On 23 October 2025, Frasers Centrepoint Trust (“FCT”) announced their full year result for FY2025. This quarter saw the first issuance of perpetual securities by FCT, which indicates a change in capital structure of the REIT. The proceeds have been used to repay their borrowings, which in turn saw a notable decrease in gearing ratio during the quarter to more comfortable levels. There were no other significant changes this quarter.
With the exit of Cathay Cineplexes at Causeway Point and Century Square, this reduces the overall occupancy of FCT to 98.1%. Management has disclosed that excluding this and Hougang Mall due to ongoing AEI works, the committed occupancy for the remaining portfolio is held steady at 99.9%.
Disclaimer: Not financial advice. All data and information provided on this site is for informational purposes only. It does not take into account your individual needs, investment objectives and specific financial circumstances.
Website: Financial Statements And Related Announcement::Full Yearly Results
Financial Highlights
Distribution Per Unit (“DPU”)
| Metrics | Current | Previous |
|---|---|---|
| Distribution Per Unit | +0.1% | No Update |
| Rating | Neutral | Favorable |
For FCT, DPU are disclosed as follows:
- Second Half of FY2025: SGD0.06059 per unit
- First Half of FY2025: SGD0.06054 per unit
DPU for the second half of FY2025 remain relatively unchanged at SGD0.06059 per unit from SGD0.06054 per unit in the previous half of the year. The metric shifted towards Neutral.
Occupancy
| Metrics | Current | Previous |
|---|---|---|
| Occupancy | 98.1% | 99.9% |
| Rating | Favorable | Favorable |
Occupancy rate as of 30 September 2025 has weakened to 98.1%. Management has disclosed that the decrease was mainly due to Cathay Cineplexes. Excluding this, retail portfolio committed occupancy would be 99.9%. This metric remains Favorable as it is above my expected healthy occupancy rate of 95%. Do note that the numbers above exclude Hougang Mall due to ongoing AEI works.
Gearing Ratio
| Metrics | Current | Previous |
|---|---|---|
| Gearing Ratio | 39.6% | 42.8% |
| Rating | Neutral | Unfavorable |
Gearing ratio as of 30 September 2025 has decreased to 39.6%. The decrease was due to a decrease in borrowings, with an amount of SGD2,612 million as of 30 September 2025 as compared to SGD2,857 million in the previous quarter. Noted that there were repayments of borrowings using the proceeds from the issuance of perpetual securities in July 2025. The metric shifted towards Neutral.
Do note that perpetual securities amounted to SGD198 million as of 30 September 2025. This is not included in the gearing ratio and is not a concern from the regulatory perspective as perpetual securities will not cause a breach in regulation and force FCT to take unfavorable measures. However, perpetual securities rank higher than unit holders should liquidation occur and has priority payment over distributions, something investors will need to keep in mind.
Interest Coverage
| Metrics | Current | Previous |
|---|---|---|
| Interest Coverage | 3.5x | 3.4x |
| Rating | Favorable | Favorable |
The adjusted interest coverage as of 30 September 2025 has remain relatively unchanged at 3.5 times. The metric remains Favorable as it is above my preference of 3.0 times.
Debt Maturity Profile
| Metrics | Current | Previous |
|---|---|---|
| Debt Maturity Profile | 3.2 years | 3.4 years |
| Rating | Favorable | Favorable |
Weighted average term to maturity of their debt as of 30 September 2025 has shortened to 3.2 years. The metric remains Favorable as there is sufficient time to refinance their debts as they fall due. Do note that approximately 19.6% of their debt will mature by the end of FY2027.
Price to Book Ratio
| Metrics | Current | Previous |
|---|---|---|
| Price to Book Ratio | 1.09 | 1.00 |
| Rating | Neutral | Favorable |
The Price to Book (“P/B”) ratio became more expensive at 1.09. This is computed using the closing share price of SGD2.44 per unit on 24 October 2025 and the net asset value of SGD2.23 per unit as of 30 September 2025. The P/B ratio is Neutral as it is trading slightly above its book value.
As of 24 October 2025, the Market Capitalization is approximately SGD4,952 million.
Website: Yahoo Finance: Frasers Centrepoint Trust (J69U.SI)
Dividend
| Year | Yield | Total |
|---|---|---|
| 2025 | 4.96% | SGD 0.121 |
| 2024 | 4.94% | SGD 0.120 |
| 2023 | 4.98% | SGD 0.122 |
| 2022 | 5.01% | SGD 0.122 |
| 2021 | 4.90% | SGD 0.120 |
| 2020 | 3.76% | SGD 0.092 |
The total dividend payout amounted of SGD0.121 per unit for the calendar year 2025. With a closing share price of SGD2.44 per unit on 24 October 2025, this translates to a dividend yield of 4.96%. For my benchmark, a general reasonable range would be around 4.25%. The dividend yield is Favorable.
