Frasers Centrepoint Trust (SGX: J69U), or FCT, is a Singapore-focused suburban retail real estate investment trust (REIT). It owns or jointly owns four of Singapore’s top ten largest prime suburban malls, namely NEX, Northpoint City, Causeway Point and Waterway Point. Despite facing higher interest rates over the past two years, FCT’s robust operational performance, driven by high occupancy rates, and positive rental reversion, has enabled it to maintain a stable and resilient financial performance. While its average cost of debt surged from 2.5% in the fiscal year ended 30 September 2022 (FY 2022) to 4.1% in FY 2024, FCT has managed to contain the drop in its distribution per unit (DPU) to less than 2% over the same period. Here’s why FCT stands a chance at increasing its DPU for this financial year.

Strong demand for FCT shop spaces

FCT’s malls are situated at convenient locations near residential areas with excellent public transportation connectivity, driving robust demand for their shop spaces....