Frasers Centrepoint Trust Earnings: Suburban Malls to Remain Resilient During Economic Downturns

Frasers Centrepoint Trust’s first-half fiscal 2025 (ending September) net property income rose 7.3% year on year on the back of a 7.1% increase in revenue. The completion of the asset enhancement initiative at Tampines 1 largely drove the improvement, as well as higher occupancies and passing rents. As the results were in line with our expectations, we retain our fair value estimate of SGD 2.42 per unit. We think the trust is currently undervalued and expect its portfolio of high-quality suburban malls to remain resilient amid economic uncertainties, due to its exposure to nondiscretionary retail spending. FCT has benefited from vouchers and handouts provided by the Singapore government to defray daily expenses, and we expect such support to continue should economic conditions deteriorate further amid ongoing trade tensions.