Frasers Centrepoint Trust

For 2H FY25, gross revenue increased 14.3% year on year, NPI increased about 12%, and DPU was $0.06059. For the full year, DPU was $0.12113, up 0.6% from $0.12042 in FY24; full-year gross revenue and NPI were both higher, with NPI up 9.7%. Year-end aggregate leverage was 39.6%, interest coverage was 3.46x, average cost of debt was 3.8% for FY25 and 3.5% in the quarter, and NAV was $2.23 versus $2.29 in FY24. Management guided FY26 funding costs to about 3.3% to 3.4%, and said sustainable rental reversion is likely to be mid-single-digit positive.

Richard Ng framed FY25 as a year of proactive portfolio reconstitution, pointing to the Northpoint City South Wing acquisition, the Y10 divestment, and capital raisings of over $420 million via EFR plus $200 million of perpetual securities. He emphasized strong operating momentum from tight supply, healthy demand, and FCT’s focus on placemaking and community relevance to keep traffic and sales growing. His tone was constructive and confident, but he repeatedly stressed that FY26 will center on controllable, organic work rather than relying on M&A.

Annie Khung said 2H FY25 gross revenue rose 14.3% and property expenses rose 20.1%, while excluding the three affected malls, gross revenue would have been about 2.1% higher and property expenses about 5.1% higher. For the full year, gross revenue was up, property expenses rose 13.5%, NPI increased 9.7%, and DPU totaled $0.12113; NAV came in at $2.23, lower mainly due to the enlarged unit base from equity fundraising and derivative mark-to-market effects. She also highlighted a 39.6% leverage ratio, 3.46x interest coverage, average debt maturity of 3.16 years, 83.4% hedge ratio, a Baa2 stable Moody’s rating, and FY26 funding costs expected at about 3.3% to 3.4%.

Analysts focused on tenant sales at Causeway Point and Northpoint, the Cathay-related disruption at Century Square and Causeway Point, the outlook for FY26 reversions and sales, and whether FCT would need to look overseas for acquisitions. Management said Cathay’s contribution to 2H NPI had fallen to very little, and the space is being assessed for either a fast replacement tenant or repurposing, with an update expected by 1Q. On acquisitions, Richard Ng said FCT remains open but would be selective and value-driven; he also said FY26 priorities are South Wing optimization, Hougang AEI, NEX AEI, and repurposing the cinema space, while overseas buying is not the core focus.