To The Moon

$Frasers Cpt Tr(J69U.SI)$

Basic Profile & Key Statistics

Key Indicators

Performance Highlight

Despite a slight YoY decline in gross revenue, NPI remained stable due to lower property expenses. Distribution from investments increased following the acquisition of an additional interest in NEX, leading to a YoY increase in distribution to unitholders. However, due to an enlarged unitholder base, DPU remained relatively unchanged.

Rental Reversion

Retail portfolio rental reversion for FY24 stands at 7.7%, with Central Plaza reporting a higher rental reversion of 9.3%.

Shopper Traffic & Tenant Sales

Both shopper traffic and tenant sales have improved YoY. While shopper traffic is still below pre-COVID levels, tenant sales have surpassed pre-COVID levels.

Asset Enhancement Initiative

The AEI for Tampines 1 was completed in August.

Related Parties Shareholding

• REIT Sponsor's Shareholding: Favorable

• REIT Manager's Shareholding: Favorable

• Directors of REIT Manager's Shareholding: Less Favorable

Lease Profile

• Occupancy: Moderate

• Income Received in SGD/Major Currencies: Less Favorable

• WALE: Less Favorable

• Highest Lease Expiry in 4 Years: Less Favorable

• Weighted Average Land Lease Expiry: Less Favorable

Debt Profile

• Gearing Ratio: Moderate

• Cost of Debt: Moderate 

• Fixed Rate Debt %: Moderate

• Unsecured Debt %: Moderate

• WADM: Moderate

• Highest Debt Maturity in 4 Years: Favorable

• Interest Coverage Ratio: Moderate 

Diversification Profile

• Top Geographical Contribution: Less Favorable

• Top Property Contribution: Less Favorable

• Top 5 Properties' Contribution: Less Favorable

• Top Tenant Contribution: Favorable

• Top 10 Tenants' Contribution: Favorable

Key Financial Metrics

• Property Yield: Moderate

• Management Fees over Operating Distributable Income: Less Favorable

• Operating Distributable Income on Capital: Moderate

• Operating Distributable Income Margin: Favorable

• Operating Distribution Proportion: Less Moderate

DPU Breakdown

• TTM Distribution Breakdown:87.5% from Operation11.9% from Management Fees Paid in Units0.5% from Retention Release

Trends (Up to 10 Years)

• Uptrend: NAV per Unit, Committed Occupancy

• Flat: DPU from Operation

• Downtrend: Adjusted Interest Coverage Ratio, Property Yield, Operating Distributable Income over Manager's Fees, Operating Distributable Income on Capital, Operating Distributable Income Margin, Operating Distribution Proportion

Price Range & Relative Valuation Metrics

• Dividend Yield: Average for 1y, 3y, 5y & 10y

• P/NAV: Average for 1y, 3y, 5y & 10y

Author's Opinion

Performance has improved compared to the previous half-year primarily due to higher income from the acquisition of an additional interest in NEX. DPU remains similar despite lower management fees payable in units and no retention release. Regarding debt maturity, 15.7% matures in the next fiscal year, for which FCT has secured refinancing facilities.

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*Disclaimer: The information presented on this blog is for educational and informational purposes only. The materials, including research and opinions, are based solely on my own findings and should not be considered as professional financial advice or a definitive statement of fact. I cannot guarantee the accuracy, completeness, or reliability of the information provided. I shall not be held liable for any errors, omissions, or losses that may occur as a result of using the information presented on this blog. It should be noted that the information presented on this blog does not constitute a buy, sell, or hold recommendation for any security. It is crucial to conduct your own thorough research and due diligence before making any investment decision.