Overview

Frasers Centrepoint Trust's portfolio comprises nine suburban retail malls and one office building, all located in Singapore. The nine retail malls are (in order of net lettable area): Causeway Point, Waterway Point (FCT holds 40%-interest), Tampines 1, Northpoint City North Wing (inclusive of Yishun 10 retail podium), Tiong Bahru Plaza, Century Square, Changi City Point, Hougang Mall and White Sands. The office building is Central Plaza, which is connected to the retail mall Tiong Bahru Plaza.  

FCT's properties are located next to or near the MRT stations and bus interchanges and in populous residential areas. The retail malls enjoy high shopper traffic comprising residents and the commuters. FCT strives to offer pleasant and comfortable shopping experiences for all its shoppers that will encourage them to keep coming to its malls. FCT strives to be a fair and value-adding landlord through competitive lease rates, upkeep and enhancement of its retail and office properties, and be the preferred choice of tenants and stakeholders.

Overview

Investment in Hektar

As at 30 September 2022, FCT holds 30.53% of the units in Hektar Real Estate Investment Trust (“H-REIT”). H-REIT, an associate of FCT, is a retail-focused REIT in Malaysia listed on the Main Market of Bursa Malaysia Securities Berhad.

H-REIT’s property portfolio consists of six shopping centres in the Northern, Central and Southern Regions of Peninsular Malaysia. These six shopping centres are Subang Parade (Selangor), Mahkota Parade (Melaka), Wetex Parade (Johor), Central Square (Kedah), Kulim Central (Kedah) and Segamat Central (Johor).

The properties in H-REIT portfolio have a total NLA of approximately 2.0 million square feet and a combined value of approximately RM1,164.5 million (or approximately S$361 million assuming a currency exchange rate of approximately S$1:MYR 3.229 as at 30 September 2022).

Investment in Hektar

Hektar Property Profile1

  Subang Parade Mahkota Parade Wetex Parade Central Square Kulim Central Segamat Central
State Selangor Melaka Johor Kedah Kedah Johor
Title Freehold Leasehold
(expires 2101)
Freehold Freehold Freehold Leasehold
(expires 2116)
Net Lettable Area (Retail),
square feet as at 31 Dec 2021
523,487 521,142 175,014 310,564 299,781 211,910
Tenancies as at 31 Dec 2021 89 90 60 45 67 33
Occupancy as at 31 Dec 2021 82.5% 87.1% 89.9% 85.9% 94.0% 67.3%
Visitor Traffic FY2021 (million) 4.0 2.8 1.9 1.9 1.9 0.7
Acquisition Price (million RM) 280.0 232.0 117.5 83.0 98.0 104.0
Valuation (million RM) as at 31 Dec 2021 423.0 323.5 142.0 92.0 129.0 57.0
Gross revenue (RM million) 30.4 28.1 12.7 8.5 13.3 3.5
Net property income (RM million) 17.2 11.4 6.7 3.7 8.4 (0.5)

HEKTAR REIT’S TOP 10 TENANTS#

The top ten tenants in the portfolio contributed approximately 37.7% of total monthly rental income, providing a diversified revenue base. Aside from the top tenant, Parkson, which contributed approximately 11.7% of monthly rental income, no other tenant contributed more than 10%.

Tenant Trade Category NLA (sq ft) % of total NLA % of monthly rental income*
Parkson Department Store/Supermarket 252,515 12.4% 11.7%
The Store Department Store/Supermarket 273,198 13.4% 8.8%
GSC Leisure & Entertainment/Sports & Fitness 88,670 4.3% 2.5%
Mr D.I.Y Houseware & Furnishing 74,301 3.6% 2.4%
Seleria Food Court Food & Beverage/Food Court 42,105 2.1% 2.4%
Watson’s Health & Beauty 11,965 0.6% 2.3%
Guardian Health & Beauty 12,164 0.6% 2.1%
Giant Superstore Department Store/Supermarket 72,140 3.5% 2.0%
MM Cineplexes Leisure & Entertainment/Sports & Fitness 75,928 3.7% 1.8%
KFC Food & Beverage/Food Court 15,792 0.8% 1.7%
Top 10 Tenants (by monthly rental income) 918,778 45.0% 37.7%
Other Tenants 1,123,120 55.0% 62.3%
Total 2,041,898 100.0% 100.0%
    1 Source: H-REIT Annual Report 2021 and its website at http://www.hektarreit.com/

PORTFOLIO TENANCY MIX1
As at 31 December 2021

The largest rental contributors to the portfolio are tenants from the Department Store/Supermarket and the Food & Beverage/Food Court segments. Both segments contributed 45% of the portfolio’s total rental income. In terms of NLA occupancy, Department Store/Supermarket tenants continue to dominate the portfolio by taking up 40% of all available NLA.

Segment As % of overall portfolio NLA As % of portfolio rental income
(based on monthly rental income in December 2021)
Department Store/Supermarket 40% 24%
Food & Beverage/Food Court 12% 21%
Fashion & Footwear 11% 20%
Health & Beauty 4% 12%
Leisure & Entertainment/Sports & Fitness 18% 8%
Electronics & IT 4% 7%
Homewares & Furnishing 8% 4%
Gifts/Books/Toys/Specialty 2% 3%
Education/Services 1% 1%
    Note: Numbers may not add up to 100% due to rounding

PORTFOLIO LEASE EXPIRY PROFILE1
As at 31 December 2021

A total of 291 tenancies will expire in 2022 representing approximately 34.2% of NLA and 55.1% of monthly rental income as at 31 December 2021.

For year ending 31 December No. of tenancies expiring NLA of tenancies expiring (sq ft) NLA of tenancies expiring as % of total NLA As % of monthly rental income*
FY2022 291 698,353 34.2% 55.1%
FY2023 50 596,002 29.2% 25.5%
FY2024 43 440,421 21.6% 19.4%
    * Based on monthly rental income for December 2021.

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