SINGAPORE – Frasers Centrepoint Trust (FCT) posted on Oct 22 a distribution per unit (DPU) of $0.06214 for the second half ended Sept 30, up 2.6% from $0.06059 in the previous corresponding period.
This brought full-year DPU to $0.1235, a record high.
Distributable income for H2 rose 3.3% to $127.2 million, from $123.1 million in the same period the year before.
Revenue was up 8.7% at $223 million for the half-year, from $205.2 million before.
Net property income rose 11.5% to $160.9 million for the half-year period, from $144.3 million in the same period the year before.
The increases in revenue and net property income were driven by contributions from Northpoint City South Wing, which was acquired in May 2025, as well as higher passing rents across most malls.
For the full year, distributable income rose 8.2% year-on-year to $252.2 million. Revenue increased 14.2% year-on-year to $444.9 million, while net property income grew 15.7% year-on-year to $321.7 million.
Richard Ng, CEO of FCT’s manager, said the trust’s FY2026 performance was underpinned by healthy operating metrics, its capital recycling strategy and asset enhancement initiatives (AEI).
He said the $467 million divestment of White Sands created debt headroom for FCT to re-invest part of the proceeds in the joint development of the Bayshore Drive site, providing a new growth driver and potential future acquisition opportunity.
The trust also completed enhancement works at Hougang Mall in September. The first phase of AEI at Nex is scheduled for completion by end-2026. Enhancement works at Causeway Point are expected to begin in the second quarter of 2027.
Aggregate leverage fell to 38.7% as at Sept 30, from 40.4% as at June 30. Gearing would stand at 36.8% after repaying borrowings with divestment proceeds from White Sands after the close of the financial year.
Group short-term borrowings fell to $111 million from $404 million. The average cost of borrowing was 3.1% in Q4 FY2026, with a full-year cost at 3.2% compared with 3.8% in FY2025. The interest coverage ratio improved to 4.37 times as at end-September.
The manager expects Singapore’s suburban retail market to remain resilient, where positive demand and supply dynamics underpin organic DPU growth through healthy rental reversions and high committed occupancy.
FCT’s retail portfolio recorded committed occupancy of 99.7% as at end-September, while rental reversions averaged 6.6% for FY2026. Shopper traffic and tenants’ sales rose 1.8% and 1.3% year-on-year, respectively.
FCT’s H2 distribution will be paid on Nov 27, after books closure on Oct 30.
Units of FCT ended on Oct 21 at 1% or $0.02 higher at $2.06. THE BUSINESS TIMES
