On 25 July 2023, Frasers Centrepoint Trust (“FCT”) have announced their 2023 third quarter business update. There are no updates relating to the financial position and performance, however noted they have disclosed the increase in gearing and the reduction in percentage of debt hedged to fixed rate interest. This indicates that management does not want to lock in new debt in the current high interest rate environment, allowing it to fall with the market over the next few years. In the short-term however, it means that DPU will be adversely affected as interest rates continue to remain high, as seen by the continued decrease in interest coverage. Although it is not unexpected, investors should take note of the potential impact and ensure that FCT fits their risk appetite accordingly. Website: General Announcement::Business Updates For The Third Quarter Ended 30 June 2023 Photo source: https://www.theedgesingapore.com/capital/results/frasers-centrepoint-trust-reports-12-higher-dpu-12227-cents-fy2022 Background FCT is a leading developer-sponsored REIT and one of the largest suburban retail mall owners in...