Frasers Centrepoint Trust released the presentation of the results for the first half of the financial year 2024, which ended on 31 March 2024.
I looked to see if everything was sunshine and rainbows or if there was anything worth worrying about.
Table of ContentsThe 2 Important Things First – What’s The Drag?
I noted two things that are a recurring theme in the results presentation.
Firstly, the inferior assets that were divested last year have led to lower property income received.
Although much of the capital has been put to good use through the acquisition of another 24.5% NEX, it will take time before the full contribution from the 50% ownership of NEX is reflected in the results.
Secondly, upgrading works in batches are ongoing at Tampines 1, which will continue to impact rental income.
Likewise, the full benefits of the Tampines 1 asset enhancement initiative will take time to be reflected in the results.
Although the rest of the FCT portfolio is performing well, it isn’t significant enough to counter the negative impact of these two to carry the entire FCT portfolio.
October 2023 – Divestment of Changi City PointMarch 2024 – Acquisition of an additional 24.5% of NEX completed (total of 50%)September 2024 – Tampines 1 AEI targeted completion date (99% of AEI spaces committed)
Realistically speaking, we will need to wait until the 1H 2025 update to see the full contributions of Tampines 1.
Otherwise, Mostly Healthy Numbers
Having mentioned the above, we can see that the report makes a lot of effort to differentiate the results by excluding Changi City Point and Tampines 1 for a clearer (and more positive) picture.
The reality is that DPU has declined from 6.130 cents (1H2023) to 6.022 cents (1H2024), which, of course, we
