- The Apr-Jun business update, yet again, underscored a robust operation of Frasers Centrepoint Trust (SGX:J69U). Malls are almost fully let with occupancy inching up 1ppt from the prior year. Shopper traffic rose a mid-single digit.
- - Read this at SGinvestors.io -
- Tampines 1 upgrade works is nearing completion with full occupancy.
Stable operations
- Portfolio occupancy was 99.7% vs 99.9% in 2Q and 98.7% a year ago. Inclusion of fully occupied Tampines 1 boosted headline occupancy.
- On a same-store basis, sequential occupancy trend was mixed - flat to up for NEX, Northpoint, Waterway Point and Tiong Bahru Plaza while down for the rest. Malls in the East were impacted by the proactive changes to the tenant/trade mix necessitated by the opening of Pasir Ris Mall.
- - Read this at SGinvestors.io -
Uptick in gearing is attributed to asset enhancements and working capital needs.
- Frasers Centrepoint Trust's gearing rose to 39.1% from 38.5% in 2Q. This has been attributed to working capital needs and capex for Asset Enhancement Initiatives (AEI). The funding cost of 4.1% and coverage ratio of 3.26x is unchanged q-o-q. Management guided for cap rates to stay unchanged for Sep year-end valuation and possible upside from operational improvement. This should take care of gearing, in our view.
Tampines 1 AEI completing successfully
- Read more at SGinvestors.io.
Above is the excerpt from report by Maybank Research.
Clients of Maybank Securities may be the first to access the full report in PDF @ https://www.maybanktrade.com.sg/.
Krishna Guha Maybank Research | https://www.maybank-ke.com.sg/ 2024-07-26
Read also Maybank's most recent report:
2024-10-27 Frasers Centrepoint Trust - Resilient Performance; Stabilizing Distribution.
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