Website: Reasonable Dividend Yield 2025Q4 – 4.25%
If the required dividend yield increases to 5.25% as a benchmark, based on the dividend of SGD0.121 per unit there is potential for FCT to see its share price drop by another 5.5% to SGD2.30 per unit.
| Yield | Share Price | Downside |
|---|---|---|
| Current | 2.44 | – |
| 5.25% | 2.30 | -5.5% |
| 6.25% | 1.94 | -20.7% |
Interest Rate Sensitivity
The Federal Reserve on 17 September 2025 has cut the funds rate to a range of 4.00% to 4.25%, the first change since 19 December 2024. The Federal Reserve stance was that uncertainty about the economic outlook remains elevated. However, the Committee is attentive to the risks to both sides of its dual mandate and judges that downside risks to employment have risen. Lower job growth and higher inflation conflict with the Federal Reserve’s twin goals of stable prices and full employment. Therefore, they have proceeded with a 25-basis point cut to use it to help prevent the economy from getting worse.
Website: Fed approves quarter-point interest rate cut and sees two more coming this year
As FCT have debts that are exposed to floating rate, any change in interest rate will result in FCT experiencing changes to their cost of debt. Below is the debt profile for FCT as of 30 September 2025:
| Description | Amount (SGD’000) |
|---|---|
| Total Debt | $2,612,000 |
| Debt Not Hedged (%) | 16.6% |
| Debt at Floating Rate Exposed | $433,592 |
| Distributable Income FY2025 | $233,166 |
Interest rate sensitivity analysis as below:
| Change in Interest Rates | Change in Distributable Income (SGD’000) | Change as % of FY2025 Distribution |
|---|---|---|
| 50 bps | $2,168 | 0.9% |
| 100 bps | $4,336 | 1.9% |
| 150 bps | $6,504 | 2.8% |
| 200 bps | $8,672 | 3.7% |
Do note the above is my estimation which may be different from management’s estimation. Nonetheless, if the interest rates were to change by the basis points above, FCT may experience a change in DPU accordingly.
Other Metrics
Tenant profile
FCT has a well-diversified tenant profile with the top 10 customers as of 30 September 2025 account for about 18.9% of monthly portfolio gross rental income. Furthermore, no single tenant accounts for more than 6.0% of FCT’s gross rental income. This is Favorable as FCT will not be too reliant on any single tenant for income.
Heartland Living
The Singapore government intend for every town to have a shopping mall available and successful. Such that they are willing to have measures to help support heartland businesses financially. This means that as an investor of retail properties, you can be assured that there will almost always be tenants for your shopping malls, which translates to rental income. It may still be subjected to capital depreciation and appreciation when exposed to economic conditions, such as the current high interest rates. However as of now, your interests are in line with the government.
Website: The Bull Case For Investing In Singapore Retail Property
Summary
| Metrics | Financials | Rating |
|---|---|---|
| Distribution Per Unit | +0.1% | Neutral |
| Occupancy | 98.1% | Favorable |
| Gearing Ratio | 39.6% | Neutral |
| Interest Coverage | 3.5x | Favorable |
| Debt Maturity Profile | 3.2 years | Favorable |
| Price to Book Ratio | 1.09 | Neutral |
| Overall | Favorable |
Overall, the metrics remain Favorable to invest in FCT. This is the first quarter after the issuance of perpetual securities, which translates to a change in the capital structure of FCT. This, however, does not have an impact on the financial performance of FCT, and there were no other significant changes noted during the quarter.
Background
FCT is a leading developer-sponsored REIT and one of the largest suburban retail mall owners in Singapore. FCT’s property portfolio comprises nine retail malls and an office building located in the suburban regions of Singapore, near homes and within minutes to transportation amenities.
FCT is among the top ten largest Singapore REITs (“S-REITs”) by market capitalization. It is also an index constituent of several benchmark indices including the FTSE EPRA/NAREIT Global Real Estate Index Series (Global Developed Index), FTSE ST Real Estate Investment Trust Index, MSCI Singapore Small Cap Index and the SGX iEdge S-REIT Leaders Index.
Listed on the Main Board of the Singapore Exchange Securities Trading Limited since 5 July 2006, FCT is managed by Frasers Centrepoint Asset Management Ltd., a real estate management company and a wholly owned subsidiary of Frasers Property Limited.
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