Brief Overview:

Frasers Centrepoint Trust (SGX: J69U), or FCT, is Singapore’s largest suburban retail REIT, with a portfolio of 9 retail malls comprising approximately 3.0 million square feet of net lettable area and around 1,900 leases.

In addition to its retail assets, the REIT also owns an office property at Central Plaza (located next to Tiong Bahru Plaza). This asset was acquired as part of its purchase of AsiaRetail Fund Limited in October 2020, which added 5 retail malls (Tiong Bahru Plaza, White Sands, Hougang Mall, Century Square, and Tampines 1), along with the office property, to its portfolio.

As at 31 March 2026 (1H FY2025/26), FCT’s assets under management stood at S$8.4 billion.

Financial Performance (1H FY2024/25 vs. 1H FY2025/26):

1H FY2024/251H FY2025/26% Gain/Loss
Gross Revenue (S$’mil)$184.4m$221.9m+20.3%
Property Operating Expenses (S$’mil)$50.7m$61.1m+20.5%
Net Property Income (S$’mil)$133.7m$160.8m+20.3%
Distributable Income to Unitholders (S$’mil)$110.1m$125.0m+13.5%


FCT delivered a robust performance for 1H FY2025/26, with both gross revenue and net property income increasing by 20.3% year-on-year. This growth was driven by the acquisition of Northpoint City South Wing on 26 May 2025 and higher passing rents at most malls. However, this was partially offset by the divestment of the Yishun 10 Retail Podium and asset enhancement works at Hougang Mall.

Property operating expenses also rose by 20.5% year-on-year to S$61.1 million, mainly due to the addition of Northpoint City South Wing to its portfolio.

While distributable income to unitholders increased by 13.5% year-on-year, it grew at a slower rate compared to gross revenue and net property income. This was largely due to a 19.6% drop in distributions from joint ventures, which amounted to S$30.6 million, attributed to the absence of a one-off special dividend.

Portfolio Occupancy Profile (1Q FY2025/26 vs. 2Q FY2025/26):

1Q FY2025/262Q FY2025/26
Portfolio Occupancy (%)99.9%99.9%
Portfolio WALE (by NLA – years)1.7 years1.7 years
Portfolio WALE (by Gross Rent – years)1.8 years1.7 years


FCT’s portfolio occupancy remained largely unchanged compared to the previous quarter.

Looking at individual property occupancy, its retail properties (excluding Hougang Mall, which is undergoing asset enhancement works) maintain an impressive occupancy rate of at least 99.0%. The office property at Central Plaza also saw an improvement, with its occupancy rate rising to 95.4%, up by 0.8 percentage points from the previous quarter’s 94.6%.

As for lease expiries, in case you’re wondering, retail properties generally have lease terms of around 2-3 years, allowing landlords to regularly refresh their mall offerings to attract shoppers. FCT’s lease expiries are well-spread out, with 11.6% of leases due for renewal in the second half of FY2025/26. Additionally, about 32.1% of leases are due for renewal annually over the next 2 financial years (FY2026/27 to FY2027/28), while the remaining 24.2% are due for renewal in FY2028/29 or later.

Finally, the rental reversions stood at a positive +6.5%, which will continue to contribute to the REIT’s financial growth.

Debt Profile (1Q FY2025/26 vs. 2Q FY2025/26):

1Q FY2025/262Q FY2025/26
Aggregate Leverage (%)40.3%40.0%
Interest Coverage Ratio (times)3.5x3.6x
Average Cost of Debt (%)3.5%3.3%
Average Term to Debt Maturity (years)2.9 years3.9 years
% of Borrowings Hedged at Fixed Rates (%)81.2%66.0%


FCT’s debt profile metrics for 2Q FY2025/26 have largely improved compared to the previous quarter (1Q FY2025/26). The only notable exception is the percentage of borrowings hedged at fixed rates, which decreased from 81.2% to 66.0%. If benchmark borrowing rates continue to decline, the REIT will benefit, as 34% of its borrowings are on floating rates. However, if benchmark borrowing rates rise again, finance costs will increase, which could potentially affect the growth of the REIT’s distribution payout.

In terms of debt maturity, FCT has no borrowings maturing for refinancing in the current financial year. Over the next two financial years, the percentage of borrowings due for refinancing remains relatively low, with just 3.9% in FY2026/27 and 8.4% in FY2027/28. Nearly 90% of its borrowings will only be due for refinancing in FY2028/29 or later.

Distribution Payout to Unitholders:

1H FY2024/251H FY2025/26% Variance
Distribution Per Unit (S$’cents)6.054 cents6.136 cents+1.4%

If you are a unitholder of FCT, do take note of the following dates on the REIT’s latest distribution payout:

Ex-Date: 04 May 2026
Record Date: 05 May 2026
Payout Date: 29 May 2026

CEO Mr Richard Ng’s Comments & Outlook (from the REIT’s Press Release)

“FCT’s portfolio has delivered a strong performance in 1HFY26, supported by the strength of our suburban retail portfolio. Committed occupancy currently stands at 99.8%, while rental reversions and tenant sales remained healthy across our malls. 

We are also making good progress on our efforts to drive enhancement growth through AEIs to improve asset yields and support sustainable income growth. Over 88% of AEI space at Hougang Mall has been committed as we work towards completion in September 2026. AEI works at NEX to unlock additional retail and office space will commence next month, which will further strengthen its position as a key retail hub in the Northeast region.

Looking ahead, we remain confident on the outlook for Singapore’s suburban sector, underpinned by long-term structural drivers and a resilient portfolio. However, given the uncertain operating environment, we will closely monitor market conditions and exercise prudent cost and capital management. We will continue to execute on our growth strategy with discipline, and focus on refreshing our malls and optimising portfolio performance.”

Closing Thoughts

FCT has delivered a very strong overall performance for 1H FY2025/26, with its financial results showing robust growth. Both gross revenue and net property income increased by over 20%, driven by contributions from the newly acquired Northpoint City South Wing and higher passing rents across its other malls.

The occupancy of its retail malls remains exceptional, at a minimum of 99%, highlighting the resilience of its assets. Additionally, the REIT recorded a positive rental reversion of +6.5% for new and/or renewed leases, which will support the growth of its financial performance in the upcoming quarters.

In terms of its debt profile, FCT has seen slight improvement. Its aggregate leverage stands at a healthy 40.0%, and there are no borrowings due for refinancing in the second half of FY2025/26. This is in addition to the REIT having a minimal amount of borrowings maturing in the next 2 financial years (FY2026/27 to FY2027/28).

However, one key point to note is the significant decline in the percentage of borrowings hedged at fixed rates, which plunged from 81.2% in 1Q FY2025/26 to 66.0% in 2Q FY2025/26. If benchmark borrowing rates increase in the near-term, the higher financing costs could impact the growth of the REIT’s distribution payout.

Related Documents

Press Release
Financial Statements
Presentation Slides

Disclaimer: At the time of writing, I am a unitholder of Frasers Centrepoint Trust.

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