Analysts positive on FCT's potential award to build 'next suburban retail landmark' at Bayshore

Jovi Ho07-16

FCT is part of a consortium that placed the top bid of $2.13 billion in a tender that closed July 15. Jefferies Research analyst Wilson Ng warns of near-term drag on DPU during construction. Analysts...

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Jefferies Research analyst Wilson Ng warns of near-term drag on DPU during construction.\n\nAnalysts...</p>\n\n<a href=\"https://www.theedgesingapore.com/capital/brokers-calls/analysts-positive-fcts-potential-award-build-next-suburban-retail-landmark?utm_source=Blog&utm_medium=RSS&utm_campaign=Tiger_Brokers_app_RSS\">Source Link</a>\n\n</div>\n","source":"edge_highlight","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Analysts positive on FCT's potential award to build 'next suburban retail landmark' at Bayshore</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nAnalysts positive on FCT's potential award to build 'next suburban retail landmark' at Bayshore\n</h2>\n\n<h4 class=\"meta\">\n\n\n2026-07-16 12:30 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.theedgesingapore.com/capital/brokers-calls/analysts-positive-fcts-potential-award-build-next-suburban-retail-landmark?utm_source=Blog&utm_medium=RSS&utm_campaign=Tiger_Brokers_app_RSS><strong>Jovi Ho</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>FCT is part of a consortium that placed the top bid of $2.13 billion in a tender that closed July 15. Jefferies Research analyst Wilson Ng warns of near-term drag on DPU during construction.\n\nAnalysts...</p>\n\n<a href=\"https://www.theedgesingapore.com/capital/brokers-calls/analysts-positive-fcts-potential-award-build-next-suburban-retail-landmark?utm_source=Blog&utm_medium=RSS&utm_campaign=Tiger_Brokers_app_RSS\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"LU0588545490.SGD","symbol_name":"Eastspring Investments - Asian Equity Income AS SGD","start_time":0,"source_url":"https://www.theedgesingapore.com/capital/brokers-calls/analysts-positive-fcts-potential-award-build-next-suburban-retail-landmark?utm_source=Blog&utm_medium=RSS&utm_campaign=Tiger_Brokers_app_RSS","article_id":"2652473657","we_media_id":null,"thumbnails":[],"rights":{"source":"edge_highlight","url":"https://www.theedgesingapore.com/capital/brokers-calls/analysts-positive-fcts-potential-award-build-next-suburban-retail-landmark?utm_source=Blog&utm_medium=RSS&utm_campaign=Tiger_Brokers_app_RSS","rn_cache_url":null,"directOrigin":true},"url":"https://stock-news.laohu8.com/highlight/detail?id=2652473657","pubTimestamp":1784176232,"columns":[],"sourceInfo":{"source_id":"edge_highlight","name":"Edge"},"weMediaInfo":null,"summary":"FCT is part of a consortium that placed the top bid of $2.13 billion in a tender that closed July 15. Jefferies Research analyst Wilson Ng warns of near-term drag on DPU during construction.\n\n","collect":0,"end_time":0,"defaultTopTitle":"theedgesingapore.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"LU0588545490.SGD":"Eastspring Investments - Asian Equity Income AS SGD","SG9999001903.USD":"Aberdeen Standard Pacific Equity USD","LU0128522157.USD":"TEMPLETON ASIAN GROWTH \"A\" ACC","BK6512":"房地产股","LU1211504680.USD":"ALLIANZ HIGH DIVIDEND ASIA PACIFIC EQUITY \"AM\" (USD) INC","LU0048573645.USD":"富达东盟基金","LU0823417653.USD":"BNP PARIBAS SUSTAINABLE GLOBAL LOW VOL EQUITY \"C\" (USD) ACC","LU2237957811.SGD":"NIKKO AM GLOBAL EQUITY \"F\" (SGD) ACC","LU0488056044.USD":"Allianz Asian Multi Income Plus Cl AM DIS USD","SG9999001127.SGD":"United Singapore Growth Fund SGD","LU1282649810.SGD":"Allianz Asian Multi Income Plus Cl AMg DIS H2-SGD","SGXZ91733576.SGD":"FULLERTON SINGAPORE VALUE-UP \"I\" (SGD) ACC","SG9999014484.SGD":"Nikko AM ASEAN Equity Fund A SGD","LU0011963245.USD":"abrdn SICAV I ASIA PACIFIC SUSTAINAB  LE EQUITY \"A\" (USD) ACC","SG9999016042.SGD":"Schroder Singapore Trust A Acc SGD","LU2152927971.USD":"NORDEA 1 ASIAN STARS EQUITY \"BP\" (USD) ACC","GDV":"GDV股息收入基金","IE00BVYPNP33.GBP":"GUINNESS