Frasers Centrepoint Trust - OCBC Investment 2024-10-28: Stable 2HFY24 DPU & Asset Valuations

• Frasers Centrepoint Trust’s 2HFY24 gross revenue and NPI fell 2.5% and 0.6% y-o-y to S$179.5m and 128.8m. This was due largely to loss of income from the divestment of Changi City Point and AEI at Tampines 1. However, DPU came in flat at 6.02 Singapore cents.

2HFY24 DPU flat y-o-y but down slightly 0.9% for FY24

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• Finance costs rose 3.9% to S$84.2m, while the number of units outstanding increased 6%, such that overall Frasers Centrepoint Trust's DPU declined by 0.9% to 12.042 Singapore cents. This accounted for 100.9% of our forecast, which we deem to be in-line with our expectations.

Robust rental reversions coupled with healthy levels of occupancy

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• Overall retail portfolio occupancy was unchanged at a high level of 99.7%. Tampines 1 completed its AEI and the return on investment (ROI) exceeded management’s target of 8%.
• Frasers Centrepoint Trust’s tenants’ sales and shopper traffic grew 1.2% and 4.2%, respectively in FY24, with the former averaging 20% above pre-pandemic levels (using FY19 as benchmark). As rents have grown faster than tenants’ sales, Frasers Centrepoint Trust’s retail portfolio cost increased from 15.6% in FY23 to 16.0% in FY24, but we would still consider this a very healthy level.

Slight uptick in portfolio valuations while aggregate leverage ratio declined to 38.5%

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OCBC Research Team OCBC Investment Research | https://www.iocbc.com/ 2024-10-28 SGinvestors.io

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