Broker: DBS Group Research
Date of Report: 28 July 2026
Excerpt from DBS Group Research report.
Report Summary: Frasers Centrepoint Trust (FCT SP)
- Action: Maintain BUY
- Target Price: SGD 2.75
- Share Price (as of 27/07/2026): SGD 2.26
- Dividend Yield: 5.4%
- Forward P/E: 19.6x
- P/B: 1.0x
- Ticker: FCT SP
Key Highlights and Insights:
- FCT’s retail portfolio occupancy remains high at 99.6% (excluding ongoing asset enhancement initiatives at Hougang Mall and NEX).
- Shopper traffic and tenant sales posted year-on-year growth of 2.4% and 0.2%, respectively.
- Aggregate leverage is healthy at 40.4% (pro-forma 36.5% after White Sands divestment).
- The trust divested White Sands at an 8.4% premium to independent valuation, generating significant cash proceeds.
- FCT secured a 50% stake in Bayshore Drive’s upcoming mixed-use retail development, offering 160,000–180,000 sq ft of retail NLA by 2030, at an estimated 5% yield on cost.
- Active AEIs at Hougang Mall and NEX are progressing well, with strong pre-commitment rates and introduction of new-to-mall brands and concepts expected to drive future earnings.
- Average cost of debt declined to 3.0% as interest rate swaps expired, supporting stable near-term earnings.
- FCT is positioned for resilient near-term returns with a clear growth runway from portfolio rejuvenation and pipeline projects.
Implication for Investors: FCT provides a stable yield and growing earnings base through proactive asset management and strategic developments. The current valuation and future projects support the BUY call and target price of SGD 2.75.
Above is an excerpt from a report by DBS Group Research. Clients of DBS Group Research can access the full research report from the broker’s website.