ASIAN EQUITY INCOME \"C\" (GBP) ACC","SG9999002679.SGD":"LionGlobal Singapore Balanced SGD","LU0345776255.USD":"NINETY ONE GSF ASIAN EQUITY \"A\" (USD) INC","SG9999001846.SGD":"Schroder Asian Equity Yield A Dis SGD","SG9999004360.SGD":"Nikko AM Shenton Thrift Fund SGD","GLS":"Gelesis Holdings","LU0441854154.USD":"JPM ASIA PACIFIC EQUITY \"A\" (USD) ACC","LU0345775950.USD":"NINETY ONE GSF ASIAN EQUITY \"A\" (USD) ACC","DPU":"Top KingWin Ltd","SG9999001226.SGD":"UNITED SUSTAINABLE ASIA TOP 50 \"A\" (SGD) ACC","LU0251144936.SGD":"Fidelity Sustainable Asia Equity A-SGD","LU0029875118.USD":"TEMPLETON ASIAN GROWTH \"A\" INC","SG9999013486.USD":"LIONGLOBAL SINGAPORE DIVIDEND EQUITY (USD) INC A","LU2506951875.HKD":"BNP PARIBAS SUSTAINABLE GLOBAL LOW VOL EQUITY \"CRH\" (HKDHDG) ACC","J69U.SI":"星狮地产信托","LU1634259557.SGD":"Eastspring Investments - Asian Low Volatility Equity Fund AS SGD-H","LU0188438112.USD":"SCHRODER ISF ASIAN EQUITY YIELD \"A\" ACC","LU0577902611.USD":"FULLERTON LUX FUNDS - ASIA GROWTH & INCOME EQUITIE \"A\" (USD) ACC","LU2506952097.USD":"BNP PARIBAS SUSTAINABLE GLOBAL LOW VOL EQUITY \"CRH\" (USDHDG) ACC","SG9999006266.SGD":"MANULIFE SINGAPORE EQUITY \"A\" (SGD) ACC","D05.SI":"星展集团控股","LU0672654166.SGD":"FTIF - Templeton Asian Growth A (acc) SGD-H1","SG9999000459.SGD":"Aberdeen Standard Pacific Equity SGD","LU1522347837.USD":"EASTSPRING INV ASIAN LOW VOLATILITY EQUITY FUND \"A\" (USD) ACC A","LU0878005551.USD":"UBS (LUX) KEY SELEC ASIA ALLOCATION OPPORTUNITY (USD) \"P\" (USD) ACC","LU0878004406.USD":"UBS (LUX) KEY SELEC ASIA ALLOCATION OPPORTUNITY (USD) \"P\" (USD) INC","LU0211331839.USD":"FRANKLIN MUTUAL GLB DISCOVERY \"A\" (USD) ACC","LU0261945553.USD":"FIDELITY ASEAN \"A\" ACC","SG9999002620.SGD":"LionGlobal South East Asia SGD","LU0882747503.HKD":"UBS (LUX) KEY SELEC ASIA ALLOCATION OPPORTUNITY (USD) \"P\" (HKD) INC","LU1770036033.HKD":"NINETY ONE GSF ASIAN EQUITY \"A\" (HKD) ACC","FCT":"FCT浮动利率基金","LU1504937902.USD":"CT (LUX) I ASIAN EQUITY INCOME \"DUP\" (EUR) INC"},"translate_title":"分析师对 FCT 在 Bayshore 打造“下一个郊区零售地标”的潜在奖项持积极态度","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"DPU":1,"D05.SI":0.69,"FCT":1.5,"GLS":1,"J69U.SI":1.5,"GDV":1},"content_text":"FCT is part of a consortium that placed the top bid of $2.13 billion in a tender that closed July 15. Jefferies Research analyst Wilson Ng warns of near-term drag on DPU during construction.\n\nAnalysts are positive on Frasers Centrepoint Trust's (FCT) potential involvement in building the \"next suburban retail landmark\" at Bayshore, after a Frasers Property-led consortium submitted the highest bid of $2.13 billion in a tender that closed on July 15.\nThe 99-year leasehold Bayshore Drive mixed-use government land sales (GLS) site, which can yield up to 1,280 residential units and 242,190 sq ft of commercial space, will serve as the key hub of the new Bayshore precinct, which is expected to comprise around 10,000 homes.\nA consortium comprising Frasers Property, FCT, Sunway MCL, Sekisui House and Lum Chang put in the top bid of $1,323 psf per plot ratio (ppr). If awarded, this would mark FCT's first development project.\nBuilding a new mall in Bayshore \"secures an additional future income stream at a lower cost than buying a completed one\", notes Jefferies Research analyst Wilson Ng. \"However, there could be a near-term drag on distribution per unit (DPU) through the construction period.\"\nThe development is to be integrated with Bedok South MRT Station on the Thomson East Coast Line. If awarded, FCT will develop and own 50% of the commercial component, which comprises 15% of the total gross floor area (GFA) and includes a retail mall with 160,000 to 180,000 sq ft of net lettable area. \nAssuming the site is awarded, Ng estimates the near-term drag on DPU for funding the development could be up to 2%, before a potential 5% accretion once the completed mall starts generating income. \nIn addition, incremental debt to fund the project could bring gearing back up to 39%, estimates Ng. The sale of White Sands mall for $467 million, announced at the start of the month, would have brought gearing down from 40% to 37%, adds Ng. \nNg keeps his \"buy\" call and $2.55 target price on FCT.