Frasers Centrepoint Trust (J69U) Q1 2025 TU earnings summary

Executive summary

• Portfolio occupancy remained high at 99.5%, outperforming the suburban market average of 96%.

• Tenant sales grew 2.5% year-on-year, with footfall up 2.7% quarter-to-quarter, reflecting effective asset management.

• Active placemaking and asset enhancement initiatives (AEI) continue to drive traffic and sales, with festive events in 1Q25 attracting over 500,000 additional shoppers.

• Portfolio positioned as community hubs, leveraging strong catchment growth, rising median incomes, and government support measures.

• Well-positioned for stable growth amid tight retail supply and positive macroeconomic trends.

Financial highlights

• Aggregate leverage stood at 39.3% as of 31 December 2024, slightly higher than last quarter.

• Interest coverage ratio at 3.33x; average cost of debt decreased to 4.0%.

• 65.5% of debt hedged to fixed rates; 88.3% of borrowings are green loans.

• Undrawn facilities total SGD 549 million, providing liquidity.

• No refinancing risk in FY25, with well-spread debt maturity profile through FY30.

Outlook and guidance

• Rental reversions are tracking in line with FY2024’s 7.7% level, with strong demand from quality tenants.

• Suburban retail market expected to grow, supported by new home additions, rising household income, and government support.

• CBRE forecasts islandwide retail rents to recover to pre-COVID-19 levels in 2025.

• Limited new retail supply (less than 1% p.a. growth) projected between 2025 and 2027.

• Interest rates expected to remain around 4% for the year, with no major refinancing due in FY2025.