Frasers Centrepoint Trust reports rental uptick but not immune from higher costs

An analyst said it keeps its neutral call on the stock.

Despite the resilient mall portfolio, Frasers Centrepoint Trust (FCT) will still face headwinds such as inflationary pressures and rising interest rates.

RHB said this amidst higher financing costs and lower margins which will offset  FCT's higher occupancy rate and rental uptick.

The analyst said the portfolio occupancy went up to 97.5% with its three large dominant malls registering such as Causeway Point, North Point City North Wing, and Waterway Point. 

Rent reversion saw a turnaround with 1.5% in fiscal year 2022 on an incoming vs outgoing basis as underlying tenant sales across its malls rose 10% above pre-pandemic levels. 

It keeps a neutral call on FCT’s stock, with a lower target price of $2.09 from $2.45.