Frasers Centrepoint Trust (FCT), a major owner of suburban retail malls in Singapore, reported an impressive 99.9% occupancy rate for its portfolio in the third quarter of FY25, excluding Hougang Mall, which is undergoing asset enhancement initiatives (AEI). The trust, which owns 10 suburban malls and one office building, is also planning a holistic AEI for Northpoint City, following the acquisition of additional levels in Yishun 10 by its sponsor, Frasers Property, according to a UOBKayHian report.
FCT’s suburban malls have benefited from the disbursement of Community Development Council (CDC) vouchers, which contributed to a 4.4% year-on-year increase in tenant sales. The trust has also introduced 59 new-to-portfolio tenancies this year, further enhancing its retail offerings. The completion of AEI at Tampines 1 and the introduction of new tenants have driven growth in shopper traffic by 2.1% year-on-year.
The trust’s financial health remains robust, with a manageable aggregate leverage of 40.4% as of June 2025, and an average cost of debt reduced to 3.7% in Q3 FY25. The acquisition of Northpoint City South Wing (NCSW) for $1,133m (S$1,133m) is expected to expand FCT’s portfolio valuation by 21% to $6.4b (S$6.4b), increasing its market share of suburban malls to 10.3%.
FCT’s strategic focus on dominant suburban malls is evident in its plans for Northpoint City, where it aims to unlock value through AEI by optimising tenant mix and enhancing retail space. The trust maintains a positive outlook, with expectations of continued positive rental reversions and a distribution yield of 5.8% for FY26.
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