FCT Reports 98.1% 1QFY2026 Occupancy; Aggregate Leverage at 40.3%

Frasers Centrepoint Trust (FCT) has announced a committed occupancy rate of 98.1% for the first quarter of FY2026 ended December 31, 2025, remaining stable quarter-on-quarter. Following the quarter's end, the REIT's occupancy is projected to climb to 99.9%, driven by the successful leasing of the former cinema spaces at both Causeway Point and Century Square.

Measured by net lettable area, FCT's weighted average lease expiry (WALE) decreased to 1.7 years from 1.8 years in the preceding quarter. However, when calculated based on gross rental income, the WALE held steady at 1.8 years, showing no change from the previous quarter.

During 1QFY2026, FCT's aggregate leverage ratio increased to 40.3%, up from 39.6% recorded at the end of September 2025. Conversely, the interest coverage ratio improved to 3.54 times this quarter, rising from 3.46 times three months earlier.

Year-to-date, FCT's average cost of debt stood at 3.5%, a reduction from the 3.8% figure as of September 30, 2025. The amount of undrawn credit facilities available as of December 31, 2025, was $839.5 million.

In its business update, FCT highlighted that retail sales and rental income demonstrated resilience throughout the quarter, supported by Singapore's stronger-than-anticipated GDP growth. The economy expanded by 4.8% for the full year 2025, with fourth-quarter GDP surging 5.7% year-on-year.

Prime retail rents on Orchard Road saw a 2% year-on-year increase, while prime suburban retail rents experienced a more modest growth of 1.6% over the same period.

Looking forward, FCT expresses optimism for Singapore's suburban retail market, citing factors such as constrained new supply, ongoing population growth, and new residential developments. The REIT is also positive about the potential benefits from the new Johor Bahru-Singapore Rapid Transit System (RTS), anticipating that Causeway Point in Woodlands will evolve into a major regional shopping hub once the RTS becomes operational.

FCT has planned several asset enhancement initiatives (AEIs) for its portfolio. The AEI at Hougang Mall is scheduled for completion by September of this year, while the enhancement works at Nex are set to begin in the second quarter of 2026.

Units of FCT ended trading on January 23 at $2.26, down 1 cent or 0.441% for the day.