Is Frasers Centrepoint Trust A Good Buy In 2026? [Fundamental Analysis]

In this article, we'll conduct a fundamental analysis and review of Frasers Centrepoint Trust and its suitability to achieve the following investment objective: To deliver a stable dividend yield of 5% to 6% per year while having high capital preservation ability.

Information Is Accurate Up To Jan 25

Business Description

Frasers Centrepoint Trust is a Retail REIT that was listed in 2006 and owns 10 properties in Singapore.

What I Like About FCT:

• Very stable distribution (Fig 8)
  

• 100% of their assets are in Singapore
  

• Management has a very clear strategy and track record
  

• Portfolio occupancy and rental reversion is resilient (Fig 11 & 12)

What I Do Not Like About FCT:

• -

Updates From Recent Performance (FY 2025)

General Comments:

• Gross Revenue and Net Property Income increased by 10.8% and 9.7% due to the contributions from the acquisitions and completed AEI in Tampines Mall. Despite a higher unit base, DPU grew by 0.6% due to a stronger operating performance from existing assets.

  
  

• Acquired Northpoint City South wing on 25 March, funded by equity fund raising. Hougang Mall AEI commenced in April and divested the Yishun 10 Retail Podium in September.

  
  

• Occupancy dropped by 1.6% to 98.1% due to the exit of Cathay Cineplex. Excluding the exit, the portfolio's committed occupancy would have remained at 99.9%.

  
  

• Net asset value decreased by 6cents to $2.23 at the back of a larger amount of units due to the equity fund raise done for the acquisitions.

  
  

Positive Headwinds:

• Hougang AEI is expected to uplift DPU via an additional 11,000 square feet of net lettable area. As of now, 90% of the overall AEI space has been pre-committed, with 40% comprising new-to-Hougang concepts. That said, the full impact of this will only be seen in FY2027 as the AEI is set to complete by 3Q 2026.

  
  

• The government’s plan to develop further residential housing in the north (50,000 homes to be added over the near and long term) creates a steady footfall for malls such as Northpoint City and Causeway Point.

Negative Headwinds:

• The expected commencement of the JB-Singapore RTS at the end of 2026 may result in potential loss of sales for Singapore retailers, though the silver lining is that the malls are well-positioned to also capture the potential higher footfall in the northern area, despite the potential headwinds and competition from the JB retail scene.

  
  

Download Full Report On Telegram

and continue reading my independent analyst report which will provide you with a detailed look at the fundamentals of the stock and a range of price targets to help you out with your investment decision for Frasers Centrepoint Trust:

*Join the channel → click on the channel name → under files → download the report you want!

If you would like to learn about REIT investing, you can find my entire methodology in my eBook: Retire With REITs here:

If you are looking for personalized financial advice, I offer a 1-to-1, fee-only consultation where you will receive personalized strategies to design, implement and manage a profitable REIT portfolio. You can find out more about it here:

Connect with me on social media platforms to receive updates on future content! You can also slide into my DMs if you have any questions :)

---

Disclaimer:

This article is meant to be the opinion of the author

This article is for information purposes only

This article should not be seen as financial advice

This advertisement has not been reviewed by the Monetary Authority of Singapore