Frasers Centrepoint Trust (J69U) H2 2024 earnings summary

Executive summary

• Revenue and net property income (NPI) rose over 3% year-on-year on an adjusted basis, despite reported declines due to divestments and AEI; gross revenue up 3.5% and NPI up 3.4% like-for-like.

• Distribution per unit (DPU) for FY24 was 12.042 cents, slightly down 0.9% year-on-year but maintained above 12 cents; distributions to unitholders rose 3.2% to $214.3 million.

• Portfolio occupancy remained robust at 99.7%, with Tampines 1 achieving 100% committed occupancy post-AEI.

• Key milestones included the acquisition of an additional 24.5% interest in NEX, completion of Tampines 1 AEI with ROI exceeding 8%, and inclusion in the Straits Times Index.

• Strong ESG progress: five-star GRESB rating for the fourth consecutive year and solar panel installations at six malls.

Financial highlights

• FY24 gross revenue was $351.7 million, down 4.9% year-on-year due to divestments and AEI, but up 3.5% on an adjusted basis.

• NPI for FY24 was $253.4 million, down 4.6% year-on-year, but up 3.4% adjusted.

• Distributions from investments increased 29.3% to $49.3 million.

• Net asset value per unit stood at $2.29 as of 30 September 2024, down SGD 0.03 year-on-year.

• Portfolio value increased by 1.2% to $7,008 million, driven by Tampines 1 and NEX.

Outlook and guidance

• Positive outlook for Singapore’s prime suburban retail, supported by strong demand, low new supply, and high occupancy.

• FY25 expected to benefit from full contributions of Tampines 1 AEI and NEX acquisition; Hougang Mall AEI to commence in Q2 2025, targeting ~7% ROI and $51 million capex.

• Cost of debt projected to remain in the low 4% range; focus on cost optimisation and energy hedging.

• Continued emphasis on asset performance, growth, and ESG initiatives.