Frasers Centrepoint Trust (J69U) Q3 2024 TU earnings summary

Executive summary

• Portfolio occupancy reached 99.7% at end-Q3 2024, with several malls including Tampines 1 at 100% occupancy post-AEI.

• Tenant sales are 20% above pre-COVID levels, with continued positive sales trajectory and 0.7% year-over-year growth.

• Tampines 1 AEI completed, delivering 100% occupancy and ROI exceeding 8% target.

• Strong asset management, proactive trade mix adjustments, and robust business operations underpin performance.

• Acquisition of an additional 24.5% effective interest in NEX will contribute fully from 2H24.

Financial highlights

• Aggregate leverage increased to 39.1% as of 30 June 2024, due to CapEx drawdown for Tampines 1 AEI.

• Interest coverage ratio stable at 3.26x; average cost of debt at 4.2% YTD, 4.1% for Q3.

• 67.2% of debt hedged to fixed rates; 68.5% of loans are green loans.

• Undrawn facilities of SGD 546.5 million; no refinancing required in FY2024.

• Credit ratings maintained at BBB (Stable) by S&P and Baa2 (Stable) by Moody's.

Outlook and guidance

• Interest cost expected to remain in the low 4% range for FY2024 and FY2025.

• Rent reversions remain strong at 7.5% and are expected to continue, supported by high occupancy and demand.

• Full benefits from Tampines 1 AEI and NEX acquisition to be realized in 2025.

• Limited new retail supply expected over the next 3-4 years, supporting occupancy and rental growth.

• Target to announce a new AEI project to further enhance growth.