Broker Name: UOB Kay Hian
Date of Report: Tuesday, 27 January 2026
Excerpt from UOB Kay Hian report.
Report Summary
- Frasers Centrepoint Trust (FCT) is maintaining a resilient portfolio with expected improvement in occupancy rates to 99.9% in 2QFY26, driven by new tenants SAS Cineplex and Golden Village at Causeway Point and Century Square.
- FCT is enhancing key malls, including planned AEI (Asset Enhancement Initiative) at Causeway Point and NEX, and ongoing upgrades at Hougang Mall, aimed at strengthening footfall and tenant sales.
- Potential consumer spending leakage from the upcoming JB-Singapore RTS Link is expected to be offset by substantial population and job growth in the northern region, supporting long-term demand for FCT’s malls.
- Prudent capital management is reflected by stable aggregate leverage at 40.3% and majority green loan financing, with average debt cost guided at 3.3-3.4% for FY26.
- FCT’s suburban malls benefit from limited new supply and rising household incomes, supporting healthy rental reversions and stable dividend yields; the target price is S\$2.90 with a maintained BUY recommendation for 28.3% upside.
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