Frasers Centrepoint Trust - OCBC Investment 2024-07-25: Resilient Occupancy But Growth In Tenants’ Sales Softened

Frasers Centrepoint Trust - Resilient Occupancy But Growth In Tenants’ Sales Softened

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

Retail portfolio committed occupancy down sequentially but remained at a very healthy level

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  • Frasers Centrepoint Trust highlighted that the AEI at Tampines 1 is on track to be completed in Sep 2024 with 100% committed occupancy. There will be 68 new-to-mall concepts (of which 46 are new to Frasers Centrepoint Trust’s portfolio) accounting for 28% of the mall’s net lettable area (NLA). The return on investment (ROI) is expected to exceed management’s initial guidance of 8%, partly due to higher-than-expected signing rents.

Tenants’ sales and shopper traffic grew 0.7% and 4.1% y-o-y in 3QFY24, respectively

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  • No rental reversion figures were provided during the quarter, but management hinted that the run-rate was comparable to the rental reversions clocked in 1HFY24 (+7.5%).
  • We also note that suburban retail market rents increased 2.6% y-o-y and 0.3% q-o-q to S$31.95 per square foot per month in 2Q24, according to data from CBRE Research, and this was the twelfth consecutive quarter of sequential rental increase.

Aggregate leverage ratio increased to 39.1%, while proportion of debt hedged declined slightly to 67.2%

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Above is the excerpt from report by OCBC Investment Research.
Clients of OCBC Securities may be the first to access the full report in PDF @ https://www.iocbc.com/.




OCBC Research Team OCBC Investment Research | https://www.iocbc.com/ 2024-07-25



Read also OCBC's most recent report:
2024-10-28 Frasers Centrepoint Trust - Stable 2HFY24 DPU & Asset Valuations.

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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