Frasers Centrepoint Trust (FCT) is a Singapore-based real estate investment trust (REIT) that focuses on suburban retail malls. Established in 2006 and listed on the Singapore Exchange, FCT owns and manages a portfolio of well-located malls that cater primarily to residential catchment areas with strong shopper traffic.
Its key assets include Causeway Point, Northpoint City North Wing, Waterway Point (50% stake), Tampines 1, Century Square, White Sands, and Hougang Mall. These malls benefit from steady consumer demand due to their essential retail mix, proximity to transport hubs, and strong tenant base, which includes supermarkets, food & beverage outlets, and essential services.
In recent years, FCT has focused on strengthening its portfolio by divesting non-core assets and acquiring stakes in high-performing malls, such as its increased ownership in Waterway Point. Given the resilience of Singapore’s suburban retail sector, FCT remains an attractive option for income-focused investors seeking stable dividends with potential long-term appreciation.
Here are 10 things I learned from the 2025 Frasers Centrepoint Trust AGM.
1. FCT’s gross revenue for FY24 declined by 4.9% year-on-year to $351.7 million, while net property income (NPI) decreased by 4.6% to $253.4 million. The declines were primarily attributed to the lower contribution from Changi City Point, which was divested in October 2023, as well as reduced income from Tampines 1 due to asset enhancement initiative (AEI) works. However, excluding these factors, FY24 gross revenue and NPI would have increased by 3.5% and 3.4% year-on-year, respectively.
2. FCT’s distribution per unit (DPU) for FY24 was 12.042 cents, representing a 0.9% decline from 12.150 cents in FY23. The decrease was primarily due to a larger base of total issued and issuable units compared to the previous year, as well as a lower net property income (NPI). However, the impact was partially offset by higher distributions from joint ventures. As of 20 February 2025, FCT’s full-year dividend yield stands at 5.71%.
3. FCT was included in the Straits Times Index (STI), the benchmark index of the 30 largest listed companies on the Singapore Exchange, on 18 March 2024. This milestone reflects FCT’s steady growth and strong market position over the years. Its inclusion in the STI is expected to enhance its visibility among both local and global investors.
4. FCT’s aggregate leverage stood at 38.5% as of 30 September 2024, representing a 0.8 percentage-point decrease from 39.3% a year earlier. Interest rate movements and rising operating expenses will remain key factors influencing FCT’s performance. Barring unforeseen circumstances, the average cost of borrowings is expected to remain around the low 4.0% level for FY25.
5. FCT’s portfolio maintained a strong committed occupancy of 99.7% as of 30 September 2024, remaining stable year-on-year. Tampines 1 successfully completed its AEI in August 2024, achieving full committed occupancy at 100.0% for the entire mall. Other properties within the portfolio also continued to uphold high occupancy levels, reflecting the resilience and strong demand for FCT’s well-located suburban retail assets.
6. FCT’s portfolio maintains a well-spread lease expiry profile, minimizing concentration risk in any single financial year. Leases expiring in FY25 and FY26 account for 22.7% and 29.1% of the portfolio’s gross rental income (GRI), respectively. As of 30 September 2024, the weighted average lease expiry (WALE) stood at 2.1 years by net lettable area (NLA), up from 2.0 years in FY23, and 2.0 years by GRI, compared to 1.8 years in the previous year. This diversified lease structure enhances income stability and mitigates renewal risks.
7. Citing a report on slow retail growth in Singapore, a unitholder questioned FCT’s resilience against rising overseas shopping, stagnant income growth, online purchases, F&B sector struggles, and the upcoming Johor Bahru-Singapore RTS.
CEO Richard Ng acknowledged the validity of the report’s projections but emphasized the distinction between general retail sales and the suburban retail market. He highlighted FCT’s 20% sales growth from 2019 to 2024, noting that a milder trajectory is expected as the base grows.
Addressing online sales, he pointed out that while online transactions doubled from 8% to 16% over the same period, FCT still achieved strong growth, demonstrating that digital and physical retail can coexist.
On the F&B sector, he clarified that FCT malls cater to casual, affordable dining rather than high-end restaurants, with strong demand reflected in full occupancy and increased capacity in upcoming asset enhancements.
Regarding concerns over Singaporeans shopping in Johor Bahru via the RTS, the CEO noted that this trend is long-standing and has not hindered Causeway Point’s continued sales growth. He argued that the RTS would primarily shift current travellers from private transport rather than significantly increasing cross-border shopping. Additionally, the CEO highlighted the planned addition of 10,000 housing units in the area and Woodlands MRT’s strategic importance as an interchange, both of which would drive foot traffic to Causeway Point.
However, he cautioned that factors such as labour costs and sustained low rents in Malaysia could shift dynamics in the future. He emphasized FCT’s focus on adapting to market needs and differentiating itself through place-making initiatives to foster a strong community and customer loyalty.
8. The unitholder then asked about the possibility of expanding into overseas assets, particularly in Johor Bahru, given the potential migration of Singaporeans due to favourable exchange rates and lower living costs.
The CEO outlined key considerations for expanding into foreign assets, emphasizing the need for a strong retail platform to compete with established players in overseas markets. He highlighted potential challenges such as foreign exchange fluctuations and the loss of tax transparency benefits that Singapore REITs enjoy, which could impact returns. He reassured that the board would continue reviewing FCT’s strategy with unitholders’ interests in mind when evaluating future growth opportunities.
9. Another unitholder expressed his preference for FCT to focus on Singapore assets rather than expanding into Johor Bahru. He then inquired about the potential competition for Hougang Mall, given its smaller size and lowest revenue per net leasable area in the portfolio and sought the management’s view on how upcoming developments in the area might impact the mall despite its planned asset enhancement initiative.
The CEO acknowledged the possibility of competing mixed developments near Hougang Mall but emphasized that the area’s strong market and catchment can support increased retail supply. He explained that the planned AEI is necessary due to the mall’s age and lack of major upgrades, with an expected 7% return on investment, ensuring its competitiveness against newer malls.
10. A unitholder asked about FCT’s plans for Northpoint City mall, highlighting its strong performance and large catchment of 200,000 residents in Yishun with limited alternatives. He asked whether FCT intended to increase its stake in the mall’s South Wing, given the mall’s strategic position. Additionally, he asked about potential AEI works for Yishun 10, which is located next to Northpoint City mall and houses a cinema.
The CEO acknowledged Northpoint City North Wing’s strong performance with full occupancy, high rental reversions, and strong sales. While discussions with FCT’s sponsor, Frasers Property Limited, are ongoing, any acquisition plans must align with the REIT’s strategy. Although FCT does not have a right of first refusal for the South Wing, it remains interested in acquiring it if it becomes available.
Regarding Yishun 10, the CEO clarified that FCT only owns the ground floor retail units, while the cinema operator owns most of the building. While there were past plans to redevelop and integrate it with Northpoint City, any future developments would require engagement with the cinema operator.
The fifth perspective
Frasers Centrepoint Trust continues to strengthen its position as a leading suburban retail REIT in Singapore, with a resilient portfolio and strategic asset enhancements to drive long-term growth. Despite macroeconomic headwinds, FCT has maintained stable occupancy levels, prudent financial management, and steady distributions to unitholders.
The 2025 AGM highlighted key investor concerns, including competition from Johor Bahru, evolving consumer trends, and future growth opportunities. The management reiterated its commitment to a Singapore-focused strategy, leveraging strong catchment areas and sustainable retail demand.
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