Despite diverging views on Frasers Centrepoint Trust (FCT), DBS Group Research remains positive on the counter, with an unchanged ‘buy’ rating and target price of $3.

DBS analysts Geraldine Wong and Derek Tan believe that FCT’s portfolio of suburban malls anchors its ability to continue delivering growth and stability, in contrast to views on the street that suburban malls’ performance will see a dip when workers gradually head back to offices in the coming months.

The analysts project FCT’s distribution per unit (DPU) in FY2021 ending September to be around 4% higher than pre-Covid-19 levels, ahead of its peer growth rate.  Their target price of $3 implies a target yield of 4.2%.


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