[SINGAPORE] Frasers Centrepoint Trust (FCT) on Thursday (Oct 22) posted a distribution per unit (DPU) of S$0.06214 for the second half ended September, up 2.6 per cent from S$0.06059 in the previous corresponding period.
This raised total DPU for FY2026 to S$0.1235 - a new-high.
Distributable income rose 3.3 per cent to S$127.2 million for H2, from S$123.1 million in the same period the year before.
Revenue was up 8.7 per cent at S$223 million for the half-year, from S$205.2 million before.
Net property income rose 11.5 per cent to S$160.9 million for the half-year period, from S$144.3 million in the year-ago period.
The increases in revenue and net property income were driven by contributions from Northpoint City South Wing, which was acquired in May 2025, as well as higher passing rents across most malls.
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For the full-year, distributable income rose 8.2 per cent year on year to S$252.2 million. Revenue was up 14.2 per cent on year at S$444.9 million, while net property income grew 15.7 per cent year on year to S$321.7 million.
Richard Ng, CEO of FCT’s manager, said the trust’s FY2026 performance was underpinned by healthy operating metrics, alongside its proactive capital recycling strategy and asset enhancement initiatives.
He noted that the divestment of White Sands for S$467 million created debt headroom for FCT to reinvest part of the proceeds into the joint development of the Bayshore Drive site, providing a new growth driver and potential future acquisition opportunity.
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The trust also completed enhancement works at Hougang Mall in September this year. The first phase of AEI at Nex is slated for completion by end-2026. Enhancement works at Causeway Point are expected to begin in the second quarter of 2027.
Aggregate leverage fell to 38.7 per cent as at Sep 30, compared with 40.4 per cent as at end-June this year. Gearing would stand at 36.8 per cent after repaying borrowings with divestment proceeds from White Sands after the close of the financial year.
Group short-term borrowings were cut to S$111 million from S$404 million. The average cost of borrowing was 3.1 per cent in Q4 FY2026, with full-year cost of borrowing at 3.2 per cent compared to 3.8 per cent in FY2025. The interest coverage ratio improved to 4.37 times as at end-September.
The manager anticipates continued resilience in Singapore’s suburban retail market, where positive demand and supply dynamics underpin organic DPU growth through healthy rental reversions and a strong committed occupancy.
FCT’s retail portfolio recorded committed occupancy of 99.7 per cent as at end-September, while rental reversions averaged a positive 6.6 per cent for FY2026. Shopper traffic and tenants’ sales rose 1.8 per cent and 1.3 per cent year on year, respectively.
“Supported by a prudent balance sheet with current aggregate leverage comfortably below 40 per cent, FCT is well-positioned to optimise its capital efficiency and build on its record FY26 DPU to drive the next phase of sustainable long-term DPU growth,” said the manager.
FCT’s latest distribution for H2 will be paid on Nov 27, after books closure on Oct 30.
Units of FCT ended Wednesday 1 per cent or S$0.02 higher at S$2.06.