Frasers Centrepoint Trust (FCT) has reported a portfolio occupancy of 99.7% for the 3QFY2024 ended June 30, 0.2 percentage points lower q-o-q but 1 percentage point higher y-o-y.
Shopper traffic during the quarter increased by 4.1% while tenants’ sales was up by 0.7%.
In the 3QFY2024, the REIT’s aggregate leverage stood at 39.1%, higher than the previous quarters’ 38.5% but lower than the 3QFY2023’s 40.2%.
FCT’s all-in average cost of debt stood at 4.1%, stable q-o-q and up from 3.9% in the 3QFY2023.
Following its asset enhancement initiative (AEI) for Tampines One, the mall achieved 100% committed occupancy. The AEI is on track to be completed by September this year with the projected return on interest (ROI) expected to outperform the 8% target.
In its update, FCT is upbeat on its prospects, citing CBRE Research’s outlook that overall prime retail rents may sustain recovery in 2024.
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During the 2Q2024, suburban prime retail rents were up by 0.3% q-o-q and 2.6% y-o-y, according to CBRE’s data. In addition, the supply of new retail malls coming in below the historical average is tipped to support the recovery of overall prime retail rents.
Units in FCT closed 1 cent lower or 0.46% down at $2.19 on July 24.
