Frasers Centrepoint Trust - RHB Invest 2024-07-26: Stable & Steady

• Frasers Centrepoint Trust (SGX:J69U)’s 3QFY24 business update showed stable operational numbers across its malls, with no major surprises. Tenant sales growth is starting to plateau, which could result in softer rent reversions ahead.
• - Read this at SGinvestors.io -
• The risk-reward profile is finely balanced, and investors should accumulate on dips.

Stable occupancy and mid-single-digit rent reversions.

• Its retail portfolio’s committed occupancy rate dipped by 0.2ppt to 99.7%, and management attributed this mainly to transitional vacancies.
• On retail rent reversions, Frasers Centrepoint Trust guided that these are similar levels to that of 1HFY24’s +7.5%. Tenant sales growth for the quarter, however, softened to +0.7% y-o-y (2QFY24: +4.3% y-o-y) – a sign of sales normalising from the post-pandemic spurt last year.
• - Read this at SGinvestors.io -

Tampines 1 has achieved a full committed occupancy rate

• Read more at SGinvestors.io.

Vijay Natarajan RHB Securities Research | https://www.rhbgroup.com/ 2024-07-26 SGinvestors.io

---