Frasers Centrepoint Trust’s Performance Review for 2H & FY2024

Core Insights - Frasers Centrepoint Trust (FCT) has shown strong financial performance for FY2024/25, driven by the acquisition of Northpoint City South Wing and successful asset enhancement initiatives [3][17][19] - The portfolio occupancy rate remains high at 98.1%, despite a slight decrease due to the exit of Cathay Cineplexes [10][19] - The debt profile has improved, with aggregate leverage decreasing to 39.6% and a significant portion of borrowings hedged at fixed rates [13][19] Financial Performance - For 2H FY2023/24, gross revenue increased by 14.3% to S$205.2 million, net property income rose by 12.0% to S$144.3 million, and distributable income to unitholders grew by 12.5% to S$123.1 million [3][4][5] - For the full year, gross revenue reached S$389.6 million, a 10.8% increase, while net property income was S$278.0 million, up 9.7% [5][6][7] - Property operating expenses increased by 20.1% in 2H FY2023/24 and 13.5% for the full year, primarily due to the new acquisition [5][7] Portfolio Occupancy - The portfolio occupancy rate was 99.9% in 3Q FY2024/25 but decreased to 98.1% in 4Q FY2024/25 [10][11] - Individual property occupancies remain strong, with most retail properties above 99%, except for Causeway Point (92.3%) and Century Square (91.8%) [11] - Positive rental reversions were recorded across all properties, ranging from +3.4% to +10.3% [12] Debt Profile - Aggregate leverage improved to 39.6%, well below the regulatory limit of 50% [13][14] - The percentage of borrowings hedged at fixed rates increased to 83.4%, the highest in six years [13][19] - Debt maturity is well-staggered, with a significant portion not due for refinancing until FY2028/29 or later [14] Distribution Payout - For 2H FY2024/25, a distribution payout of 6.059 cents/unit was declared, a slight increase from 6.02 cents/unit in the previous year [15][16] - The full-year payout was 12.113 cents/unit, reflecting a 0.6% improvement compared to the previous year [16] Management Outlook - The CEO highlighted the resilience of the suburban retail portfolio and the success of asset management strategies, indicating a positive outlook for future growth [17][19] - Opportunities for further asset enhancement and portfolio initiatives are anticipated, supported by Singapore's robust suburban retail sector [19][20]