Broker: OCBC Group Research
Date of Report: 28 July 2026
Excerpt from OCBC Group Research report.
Report Summary
- Stock: Frasers Centrepoint Trust (FCT)
Ticker: FCT SP EQUITY - Rating: BUY
- Target Price (Fair Value): SGD 2.43
Last Close: SGD 2.26 - Key Idea: FCT is strategically repositioning its portfolio through capital recycling, including the proposed divestment of White Sands at a premium and a successful joint bid for a Bayshore Drive Government Land Sales (GLS) site. The trust’s retail portfolio remains resilient with a high committed occupancy of 99.6% and continued growth in shopper traffic and tenants’ sales.
- Highlights & Actionable Insights:
- Proposed divestment of White Sands at SGD467m, 8.4% above independent valuation, expected to lower leverage from 40% to 36.5%.
- FCT will undertake 50% of the commercial component in the Bayshore Drive GLS project with estimated completion by end-2030 and an expected yield on cost of ~5%.
- Aggregate leverage ratio of 40.4% (pre-divestment), expected to decrease post-divestment, with stable debt cost outlook.
- Estimated DPU yield at 5.5% for FY26E and FY27E; DPU forecast for FY26 raised by 0.3% and FY27 reduced by 1.9% following the announced transactions.
- Potential catalysts: further value-accretive divestments, DPU-accretive acquisitions, and stronger-than-expected footfall and tenant sales.
- Main risks: macroeconomic slowdown, higher interest rates, and weaker rental reversions.
Implications: The actionable BUY rating and SGD2.43 target price reflect confidence in FCT’s portfolio resilience, successful capital recycling, and asset enhancement initiatives. The repositioning strategy provides room for future growth, with manageable risks and stable distributions for investors.
Above is an excerpt from a report by OCBC Group Research. Clients of OCBC Group Research can access the full research report from the broker’s website.
