25 Annual Report Summary – The Singaporean Investor

Core Insights - Frasers Centrepoint Trust (FCT) is the largest suburban retail mall owner in Singapore, with assets under management of approximately S$8.3 billion [1] - The portfolio has expanded from 3 malls at its listing in July 2006 to 9 retail malls and an office building, strategically located in suburban regions [2] Key Developments during the Financial Year - Proposed acquisition of Northpoint City South Wing for S$1.17 billion completed in May 2025, enhancing FCT's position in the market [6] - Asset enhancement works commenced at Hougang Mall, expected to yield a 7% return on investment upon completion in September 2026 [6] - Divestment of Yishun 10 Retail Podium for S$34.5 million completed in September 2025, aimed at reducing debt and strengthening financial position [6] FY2024/25 Performance Highlights - Gross revenue increased by 10.8% year-on-year to S$389.6 million, while net property income rose by 9.7% to S$278.0 million, driven by contributions from Northpoint City South Wing and Tampines 1 [6] - Distribution payout to unitholders increased by 0.6% year-on-year to 12.113 cents [6] - Committed occupancy slightly decreased to 98.1% from 99.7% a year ago, with positive rental reversions averaging +7.8% across all malls [6] ESG Progress - FCT awarded the Regional Sector Leader (Listed) in the Asia, Retail category in the 2025 GRESB Real Estate Assessment, maintaining a 5-Star rating for five consecutive years [6] - Implemented Singapore's first circular economy food waste solution, reducing approximately 258,000 kg of food waste, equivalent to over 1.6 tonnes of carbon emissions avoidance [6] - Secured S$694 million in green loans, increasing the proportion of green loans in borrowings to 90.1% [11] Market Outlook - The Singapore retail sector is expected to remain resilient due to population growth, rising household incomes, supportive government schemes, and limited new retail space supply [8] - Upcoming developments in northern Singapore, including new housing and commercial projects, are anticipated to drive growth and increase footfall at FCT's properties [11] Financial Health - Aggregate leverage increased to 39.6%, with an average cost of debt down to 3.8% [6] - Strong occupancy rates and a healthy debt profile indicate stability in financial performance [12]