Frasers Centrepoint Trust (FCT) had established a strong track record of delivering positive distribution per unit (DPU) growth every year since its listing in July 2006 to FY19.

However, this proud track record was broken in FY20 given unprecedented measures introduced by the Singapore government to tackle the Covid-19 pandemic, such as mandatory rental relief to tenants.

We expect a firm recovery in FY21, and believe FCT’s portfolio of suburban malls in Singapore are relatively more defensive and resilient in nature given their dominant positions in their respective catchment areas.

The addition of the PGIM ARF portfolio on a 100% basis has also boosted FCT’s scale and profile within the Singapore retail landscape. BUY.

Source: OCBC Research - 25 Jan 2021