Latest news with #FrasersCentrepointTrust
Business Times
24-07-2025
- Business
- Business Times
Frasers Centrepoint Trust retail portfolio occupancy hits 99.9% in Q3
[SINGAPORE] Committed occupancy in the retail portfolio of Frasers Centrepoint Trust (FCT) reached 99.9 per cent in the third quarter ended Jun 30, 2025. This was a growth of 0.2 percentage point year on year, and 0.4 percentage point quarter on quarter. The Q3 2024 figure excludes the Tampines 1 mall, and the Q3 2025 figure excludes Hougang Mall, due to asset enhancement initiative (AEI) works, its manager said in a business update on Thursday (Jul 24). The committed occupancy at all of its malls – excluding Hougang Mall – remained above 99 per cent, with several seeing full occupancy. Both shopper traffic and tenants' sales across its retail portfolio increased in the period. Shopper traffic was up 2.1 per cent on a yearly basis; tenants' sales were up 4.4 per cent. The manager expects government support measures, such as Community Development Council and SG60 vouchers, to boost retail spending. The trust's recent acquisition of Northpoint City South Wing further strengthened the portfolio, added the manager, noting that it offers organic growth through potential AEIs and cost-savings over time. This acquisition 'consolidates FCT's position as Singapore's leading prime suburban retail space owner', it said, adding that Northpoint City is well-positioned to benefit from the north region's revitalisation, underpinned by substantial new homes and its transformation into a 'work-live-play hub'. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up The trust has completed equity fundraising of S$421.3 million, and issued S$200 million of perpetual securities, at a 'competitive pricing' of 3.98 per cent. FCT's manager also noted its healthy financial position, with an improved cost of debt at 3.7 per cent in Q3 2025. This is against 3.8 per cent in the preceding quarter, and 4.1 per cent in the corresponding year-ago period. Its average leverage was 42.8 per cent as at Jun 30, or 40.4 per cent on a proforma basis, based on total assets as at Jun 30, assuming the repayment of loans from the proceeds of the perpetual securities. Rents and retail sales remain resilient, amid geopolitical tensions and economic uncertainty, the manager said. It noted limited new retail space in the pipeline, with the private retail supply pipeline between 2025 and 2028 estimated to increase by about 2 per cent from the existing private stock. 'Limited supply and healthy demand continue to underpin the Singapore suburban retail market,' it added. The counter closed at S$2.20, down S$0.01 or 0.5 per cent on Thursday, before the announcement.
Business Times
29-04-2025
- Business
- Business Times
Frasers Centrepoint Trust posts 0.5% rise in H1 DPU to S$0.06054
[SINGAPORE] Frasers Centrepoint Trust (FCT) on Tuesday (Apr 29) posted a 0.5 per cent increase in distribution per unit (DPU) for the first half ended Mar 31 to S$0.06054, from S$0.06022 in the same period a year before. The DPU for H1 2025 will be paid on May 30, said the manager. Earlier on Mar 25, the manager announced the proposed acquisition of a 100 per cent interest in Northpoint City South Wing valued at S$1.17 billion. Additionally, through a private placement and preferential offering, FCT also raised about S$421.3 million. Revenue for H1 was up 7.1 per cent at S$184.4 million from S$172.2 million. Net property income (NPI) rose 7.3 per cent to S$133.7 million from S$124.6 million in the previous corresponding period. Distributions to unitholders for the period rose 4.9 per cent on the year to S$110.1 million from S$104.9 million, mainly due to higher NPI, full six-month contribution from the acquisition of an additional 24.5 per cent interest in Gold Ridge and better performance from Waterway Point and NEX. The real estate investment trust's (Reit) committed occupancy inched down slightly to 99.5 per cent from the previous quarter. FCT also recorded better rental reversions of 9 per cent, excluding Hougang Mall due to ongoing asset enhancement initiative works. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up Aggregate leverage stood at 38.6 per cent as at Mar 31. Cost of debt fell to 3.8 per cent this quarter from 4 per cent in the previous quarter. Looking ahead, the manager said that healthy population growth from new home builds over the near to mid-term in the vicinity of its malls, coupled with rising household incomes and supportive government measures such as the Progressive Wage Model and disbursement schemes, will continue to drive tenant sales and hence, growth for FCT. The manager expects interest rate movements and an increase in operating expenses to remain the key factors that may affect the Reit's performance. Barring unforeseen circumstances, FCT's average cost of borrowings are expected to stay below 4 per cent for H2 FY2025. Units of FCT closed unchanged on Monday at S$2.25.
