- Frasers Centrepoint Trust (SGX:J69U)’s 1Q business update underscored a stable operating performance and continued efforts to renew existing assets.
- - Read this at SGinvestors.io -
- Frasers Centrepoint Trust launched new AEI for NEX mall and Hougang Mall. AEI is on track for 3Q completion.
Stable operating performance
- Occupancy was stable at 98.1% with higher occupancy at Tiong Bahru Plaza and Tampines 1 offset by lower occupancy at Northpoint City. Occupancy will be 99.9% after 1Q following backfilling of cinema spaces at Causeway Point and Century Square.
- - Read this at SGinvestors.io -
- Hougang Mall AEI completed Phase 1 and is on track for completion on time (Sep this year) and achieving targeted RoI of 7%. Leasing commitment is up to 80% from prior 74%.
Stable debt metrics, unlocking value through AEIs
- Gearing inched up to 40.3% (4Q 39.6%) due to AEI related capex. Cost of debt was stable q-o-q at 3.5% and the guide for the full year is unchanged at ~3.3-3.4% with a mix of hedge repricing and refinancing of existing loans through new issuance of S$400m green loan.
- Frasers Centrepoint Trust announced new AEI at NEX mall for S$90m capex targeting a ROI of 7% and adding 44k sq. ft. of NLA (~7% of existing NLA). Starting in 2Q26, the AEI will last for ~2 years.
- Frasers Centrepoint Trust will mitigate impact on income through fees in units. Mgmt. also indicated potential AEI for Causeway Point mall.
Maintain BUY
- Read more at SGinvestors.io.
