In a report released yesterday, Lock Mun Yee from CGS-CIMB reiterated a Buy rating on Frasers Centrepoint (FRZCF – Research Report), with a price target of S$2.70.
Lock Mun Yee’s rating is based on several positive indicators for Frasers Centrepoint Trust (FCT). The company reported a significant year-on-year increase in both gross revenue and net property income for the first half of FY25, driven by high portfolio occupancy and positive rental reversions. The completion of asset enhancement initiatives at key properties like Tampines 1 has also contributed to this growth.
Additionally, FCT’s gearing ratio has improved, and the cost of debt is expected to decrease further, enhancing financial stability. The proposed acquisition of Northpoint City South Wing is anticipated to bolster income streams, and the company’s strong position in the suburban retail market is seen as a resilient factor. These elements, combined with the potential for further operational improvements, underpin the Buy rating given by Lock Mun Yee.
Mun Yee covers the Real Estate sector, focusing on stocks such as Ascott Residence, CapitaLand Mall, and Keppel REIT. According to TipRanks, Mun Yee has an average return of -0.5% and a 40.21% success rate on recommended stocks.
In another report released today, UOB Kay Hian also maintained a Buy rating on the stock with a S$2.73 price target.