Yahoo
28-03-2025
- Business
- Yahoo
Hougang Mall gets facelift with new shops & F&B outlets, expected completion by 2027
Residents of Hougang should be no strangers to Hougang Mall. The mall opened in 1997, and as a former resident of Hougang, I have a certain fondness for the mall. It underwent some renovations in 2006, but nearly 2 decades on, it's fair to say that the mall is clearly showing its age. Beginning in the second calendar quarter of 2025, the mall will be undergoing renovation works (the property owner, Frasers Centrepoint Trust, terms this as an Asset Enhancement Initiative or AEI), which are expected to end in late 2026. These works are expected to cost around S$51 million, based on the figures presented in the 16th Annual General Meeting for Frasers Centrepoint Trust. The exterior of the mall already shows signs of preparations for the AEI, with several of the outdoor stalls already closed. Among these are Qiji, Wok Hey, and Stuff'd. Old Chang Kee is still operating. KFC has also closed, and McDonald's will be closed from 14 Apr 2025. Other closures within the mall include Pepper Lunch, Gong Cha, and Long John Silver's, whose last day of operations is 9 Apr 2025. Cheng San Public Library will also be closed from 1 Oct 2025 until 2027 to undergo its own revamp. On a large display in the mall, The Future of Hougang Mall is explained to shoppers while also highlighting the improvements that they can expect when the works are completed. Some of these improvements are upgraded toilets, a more contemporary interior and a new entrance. When news of these closures began to be announced on social media, there was speculation that the entire mall would be shut down. Others disagreed and said the mall would still be open while the works were carried out in phases. Whatever the case may be, I look forward to Hougang Mall's new look and what it will bring. Hougang bakery has daily $1 bread offer, but how does it taste? The post Hougang Mall gets facelift with new shops & F&B outlets, expected completion by 2027 appeared first on
Yahoo
14-03-2025
- Business
- Yahoo
As recession fears rise and risk-free rates drop, S-REITs could benefit, JP Morgan says
As recession risks rise to 40%, Fed could have at least 2 rate cuts, benefitting S-REITs borrowing costs while widening yield spreads could trigger a REIT rally. Although S-REITs are an unlikely place to "hide" during a recession, JP Morgan reckons that a faster than expected 31% drop in 6-month Singapore benchmark rates and lower 1-month Sora down 100 basis points (bps) to 2.4% may see investors rotating to defensive yield plays. Against this background, JP Morgan is expecting a 15% upside to the S-REITs' September 2024 highs. "There is further potential for lower rates, as JPM and the Street are expecting two/three Fed rate cuts by end-2025, with our economists highlighting a 40% risk of a US recession this year. We estimate a 4% upside to S-REITs' DPU for every 100 bps fall in floating rates, and anticipate that S-REITs will revise down borrowing cost guidance. Yield spreads of 340 bps, the highest level since March 2022 which triggered a rally then, is also supportive," JP Morgan says. Its top picks are Singapore-focused names including CapitaLand Integrated Commercial Trust C38u, CapitaLand Ascendas REIT A17u, Keppel DC REIT, Frasers Centrepoint Trust J69u and laggards such as Mapletree Logistics Trust M44u. S-REIT borrowing costs should trend down with two-thirds of S-REITs at or above stabilised borrowing costs, JP Morgan reckons. In particular, lower floating rates should benefit S-REITs with a high proportion of floating rate debt, such CDL Hospitality Trusts J85, and those with a larger share of SGD-denominated debt, such as Frasers Centrepoint Trust where borrowing costs could trend lower than the manager's guidance. Additionally, coupons for S-REIT bonds have fallen to a three-year low of 3.2% from reduced spreads and a drop in 3-year swap rates. S-REITs are relatively more attractive with yields at 6.3% compared to bank yields at 6.2%, according to JP Morgan. To this, the caveat has to be added that banks pay out 50% to 60% of their earnings compared to S-REITs minimum payout of 90% of distributable income. But, alternatives, including Singapore's 6-month T-bill rates have fallen to 2.75%, and the 10-year bond yield is at 2.7% as of March 10. A widening yield spread could also trigger an S-REIT temporary, no matter how temporary. See Also: Click here to stay updated with the Latest Business & Investment News in Singapore What to do as US rates stay higher for longer and Chinese rates hit rock bottom Singapore credits to stay resilient in 2025; investors prefer lower-risk REITs Changes in ICR, leverage to come into effect immediately, with additional disclosures in March Read more stories about where the money flows, and analysis of the biggest market stories from Singapore and around the World Get in-depth insights from our expert contributors, and dive into financial and economic trends Follow the market issue situation with our daily updates Or want more Lifestyle and Passion stories? Click here
