Frasers Centrepoint: Resilient Growth and Strong Financial Position Justify Buy Rating

Darren Chan, an analyst from Phillip Securities, maintained the Buy rating on Frasers Centrepoint (FRZCF – Research Report). The associated price target is S$2.44.

Darren Chan has given his Buy rating due to a combination of factors that highlight the resilience and growth potential of Frasers Centrepoint’s portfolio. The company’s defensive earnings from suburban malls are supported by a high occupancy rate of 99.5%, which enhances its bargaining power in lease negotiations. This is further bolstered by a low occupancy cost, allowing room for rental growth.
Additionally, the company has demonstrated strong rental reversions, averaging 9% in the first half of 2025, with a notable 13.3% increase at Tampines 1 following asset enhancement initiatives. Tenant sales and shopper traffic have also shown healthy year-on-year growth, and government support measures are expected to sustain this momentum. Furthermore, the lower cost of debt, with an average of 3.9% and no refinancing needs for FY25, positions the company well financially. These factors collectively contribute to a positive outlook for Frasers Centrepoint, justifying the Buy rating.

According to TipRanks, Chan is a 2-star analyst with an average return of -0.9% and a 43.18% success rate. Chan covers the Real Estate sector, focusing on stocks such as City Developments, Frasers Centrepoint, and Ascott Residence.

In another report released on April 30, UOB Kay Hian also maintained a Buy rating on the stock with a S$2.73 price target.