SGinvestors.io.

Above is an excerpt from a report by UOB Kay Hian Research.
Clients of UOB Kay Hian may be the first to access the full PDF report @ https://www.utrade.com.sg/.

Read also UOB's most recent report:
2024-10-28 Frasers Centrepoint Trust 2HFY24 - Generating Organic Growth Through AEIs.

Previous report by UOB:
2024-07-26 Frasers Centrepoint Trust - 3QFY24 Resilient Growth In Consumption At Suburban Malls.

Price targets by 2 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