Frasers Centrepoint Trust: Active Portfolio Management to Drive Growth

We maintain our fair value estimate of SGD 2.38 for Frasers Centrepoint Trust after an in-line first-quarter fiscal 2024 (September year-end) business update. Excluding Tampines 1, which is undergoing asset enhancement, the group’s portfolio occupancy improved 0.2 percentage point quarter on quarter to 99.9%. Meanwhile, first-quarter fiscal 2024 portfolio tenants’ sales were 0.7% lower year on year due to several key anchor tenants renovating their shops during the period in preparation for the upcoming festive season. Management is already seeing the positive effects of the completed renovation on their tenants’ sales and believes it will continue to drive growth into 2024. As for shopper traffic, FCT aims to improve this metric by organizing more events to attract shoppers and drive sales.