Broker: Maybank Research Pte Ltd
Date of Report: July 28, 2026
Excerpt from Maybank Research report
Report Summary
Stock: Frasers Centrepoint Trust (FCT SP)
Action: BUY
Target Price: SGD2.60 (19% upside from current price SGD2.26)
Key Highlights & Actionable Insights:
- Maintain BUY call on FCT, supported by defensive yield and stable operational performance.
- Target Price is SGD2.60, offering a substantial upside. The recommendation is based on resilient portfolio metrics and ongoing efforts to improve asset quality.
- Operational Performance: Portfolio occupancy remains high at 98.6%. Malls are nearly fully let with positive rental reversions in the low-to-mid single digits. Debt metrics are stable, with pro-forma gearing lowered to 36.5% after the divestment of White Sands Mall.
- Portfolio Reconstitution: Divestment of sub-scale White Sands Mall (at 8% premium to book) creates headroom for mixed-use commercial development with a projected yield of ~5%.
- Asset Enhancement: Major enhancement initiatives at Hougang Mall and NEX are progressing well, with high pre-commitment rates for new space.
- DPU Guidance: FY26-27E DPU trimmed marginally by 1.2%/1.9% post-divestment, but yield remains attractive, expected at 5.4%.
- Risks: Downside risks include macro uncertainties, tenant sales volatility, refinancing costs, and potential tenant defaults, but the portfolio’s defensive nature and limited retail supply mitigate these risks.
Implications:
Investors are advised to BUY Frasers Centrepoint Trust for its stable yield, high occupancy, and ongoing asset enhancements. The divestment and reinvestment strategy enhances the quality and growth potential of the portfolio, supporting long-term returns.
Above is an excerpt from a report by Maybank Research Pte Ltd. Clients of Maybank Research Pte Ltd can access the full research report from the broker’s website.
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