Frasers Centrepoint Trust Results Slightly Shy of Forecast; Fair Value Estimate Lowered to SGD 2.38

Frasers Centrepoint Trust's, or FCT's, second-half 2022 results were slightly shy of our expectations with revenue and net property income coming in 5% and 7% below our estimates, respectively. The miss appears to be largely due to lower-than-expected in-place rent and net property income margin. Regardless, FCT still ended the year strongly with second-half net property income rising 6.0% year on year on the back of a 7.9% year-on-year increase in revenue. The growth is contributed by the absence of rental rebates provided to tenants and increase in atrium income following the resumption of atrium events. This is slightly offset by the loss of contribution from YewTee Point which was divested in May 2021.