• No financials were provided in this 3Q26 business update. Retail portfolio occupancy declined marginally by 20bps QoQ to 99.6% due to tenant churn as FCT optimised its tenant mix. Shopper traffic increased by 2.4% YoY, while tenants’ sales grew a modest 0.2% YoY, reflecting the impact of tenancy churn and ongoing tenant refresh initiatives.
• FCT will divest its smallest mall, White Sands, for S$467mn, representing an 8.4% premium to valuation and a 4.6% exit yield. In addition, FCT will hold a 50% stake in the retail component of the Bayshore Drive integrated development (comprising ~170,000 sqft of retail NLA costing S$613mn on a 100% basis). The project is expected to deliver a 5% yield on cost and is scheduled for completion by end-2030. We estimate it could increase DI by c.3% upon stabilisation. 
• Maintain BUY with an unchanged TP of S$2.70 and no changes to our forecasts. We expect FY26e rental reversions to remain healthy at +5%, supported by limited new retail supply and resilient tenant demand. FCT remains our top pick in the retail sub-sector, underpinned by its defensive suburban mall portfolio anchored by essential services, which should continue to perform well amid global uncertainties. Organic growth is expected to be driven by completed AEIs, supporting higher asset yields and sustainable long-term income growth. FCT's maiden Bayshore retail development adds a new long-term growth driver. FCT is trading at an attractive forward FY26e dividend yield of 5.5%.

Overview BLOKS is a leader in China’s assembly character toys market. The company holds over 500 patents, possesses original IP capabilities, and has non-exclusive licenses for approximately 50 well-known IPs. Its product positioning is “high quality at a reasonable price.” Leveraging its product strength and supply chain advantages, BLOKS maintains cost competitiveness while continuously expanding its product categories. The company has established a multi-channel sales network, and since 2022, has primarily focused on offline channels centered on distributors. According to...
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Overview POP MART is primarily engaged in the design and development of trendy toys. It operates a comprehensive platform covering the entire industry chain of intellectual property (IP) for trendy toys, with businesses including IP incubation and operation, trendy toys and retail, theme park and experiences, and digital entertainment. The company’s products include blind boxes, figurines, ball-jointed dolls (BJD), MEGA, plush toys, and derivatives, among others. Its self-developed products primarily feature artist-owned IPs such as THE MONSTERS, MOLLY, SKULLPANDA, and...
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