Frasers Centrepoint Trust (FCT) has reported a committed occupancy rate of 98.1%, unchanged q-o-q for the 1QFY2026 ended Dec 31, 2025. After the first quarter of this year, the REIT’s occupancy rate will increase to 99.9% with the cinema spaces at Causeway Point and Century Square successfully backfilled.
FCT’s weighted average lease expiry (WALE) stood at 1.7 years by net lettable area, down from 1.8 years in the quarter before. By gross rental income, the REIT’s WALE was 1.8 years, unchanged q-o-q.
During the 1QFY2026, FCT’s aggregate leverage rose to 40.3% from 39.6% as at the end of September 2025. Interest coverage ratio stood at 3.54 times this quarter, up from 3.46 times three months ago.
Year to date, FCT’s average cost of debt stood at 3.5%, down from 3.8% as at Sept 30, 2025. Undrawn facilities as at Dec 31, 2025, stood at $839.5 million.
In its business update, FCT noted that retail sales and rents remained “resilient” during the quarter amid Singapore’s stronger-than-expected GDP growth. In 2025, GDP expanded by 4.8% while 4Q2025 GDP grew by 5.7 y-o-y.
Retail rents in the Orchard Road prime area grew by 2% y-o-y while suburban prime retail rents rose by 1.6% y-o-y.
See also: Suntec REIT reports FY2025 DPU of 7.035 cents, up 13.6% y-o-y
Looking ahead, FCT is upbeat on Singapore’s suburban retail space given limited new supply, population growth and new home additions. It is also bullish about the growth from the new Johor Bahru-Singapore RTS; FCT expects Causeway Point in Woodlands to “transform into a regional mall” upon the commencement of the RTS.
The REIT will also be conducting several asset enhancement initiatives (AEIs). The one at Hougang Mall is slated to be completed by September this year while the AEI at Nex will commence in 2Q2026.
Units in FCT closed 1 cent lower or 0.441% down at $2.26 on Jan 23.
