DBS analysts Geraldine Wong and Derek Tan concurs, adding that the acquisition places FCT as the “king of suburban retail malls”. “With a dominant position in the suburban retail space supported by robust operational metrics, we remain firmly positive on FCT with forward yields of about 5.2% to 5.3% on offer,” they add.
Analysts at DBS Group Research and PhillipCapital Research have kept their “buy” and “accumulate” calls as well as raised their target prices for Frasers Centrepoint Trust (SGX:J69U
) (FCT) to $2.70 and $2.38 respectively following the trust’s recent acquisition of an additional 24.5% stake in NEX mall.
PhillipCapital analyst Darren Chan favours the transaction as NEX is a high-quality asset and a good strategic fit for FCT’s diversified prime suburban retail portfolio. Post-acquisition, FCT will be the largest prime suburban retail space owner in Singapore, enhancing its ability to attract and retain tenants, possibly offering them a wider choice of locations.
