Frasers Centrepoint Trust (SGX:J69U) Margin Decline Tests Bullish Growth Narrative After FY 2025 2H Results

Frasers Centrepoint Trust (SGX:J69U) has posted FY 2025 second half results with revenue of about SGD 239 million and basic EPS of SGD 0.051, setting the stage for a year where trailing 12 month revenue sits around SGD 453 million and EPS at roughly SGD 0.10. The trust has seen revenue move from about SGD 200 million in 2H FY 2024 to SGD 239 million in 2H FY 2025 while trailing 12 month EPS has hovered just above SGD 0.10, leaving investors weighing modest earnings momentum against a squeeze in net profit margins.

See our full analysis for Frasers Centrepoint Trust.

With the headline numbers on the table, the next step is to see how this earnings print lines up against the dominant narratives around growth, risk, and income that have been shaping expectations for the trust.

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Margins Slip From 49.3% To 44.1%

• Trailing net profit margin stands at 44.1%, down from 49.3% a year ago, even though trailing 12 month revenue rose from about SGD 400 million to SGD 453 million.
• Bears focus on this margin compression as a sign that higher costs and investment are biting into profitability, and the numbers give them something to point to:
  • Net income on a trailing basis is about SGD 199.9 million against SGD 452.9 million of revenue, which is a smaller slice of each revenue dollar than last year.
  • Half year net income slipped from SGD 111.3 million in 2H FY 2024 to SGD 102.9 million in 2H FY 2025, even as revenue in that half climbed from SGD 200.2 million to SGD 239.3 million.

What skeptics see as a warning on cost pressure and profitability is increasingly being tested as revenue grows faster than net income, pushing investors to question how durable current payout levels can be. 🐻 Frasers Centrepoint Trust Bear Case

Earnings Growth Slower Than Forecasts

• Over the last year, earnings grew about 1.2%, well below the roughly 4.9% five year annualised pace and the forecast 6.8% annual growth that analysts are expecting going forward.
• Supporters of the bullish view argue that current softness is just a pause before stronger growth, but the figures create a clear reality check:
  • Trailing 12 month EPS of about SGD 0.10 is only slightly above the SGD 0.11 reported for the prior trailing period, which lines up with that 1.2% growth rather than the higher long run targets.
  • Half on half, basic EPS eased from SGD 0.061 in 2H FY 2024 to roughly SGD 0.051 in 2H FY 2025, showing that near term progress is not yet matching the more optimistic multi year forecasts.

Valuation Rich Despite 15% Discount

• At a share price of SGD 2.31, the trust trades around 15% below an analyst fair value estimate, yet its price to earnings ratio is 23.5 times compared with about 18 times for peers and 15.4 times for the wider Asian retail REITs industry.
• Consensus narrative talks about solid fundamentals in suburban malls, but these valuation markers show why some investors are cautious about paying up:
  • The apparent discount to fair value contrasts with a relatively rich earnings multiple, so the market is already crediting the trust with better prospects than many listed retail REITs.
  • With net margins lower year over year and operating cash flow not fully covering debt, the premium P/E leaves less room for disappointment if the forecast 6.8% annual earnings growth does not come through.

Next Steps

To see how these results tie into long-term growth, risks, and valuation, check out the full range of community narratives for Frasers Centrepoint Trust on Simply Wall St. Add the company to your watchlist or portfolio so you'll be alerted when the story evolves.

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A great starting point for your Frasers Centrepoint Trust research is our analysis highlighting 3 key rewards and 2 important warning signs that could impact your investment decision.

See What Else Is Out There

Frasers Centrepoint Trust is wrestling with slowing earnings growth, shrinking margins, and a valuation premium that leaves little room for execution missteps.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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