FCT provides updates on asset valuation, portfolio tenants' sales, shopper traffic

THE manager of Frasers Centrepoint Trust (FCT) on Friday provided updates on the trust's portfolio tenants' sales and shopper traffic, as well as the valuation of its properties.

In August 2020, FCT's portfolio tenants' sales dipped 2.2 per cent year on year (y-o-y), while shopper traffic fell 36.4 per cent from a year ago.

FCT's portfolio includes Causeway Point, Northpoint City North Wing (including Yishun 10 retail podium), Waterway Point, Changi City Point, YewTee Point, Bedok Point and Anchorpoint. In this case, the shopper traffic for Northpoint City North Wing is taken as the total traffic for Northpoint City, which includes Northpoint City South Wing.

Meanwhile, AsiaRetail Fund's (ARF) portfolio tenants' sales last month declined 0.6 per cent from last year, and shopper traffic was 38.6 per cent lower on a y-o-y basis, the manager said.

The five retail properties in ARF's portfolio are Tiong Bahru Plaza, White Sands, Hougang Mall, Century Square and Tampines 1.

On Sept 3, FCT proposed to raise up to S$1.39 billion in equity through a private placement and/or a preferential offering to fund its acquisition of the remaining 63.1 per cent of ARF for some S$1.06 billion.

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Following the announcement, Moody's Investors Service affirmed the real estate investment trust's (Reit) Baa2 issuer rating and changed the outlook on the rating to stable from negative.

Separately, S&P Global Ratings affirmed its "BBB" long-term issuer credit ratings on FCT and its "BBB" issue ratings on the outstanding senior unsecured notes that the Reit guarantees.

Among other things, S&P Global Ratings expects FCT's portfolio quality to "improve significantly" after its proposed acquisition of the remainder of ARF, formerly known as the PGIM Real Estate AsiaRetail Fund.

In another regulatory filing on Friday, FCT noted that the latest valuations of its properties have been approved by its board of directors on Sept 24 and will be reflected in the Reit's financial statements for the financial year ending Sept 30, 2020.

As at Sept 15, Causeway Point was valued at S$1.305 billion, Northpoint City North Wing was valued at S$771.5 million, Yishun 10 Retail Podium was valued at S$35 million, while Anchorpoint was valued at S$110 million.

In addition, YewTee Point had a valuation of S$190 million, Changi City Point registered a valuation of S$338 million, and Waterway Point had a valuation of S$1.3 billion. FCT owns a 40 per cent stake in Sapphire Star Trust which holds Waterway Point, and FCT's interest amounts to S$520 million.

The valuation of Bedok Point was recorded at S$108 million, based on the sale price in the proposed divestment to FCT sponsor Frasers Property.

The appointed valuers are CBRE, Colliers International Consultancy & Valuation (Singapore), Savills Valuation and Professional Services (S), and Jones Lang LaSalle Property Consultants.

FCT will hold its extraordinary general meeting at 10am on Sept 28. Unitholders will vote on five resolutions, including the proposed ARF transaction, the proposed equity fundraising, and the proposed divestment of Bedok Point.

As at the midday break on Friday, FCT units were down S$0.02 or 0.8 per cent to S$2.51.