For those who are looking to invest in a REIT where it derive all of its revenue in Singapore, then Frasers Centrepoint Trust (SGX: J69U), or FCT, is one you may consider.

Listed on the Mainboard of the Singapore Exchange in July 2006, and subsequently included in the benchmark Straits Times Index (STI) in March 2024, FCT focuses on investing in retail properties located across Singapore’s suburban areas, making it the largest owner of suburban retail space in the country.

Currently, its portfolio comprise of 9 retail properties and 1 office property (which was included following the acquisition of the remaining 63.1% stake in AsiaRetail Fund back in September 2020), with a total value of approximately S$8.3 billion.

Since the announcement of its financial results for the first half of FY2024/25 ended 31 March 2025, the REIT has completed its acquisition of Northpoint City North Wing in late May, after securing unitholders’ approval at an EGM and conducting a fund-raising exercise to finance the purchase.

Yesterday (24 July) evening, FCT released its business update for the 3rd quarter of FY2024/25 ended 30 June 2025. As the REIT provides updates its financial figures on a half-yearly basis, only the portfolio occupancy and debt profile were made available, to which you’ll find a review on in this post:

Portfolio Occupancy (2Q FY2024/25 vs. 3Q FY2024/25)

FCT boasts a very strong occupancy rate for its properties, where they are all maintained at above 95%.

In the table below, you’ll find a comparison of the REIT’s portfolio occupancy profile for the current quarter (i.e., 3Q FY2024/25 ended 30 June 2025) against the previous quarter 3 months ago (i.e., 2Q FY2024/25 ended 31 March 2025):

2Q FY2024/253Q FY2024/25
Portfolio Occupancy (%)99.5%99.9%
Portfolio WALE (by NLA – years)2.0 years1.9 years
Portfolio WALE (by Gross Rent – years)1.9 years1.9 years

FCT’s portfolio occupancy further strengthened to 99.9% – apart from NEX (where the occupancy rate dipped slightly from 100% in 2Q FY2024/25 to 99.9% in 3Q FY2024/25), the other properties saw their occupancy rates remaining the same as the previous quarter, or improved.

Out of the 9 retail malls in its portfolio (including the newly acquired Northpoint City South Wing, but excluding Hougang Mall which is currently undergoing asset enhancement works), all of them are fully occupied except for NEX (99.9%), Tampines 1 (99.4%), and Tiong Bahru Plaza (99.8%). Its sole office property in Central Plaza has an occupancy rate of 97.5%.

On lease expiries, in the final quarter of FY2024/25, it has 2.3% of leases due for renewal. Looking at the next 3 financial years ahead (between FY2025/26 and FY2027/28), lease expiries are well-spread out, with an average of 30.1% of leases due for renewal each year, with the remaining 7.3% of leases due for renewal only in FY208/29 or later.

Debt Profile (2Q FY2024/25 vs. 3Q FY2024/25)

As far as FCT’s debt profile is concerned, it is also very well-managed, with its aggregate leverage being maintained at under 40% over the years. The only thing is that it has a slightly lower percentage of borrowings hedged to fixed rates – while it was a slight negative in the past, but with interest rates set to come down ahead, it is a positive, as the floating rate borrowings will benefit from the upcoming rate cut announcements.

Just like how I have reviewed the REIT’s portfolio occupancy in the previous section, in the table below, you’ll also find a comparison of FCT’s debt profile reported for the current quarter under review against that reported in the previous quarter 3 months ago:

2Q FY2024/253Q FY2024/25
Aggregate Leverage (%)38.6%42.8%
Interest Coverage Ratio (times)3.3x3.4x
Average Cost of Debt (%)3.9%3.8%
Average Term to Debt Maturity (years)3.0 years3.4 years
% of Borrowings Hedged at Fixed Rates (%)75.8%76.2%

The key highlight here is the 4.2 percentage point (pp) jump in its aggregate leverage to 42.8% – this can be attributed to the REIT’s acquisition of Northpoint City South Wing (where it was funded by a combination of equity fund raising, issuance of perpetual securities, and debt). However, if perpetual securities are included, its aggregate leverage would be at 40.4%.

Apart from that, all the other statistics remain stable.

Looking at its debt maturity profile, it does not have any refinancing obligations for the remaining quarter of the current financial year 2024/25. Over the next 3 financial years (between FY2025/26 and FY2027/28), it has a rather small percentage of borrowings due for refinancing – at 16.1%, 4.7% and 7.8% respectively. A huge chunk of its borrowings (71.4%) will only be due for refinancing in FY2028/29 or later.

Closing Thoughts

It’s no surprise that FCT’s portfolio occupancy continue to remain at a very high level (it has always been as such over the years) – as at 30 June 2025, 6 out of the REIT’s 9 retail malls are fully occupied, with the other retail malls having an occupancy rate of above 99%.

While its aggregate leverage have jumped (by 4.2pp to 42.8%) as a result of its acquisition of Northpoint City South Wing, but all the other statistics (such as its interest coverage ratio, average cost of debt, average term to debt maturity, as well as the percentage of borrowings hedged at fixed rates) continue to remain stable compared to the previous quarter. Another thing to note is that in terms of debt maturity, it only has a small percentage of borrowings due for refinancing over the next 3 financial years (between 4.7% and 16.1%), with most of its borrowings due for refinancing only in FY2028/29 or later.

With that, I’ve come to the end of my review of FCT’s latest business update for the 3rd quarter of FY2024/25. Do note that all the opinions in this post are purely mine which I’m sharing for educational purposes only, and not meant as any buy or sell calls for the REIT’s units. Please do your own due diligence before you make any investment decisions.

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

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