Risk Reward Update

Research evidence excerpt

Risk Reward Update

UpdateM

RiskRisk RewardReward– Frasers- CentrepointFrasers TrustCentrepoint(FCRT.SI) Trust (FCRT.SI)

Resilient Retail, Fairly Valued

PRICE TARGET S$2.20 EQUAL-WEIGHT THESIS

mall play. FCT is Singapore'sBase case, 50/50 weights for dividend yield and price-to-book. Our target forward year ▪Suburban

dividend yield of 6.0% is 50bps below the sector average, reflecting the stock's better-than- only pure-play suburban mall (96% of AUM)

average dividend risk profile. Our target forward year P/B of 1.04x is 1.0 SD above FCT's five- REIT. Its portfolio's operational metrics have

year historical average, reflecting active asset recycling efforts and inorganic growth been fairly resilient.

potential. ▪Stable growth potential. Anchored by a

relatively resilient portfolio, FCT's DPU S$2.60

growth across F25-27 should be broadly

Consensus Price Target Distribution S$2.19 S$2.99 stable, despite rising interest costs, in our MS PT

view.Source: Refinitiv, Morgan Stanley Research Mean Morgan Stanley Estimates

are EW on the stock: We believe the ▪We

stock's valuation (steeper than the sector

average) has already priced in the above-

RISK REWARD CHART mentioned positives.

SGD S$2.60S$2.60(+15.04%)S$2.60(+15.04%)(+15.04%) Consensus Rating Distribution

80% Overweight

2.4 S$2.26S$2.26S$2.26 20% Equal-weight

S$2.20S$2.20(-2.65%)S$2.20(-2.65%)(-2.65%) 0% Underweight

MS Rating

1.8

S$1.85S$1.85(-18.14%)S$1.85(-18.14%)(-18.14%) Source: Refinitiv, Morgan Stanley Research

1.2

Risk Reward Themes

Disruption: Negative

0.6 Self-help: Positive

View descriptions of Risk Rewards Themes here

JUL '25 JAN '26 JUL '26 JUL '27

Key: Historical Stock Performance Current Stock Price Price Target

Source: Refinitiv, Morgan Stanley Research

BULL CASE S$2.60 BASE CASE S$2.20 BEAR CASE S$1.85