On 22nd January 2024, Frasers Centrepoint Trust announced their 1Q24 Business Updates. As this is only a business update, the manager of Frasers Centrepoint Trust will only share the Trust’s operational performance. There will be no updates related to financial performance.
As you can see from the key highlights that I have shared above, what was heartening about its 1Q24 updates was the high retail portfolio’s committed occupancy of 99.9%. Aggregate leverage also fell to 37.2% as compared to 39.3% back in September 2023. I believe the decline in gearing was attributed to the divestment of Changi City Point whereby the proceeds are used to par down its debt.
As of 31st December 2023, 63.4% of Frasers Centrepoint Trust’s borrowings are hedged to fixed interest rates. This is to mitigate against sudden interest rate hikes. Since last year, most REITs have been increasing their borrowings hedged at fixed interest rates against floating interest rates.
Frasers Centrepoint Trust 1Q24 Debt
Despite being just an business update, the manager of Frasers Centrepoint Trust does provide financial information regarding its debt.
As you can see from above, there is no refinancing risks for FY24. In subsequent financial years (FY), the debt maturity is also well-distributed.
Frasers Centrepoint Trust 1Q24 Occupancy
Occupancy has improved or stood strong across the retail malls in Frasers Centrepoint Trust’s portfolio.
Frasers Centrepoint Trust 1Q24 Lease Expiry Profile
As of 31st December 2023, 335 leases are due to expire in FY2024. In my opinion, this is not much of a concern as Frasers Centrepoint Trust usually has no issues renewing the leases with its existing tenants. This is due to the strategic location of its malls which also enjoy good shopper traffic.
Summary of Frasers Centrepoint Trust 1Q24 Business Updates
If you are a frequent shopper at malls under Frasers Centrepoint Trust, you would have noticed they have brought in popular brands such as Tim Hortons at NEX, Couple Lab at Causeway Point, NUDE seafood at Waterway Point and Twenty Loaf Toasties at Northpoint City.
I wanted to share that the manager has done a good job as I enjoyed these new popular brands. Cookhouse by Koufu at White Sands have recently gone through a revamp. Recently, I had my lunch there and the experience was positive.