Frasers Centrepoint Trust - Maybank Kim Eng 2020-07-24: Vacancy Watch

FRASERS CENTREPOINT TRUST (SGX:J69U) | SGinvestors.io FRASERS CENTREPOINT TRUST (SGX:J69U)

Frasers Centrepoint Trust - Vacancy Watch


Weak quarter for FCT; prefer CMT, MCT




Lower occupancies, rental reversion mildly positive

  • Frasers Centrepoint Trust's portfolio occupancy fell q-o-q from 96.1% to 94.6% amid weaker leasing conditions. Vacancies at its four largest malls rose between 0.8-1.9% q-o-q with Causeway Point, Northpoint City North Wing and Waterway Point maintaining their occupancies above 94.4%. Occupancy at Changi City Point fell from 91.8% to 90.8%, as its tenancies were affected by the prolonged work-from-home measures.
  • Frasers Centrepoint Trust's rental reversions in 3Q20 were slightly positive according to management, which was down from a +5.2% in 2Q20. We expect a more challenging outlook for its rental reversions, and management expect lease negotiations to stretch longer.


Tenant support package topped up

  • About SGD25m in landlord’s rental rebates have been disbursed to its tenants (up from the SGD17m announced in 2Q20) to meet mandatory obligations under the new rental relief framework (to offer a two-month rental waiver for eligible tenants). It is eyeing a targeted approach to further assistance measures, and will look to improve its tenant sales.


Added to PGIM stake, further deal visibility low






Chua Su Tye Maybank Kim Eng Research | https://www.maybank-ke.com.sg/ 2020-07-24
SGX Stock Analyst Report HOLD MAINTAIN HOLD 2.45 UP 2.300



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