\nDBS estimates $300 mil capital commitment\nWhile this marks FCT's first development project, the execution and earnings risks are mitigated by its 50% interest, writes DBS Group Research's Tabitha Foo. \"We view FCT's participation positively, given its strong track record in managing suburban malls and as it expands its exposure to eastern Singapore, particularly following the divestment of White Sands.\"\nAt around 170,000 sq ft of NLA, the retail component would be relatively comparable in size to Bedok Mall (220,000 sq ft NLA), adds Foo.\nBased on DBS's estimated retail gross development value (GDV) of around $550 million, FCT's capital commitment would likely be less than $300 million, which is less than 5% of its assets under management.  \n\"While the development is likely to dilute earnings in the near term due to its extended construction and subsequent stabilisation period, we believe the impact should be manageable, with proceeds from the White Sands divestment available for redeployment,\" adds Foo. \nWith a \"buy\" call, Foo's target price on FCT is much higher, at $2.75.\nBuilding new growth engines: RHB\nMeanwhile, RHB Bank Singapore analyst Vijay Natarajan takes a big picture view on the stock. \nHe likes the Bayshore Drive GLS site's \"strong location attributes\", as it is set to be integrated with the upcoming Bedok South MRT Station and new bus interchange. He also points to the area's \"affluent neighbourhood\".\nMore details on its share of total development costs and future plans are expected to be shared in FCT's upcoming 3QFY2026 results briefing on July 27, says Natarajan. \nHe praises FCT's divestment of White Sands mall at an 8.4% premium to an independent valuation carried out in May, which promises an estimated net gain of some $32.4 million.\nThe exit FY2025 net property income yield of 4.6% is \"in line with recent market transactions\", adds Natarajan. \"More importantly, we see it as a strategic move to divest a mature mall (100% occupancy) with the lowest rent reversion (3.4% in FY2025) in FCT's portfolio. The opening of Pasir Ris Mall in June 2024 nearby has intensified competition, reducing longer-term growth potential.\"\nThe transaction will lower pro-forma DPU by 2%, assuming proceeds are used to repay its debt, with gearing to decline to 36.5%, according to Natarajan. \"However, we see room for FCT to use some of the gains to offset near-term DPU dilution. The transaction is expected to be completed by September.\"\nMeanwhile, the asset enhancement initiative at Hougang Mall is nearing completion at an estimated return on investment (ROI) of 7%. Works have also begun at NEX mall with an estimated capex of $90 million and a similar 7% ROI target. \nCauseway Point is likely next in the pipeline with potential to increase GFA and a \"rejigging of trade mix on the cards\" to better cater to changing retail trends, says Natarajan. FCT is likely to embark on this with the opening of the Johor Bahru-Singapore Rapid Transit System Link in early 2027, he adds. \nNatarajan has a \"buy\" call on FCT with a target price of $2.69, which includes a 6% ESG premium based on the house's proprietary methodology. \nUnits in FCT closed 1 cent lower, or 0.4% down, at $2.25 on July 16.","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":false,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"isVideo":false,"video":null,"symbols":[],"gpt_button":0,"need_auth":false,"need_login_tip":false,"code":"91000000","status":"200"},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"isLaohu8Offline":false,"tenantId":"TBGLOBAL","deviceId":"web-server-community-laohu8-v3","version":"4.46.0","shortVersion":"4.46.0","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2652473657","isCrawlerRequest":true}