Broker: CGS International
Date of report: July 28, 2026
Excerpt from CGS International report.
Report Summary
Stock Focus: Frasers Centrepoint Trust (FCT SP)
Action/Call: Add (Buy)
Target Price: S$2.86 (upside of 26.5% from current price S$2.26)
Key Highlights & Ideas:
- Portfolio Resilience: FCT’s 3QFY26 results show steady growth with shopper traffic up 2.4% and tenant sales marginally higher; committed retail occupancy remains strong at 99.6%.
- Growth Drivers: Asset Enhancement Initiatives (AEIs) at Hougang Mall and NEX are progressing well, expected to drive near-term DPU growth. AEI spaces are largely pre-committed with new anchor tenants and concepts.
- Long-term Development: FCT and partners were awarded the Bayshore Drive mixed-use site, with FCT holding a 50% stake in the commercial component. Development cost is c.S\$613m (100% basis), targeting a 5% yield on cost by end-2030. Funded by internal resources and proceeds from the proposed White Sands divestment.
- Balance Sheet & Funding: Pro forma leverage is expected to fall to 36.5% post-White Sands divestment, resetting for the next growth phase. Cost of debt continues to improve (3QFY26: 3.0%).
- Valuation & Risks: DDM-based target price remains at S\$2.86. FCT is liked for its exposure to Singapore’s resilient suburban retail segment. Key catalysts include AEI-driven sales recovery. Downside risks are weaker consumer spending and higher development costs.
Recommendation: Maintain Add with a target price of S\$2.86. FCT offers a sizable upside with improving fundamentals and clear growth visibility.
Above is an excerpt from a report by CGS International. Clients of CGS International can access the full research report from the broker’s website.
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