On 26 January 2023, Frasers Centrepoint Trust (“FCT”) have announced their 2023 first quarter business update ended 31 December 2022. The results itself are generally stable. However, there are subsequent events which changed the profile of our suburban mall retail real estate investment trust (“REIT”) when they purchased the retail property Nex and an additional 10.0% interest in Waterway Point. I have detailed in my article some of the potential impacts and key concerns relating to the acquisitions, mainly due to the increase in gearing and lowered interest coverage ratio. In the current high interest rate environment, financing the acquisitions using debt will likely decrease the DPU significantly. However over the longer term, once interest rates decrease FCT should be able to benefit from improved DPU with lower cost of debt and also an uplift in property valuation. Investors should take note of the potential impact and ensure that FCT fits their risk appetite accordingly....