To The Moon

🌟🌟🌟Frasers Centrepoint Trust $Frasers Cpt Tr(J69U.SI)$  is the "King of Suburban Retail Malls" in Singapore as it has a dominant position in the suburban retail space.  This is supported by 99% occupancy in all its malls with strong reversionary prospects.

Frasers Centrepoint Trust (FCT) is one of the largest suburban retail mall owners in Singapore.  Its Singapore retail portfolio includes 9 well positioned malls near to Singapore heartland, close to public transport like MRT where Singaporeans shop and eat.  These are Causeway Point, Century Square, Hougang Mall, NEX (50% ownership), Northpoint City, Tampines 1, Tiong Bahru Plaza, Waterway Point and White Sands.

In addition, FCT also owns an office building Central Plaza which is integrated with Tiong Bahru Plaza as part of mixed development in Singapore. 

FCT's Retail portfolio has around 2.7 million square feet of net lettable area with over 1,600 leases that has a strong focus on necessity spending, food and beverage and essential services.  FCT's retail malls enjoy stable and recurring shopper footfall supported by commuter traffic and residential population in the catchment areas.

On July 24, FCT provided a business update for the 3rd quarter ended June 30 2024.  FCT's retail portfolio has achieved 99.7% at all its retail malls.  FCT has a stable gearing ratio of 39.1% in 3Q24 that is below the 50% required for SReits.  Its average cost of debt is 4.1% for 3Q24.  Average debt maturity is 2.78 years. 

Tampines 1 completed its Asset Enhancement Initiative in September 2024, achieving an impressive 100% committed occupancy.  Its Returns on Investment outperforms its 8% target. 

FCT's portfolio shopper traffic for 3Q24 was up 4.1% year over year.  Portfolio tenants sales was 0.7% year over year.  Financial year to date tenants sales is 20% above the 2019 Pre Covid level.   Shopper traffic and tenants' sales achieved positive growth trajectory due to active asset and property management.  

The Singapore Government's initiative to support cost of living through the Assurance Package totalled more than SGD 10 billion.  This comprises of CDC Vouchers of which 50% can be spent at supermarkets in the retail malls, which helped to support FCT's tenants' sales. 

FCT has also initiated many programs to drive shopper loyalty and engaged the community in the malls.  These include Paralympic Movement Exhibition and Para Sports Try out at Causeway Point, Tampines 1 and Century Square, Food Bazaar at Tiong Bahru Plaza and Isetan's Hanabi Matsuri Fair at Waterway Point.   FCT's Paint It Forward 2024 involving more than 4,000 participants across all 9 malls over 30 days,   supported the Community Chest, raising SGD 100,000 for people with disabilities. 

Performance wise FCT's share price was up 1.7% last week and just 2.2% year todate.  In 2023, FCT has risen 12%.  

Financial analysts are bullish on FCT with a Buy rating, Target price ranging from  SGD 2. 70 to SGD 2.35.  DBS said that FCT continues to deliver a stellar report card for 3Q 24.  DBS also said that the maintenance of strong traffic and sales is a key positive as well as Tampines 1 AEI could push portfolio rental  reversion higher in the future. 

FCT is due to report its Q3 24 Earnings on October 22 2024.

Even though I am currently down 9.9% in FCT, I am keeping faith that this sterling SReit - the King of Suburban Malls will not only survive but thrive.  I believe that FCT is a resilient SReit as its well located malls will continue to enjoy increased footfall and steady business from Singaporeans living close to the catchment areas of the malls. 

I will continue to dollar cost average into FCT.   The good news is Tiger Brokers has a zero commission promotion until 31 October 2024 plus the chance to win fabulous prizes due to its National Day Promotion. 

Go Long Go Strong Go FCT! 🇸🇬🇸🇬🇸🇬🚀🚀🚀🌛🌛🌛🌈🌈🌈💰💰💰

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