Frasers Centrepoint Trust (FCT) saw its stock price surge 3.30% in intraday trading, as investors responded positively to the REIT's recent strategic moves. The trust has been actively implementing measures to enhance its portfolio and boost distributions, which appear to be paying off.

One of the key drivers behind FCT's stock price increase is the successful completion of its asset enhancement initiative (AEI) for Tampines 1 Mall. The REIT achieved an impressive return on investment (ROI) of over 8% from this project, which also resulted in the creation of more than 9,000 square feet of new net lettable area in prime retail locations. This enhancement is expected to contribute positively to the trust's rental income and overall property value.

Additionally, FCT recently made a significant acquisition, purchasing Northpoint City's South Wing for S$1.17 billion. This strategic move is projected to increase the REIT's fiscal 2024 distribution per unit (DPU) by 2%, demonstrating its accretive nature. The acquisition not only expands FCT's portfolio but also strengthens its market position in the Singapore retail property sector. Investors appear to be reacting favorably to these growth initiatives, driving up demand for the REIT's shares.