Frasers Centrepoint Asset Management Ltd., the manager of Frasers Centrepoint Trust (FCT), has announced a 1.4% year-on-year increase in Distribution per Unit (DPU) for the first half of the financial year 2026, reaching 6.136 cents. This growth is attributed to the robust performance of its suburban retail portfolio, with committed occupancy at 99.8% and healthy rental reversions.
The trust’s gross revenue surged by 20.3% to $221.9m, driven by contributions from the Northpoint City South Wing acquisition and higher rents across its malls. Net property income also rose by 20.2% to $160.8m. The distribution to unitholders increased by 13.6% to $125m.
Chief Executive Officer Richard Ng highlighted the progress in Asset Enhancement Initiatives (AEIs) at Hougang Mall and NEX, which aim to improve asset yields and support sustainable income growth. Over 88% of the AEI space at Hougang Mall is committed, with completion expected by September 2026. AEI works at NEX will commence in May 2026.
FCT’s financial position remains strong, with an aggregate leverage of 40% and a well-staggered debt maturity profile. Approximately two-thirds of its borrowings are hedged to fixed interest rates. The trust’s proactive cost management includes fully hedged electricity costs for FY26.
Looking forward, FCT plans to continue its growth strategy through strategic acquisitions and optimising portfolio performance. Despite macroeconomic uncertainties, the trust remains confident in the resilience of Singapore’s suburban retail sector, supported by population growth and rising household incomes.
