Frasers Centrepoint Trust's 1H FY24 Result Review
Basic Profile & Key Statistics
Main Sector(s): Retail
Country(s) with Assets: Singapore & Malaysia
No. of Properties (exclude development/associate/fund): 10
Key Indicators
Performance Highlight
Gross revenue and NPI have declined YoY due to the divestment of Changi City Point and AEI of Tampines 1. Distribution from joint ventures has improved YoY due to the acquisition of an additional 10% stake in Waterway Point and the acquisition of a 25.5% interest in NEX. Nonetheless, distribution to unitholders and DPU remain similar despite the NPI decline due to higher management fees payable in units.
Rental Reversion
Retail portfolio rental reversion is at 7.5%. For Central Plaza, the rental reversion is at 2.8%.
Shopper Traffic & Tenant Sales
Both shopper traffic and tenant sales have improved YoY. While shopper traffic is still below the pre-COVID level, tenant sales have continued to surpass the pre-COVID level.
Divestment
FCT divested Changi City Point and shares in Hektar REIT in October and December 2023 respectively. In March 2024, FCT acquired another 24.5% interest in NEX.
Asset Enhancement Initiative
AEI work for Tampines 1 is on track to be completed by September 2024.
Related Parties Shareholding
The sponsor and manager have a relatively high shareholding, while the directors of the REIT manager hold a relatively low proportion of shares.
Lease Profile
The occupancy rate is high, however the WALE is short and there is a concentration of lease expiries in FY26.
Debt Profile
The overall debt profile is within the median range, with a well-spread debt maturity, but a relatively low proportion of unsecured debt.
Diversification Profile
The portfolio is diversified in terms of tenants but exhibits concentration in geographical and property contributions.
Key Financial Metrics
The operating distributable income margin is high but the operating distribution proportion is low. In addition, the management fee is high compared to operating distributable income.
DPU Breakdown
TTM DPU Breakdown87.7% from Operation10.9% from Management Fees Paid in Units1.4% from Released of Retention
Trends
Uptrend: DPU from Operation
Slight Uptrend: Property Yield
Flat: NAV per Unit, Committed Occupancy, Operating Distributable Income on Capital
Slight Downtrend: Operating Distributable Income Margin
Downtrend: Interest Coverage Ratio
Relative Valuation
Dividend Yield: Average for 1y, 3y & 5y
P/NAV: Average for 1y, 3y & 5y
Author's Opinion
Compared to the previous half-year, there has been a decline in gross revenue and NPI due to the divestment of Changi City Point and shares in Hektar REIT. However, DPU remains similar as the manager has further increased the fees payable in units. In terms of debt, no refinancing is required for FY24.
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