Frasers Centrepoint Trust's Portfolio of Suburban Malls Underpins a Stable Income Profile
Frasers Centrepoint Trust predominantly owns a portfolio of income-producing retail properties in suburban areas across Singapore. Its malls are located in densely populated residential areas that are next to key transportation nodes. The high volume of commuter traffic generated helps to ensure a stable and recurring shopper footfall for the mall and in return drives sales growth for its tenant base. There is also limited direct competition for most of its retail properties, which helps to position it as the main mall serving the population in the vicinity. Favorable locations, high shopper footfall, and growing annual sales are highly desirable features for existing and new tenants, allowing FCT to charge premium rents relative to average market rates. With its staggered lease expiration profile and approximately 54% of its gross rental income contributed by tenants providing nondiscretionary products and essential services, we expect FCT to remain resilient throughout economic cycles.
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