J69U: Distribution Visibility Will Support Future Upside Despite Slight Margin Softness

Narrative Update

Analysts have nudged their price target on Frasers Centrepoint Trust slightly higher to approximately S 2.60. This reflects modestly improved long term revenue growth expectations and a marginally lower discount rate, partially offset by a slightly softer profit margin outlook.

What's in the News

• Announced a distribution of 5.963 Singapore cents per unit for 4 April 2025 to 30 September 2025, comprising taxable, tax exempt and capital components (company announcement)
• Unitholders on record with The Central Depository as at 5.00pm on 3 November 2025 will be entitled to the distribution (company announcement)
• Distribution is scheduled to be paid on 28 November 2025 to eligible unitholders (company announcement)

Valuation Changes

• The Fair Value Estimate has risen slightly from about SGD 2.60 to about SGD 2.60, reflecting a minor upward adjustment in intrinsic valuation.
• The Discount Rate has fallen marginally from about 6.94 percent to about 6.92 percent, indicating a slightly lower required return in the valuation model.
• The Revenue Growth Assumption has improved from approximately minus 0.40 percent to approximately minus 0.16 percent, pointing to a less negative long-term growth outlook.
• The Net Profit Margin Assumption has edged down from about 58.34 percent to about 57.92 percent, indicating a slightly more conservative profitability view.
• The Future P/E Multiple remains broadly unchanged, nudging up from about 30.22 times to about 30.24 times, suggesting a stable valuation multiple expectation.