SINGAPORE (Oct 25): The manager of Frasers Centrepoint Trust has announced a distribution per unit (DPU) of 2.97 cents for 4Q17 ended Sept, an increase of 5.5% over the same period last year.
This brings total DPU for the FY17 ended Sept to 11.90 cents, 1.2% higher than a year ago.
Frasers Centrepoint Asset Management (FCAM) says this is the 11th straight year of DPU growth and the highest DPU achieved since FCT’s listing in 2006.
Gross revenue for 4Q17 was up 8.1% year-on-year to $48.2 million and net property income for the quarter was up 10.0% to $34.6 million.
The growth was driven mainly by higher rental income and improved occupancy at Northpoint City North Wing, formerly called Northpoint.
Causeway Point and Changi City Point which registered year-on-year revenue growth of 2.5% and 13.6%, respectively, also contributed to the strong 4Q17 results.
Net property income came in 10% higher at $34.6 million while distribution to unitholders was 6.1% higher at $27.5 million.
FCAM says FCT’s financial position remains strong with gearing level at 29.0% as at end Sept.
The weighted average debt maturity was 2.3 years and the all-in average cost of borrowings was 2.3%. FCT has approximately 55% of its borrowings on fixed or hedged-to-fixed interest rates.
Total appraised value of FCT’s portfolio of properties as at Sept 30 stood at nearly $2.7 billion, higher than the $2.5 billion recorded a year ago.
During 4Q17, 30 leases accounting for 4.8% of FCT’s total net lettable area (NLA) were renewed at an average rental reversion of +8.3%.
The portfolio occupancy as at Sept 30 was 92.0%, higher than the 87.1% registered in the prior quarter.
Although the general retail sector continues to face structural challenges, FCAM says FCT’s well-located suburban malls continue to remain resilient.
Dr Chew Tuan Chiong, Chief Executive Officer of FCAM, says, “We are delighted that FCT has delivered a healthy set of results in 4Q17 to end FY2017 on a high note with record DPU and NAV per unit. FY2017 was a challenging year, especially with the slower retail market environment and the AEI works at NPNW which required a lot of attention.”
Unitholders can expect to receive their DPU for 4Q17 on Nov 29.
Units in FCT closed 3 cents higher at $2.24 on Wednesday.
