SINGAPORE (July 24): The manager of Frasers Centrepoint Trust (FCT) has declared a distribution per unit (DPU) of 3 cents for the third quarter ended June, 1.3% down from the 3.04 cents DPU reported in the same period a year ago on lower revenue.
Revenue for 3Q17 was $43.6 million, down 3.3% y-o-y from the $45 million registered a year ago due to the trust’s ongoing asset enhancement initiative (AEI) works at Northpoint, which resulted in a loss of revenue from planned vacancies for the property.
However, the manager says higher revenue from Causeway Point as well as additional contribution from Yishun 10 Retail Podium has helped to mitigate the revenue decline.
Due to the write-back of provisions of property tax, property expenses for 3Q totalled $12.8 million, 7.8% lower than the $13.8 million posted a year ago.
As a result of the above, net property income (NPI) for the quarter was $30.8 million, 1.3% down from $31.2 million a year ago.
The portfolio occupancy of FCT’s properties as at end-June was 87.1%, lower than the 90.8% portfolio occupancy as at June 30, 2016.
In a press release issued in conjunction with FCT’s financial statement announcement on Monday, the manager highlights FCT’s low gearing of 30% as at end-end, with a weighted average debt maturity which has improved to j2.6 years from 2.4 years in the previous quarter.
The manager says FCT’s portfolio has achieved a 4.3% positive rental reversion in the nine months YTD, while also highlighting that the trust has no refinancing needs for the remaining period in FY17.
“The suburban retail market remains resilient as this sector focuses more on necessity spending and increasingly on food and beverages. We see higher shopper traffic at Causeway Point, Changi City Point as well as YewTee Point, compared with the same period a year ago. We expect Northpoint shopper traffic to improve as we progress towards completion of the AEI this September,” says Chew Tuan Chiong, CEO of the manager.
“FCT has continued to deliver consistent performance for 3Q17 and its financial position remains solid. We will continue to maintain FCT’s performance and to deliver steady returns for our stakeholders.”
Units of FCT closed 1 cent higher at $2.14 on Monday.
