Frasers Centrepoint Trust - OCBC Investment Research 2025-01-23: A Clean Bill Of Health

• Frasers Centrepoint Trust provided a business update for 1QFY25.

Retail portfolio committed occupancy down slightly by 0.2 ppt q-o-q to 99.5%, while rents likely remained firm

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• The AEI at Hougang Mall is expected to generate a return on investment (ROI) of ~7% on CAPEX of S$51m. Management has already secured pre-commitment of ~50%, and it will carry out the renovation works in phases to minimise disruption. However, occupancy at the mall could reach a low of 80% on a worst-case basis during the AEI.

Shopper traffic and tenants’ sales (same store basis) rose 2.7% and 2.5% y-o-y respectively

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• There was some softness seen in Dec due to outbound travel, but this was offset by strength during October and November. Frasers Centrepoint Trust’s Christmas festive events helped to drive an additional footfall of ~500k as compared to 2023.
• Although Frasers Centrepoint Trust does not disclose rental reversion figures during its 1Q business updates, it said that it was on track to deliver a similar performance as it did in FY24, which was a healthy 7.7%.
• According to data from CBRE, suburban prime retail rents in Singapore grew 0.5% q-o-q and 1.6% y-o-y in 4Q24.

Higher but manageable aggregate leverage ratio of 39.3%

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OCBC Research Team OCBC Investment Research | https://www.iocbc.com/ 2025-01-23 SGinvestors.io

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