Frasers Centrepoint Trust (J69U) H1 2025 earnings summary

Executive summary

• Delivered strong 1H 2025 performance with gross revenue up 7.1% to $184.4 million and net property income up 7.3% to $133.7 million, driven by asset enhancements, high occupancy (99.5%), and robust rental reversion of 9%.

• Shopper traffic and tenant sales grew 1.0% and 3.3% year-over-year, respectively, supported by proactive management and asset enhancements.

• Completed and announced major acquisitions, including Northpoint City South Wing, raising $421.3 million via equity fundraising.

• Maintained high committed occupancy at 99.5% across the retail portfolio, with active leasing and new-to-portfolio tenancies.

• Total return for the period was $97.0 million, up 12.4% year-over-year.

Financial highlights

• Gross revenue rose 7.1% year-over-year to $184.4 million; net property income increased 7.3% to $133.7 million.

• Distribution per unit (DPU) for 1H25 was 6.054 cents, up 0.5% year-over-year; total distribution to unitholders was $110.1 million, up 4.9%.

• Distributions from joint ventures surged 83.2% year-over-year, reflecting higher contributions from acquisitions.

• Aggregate leverage stood at 38.6%, with interest coverage ratio at 3.28x and average cost of debt at 3.9%.

• Net asset value per unit was $2.28 as of 31 March 2025; undrawn facilities totaled $596.6 million.

Outlook and guidance

• Expect continued support from muted retail supply, strong demand, and government disbursements (CDC, SG60, Climate Vouchers).

• Rental reversions for FY2025 expected to remain strong, likely between 7.7% and 9%.

• Average cost of borrowings expected to remain below 4% for 2H25, with 75%+ of debt hedged.

• Ongoing asset enhancement at Hougang Mall with 64% pre-commitment, targeting completion in 3Q 2026.

• Business performance expected to remain resilient despite macroeconomic uncertainties.