The manager of Frasers Centrepoint Trust (FCT) has reported distribution per unit (DPU) of 5.996 cents for the 1HFY2021, 28.4% higher than DPU of 4.670 cents in the 1HFY2020.
Distributable income for the 1HFY2021 increased 42.3% y-o-y to $101.1 million.
“This is the first set of financial results following the completion of the acquisition of the remaining 63.11% stake in AsiaRetail Fund Limited (ARF) in October last year,” explains Richard Ng, CEO of the manager.
“Overall performance was boosted by the enlarged retail portfolio and FCT’s financial position remains strong,” he adds.
1HFY2021 gross revenue surged 73.8% y-o-y to $173.6 million mainly due to gross revenue contribution from the newly acquired malls from ARF and offset by lower contribution from the divestment of Bedok Point in November 2020, as well as the ongoing Covid-19 restrictions on atrium space rental.
Property expenses increased 73.5% y-o-y to $48.0 million mainly due to the expenses by the newly acquired malls from ARF.
Accordingly, net property income (NPI) stood 73.8% y-o-y higher at $125.7 million.
FCT, during the half-year period, also saw unrealised gain of $1.1 million from fair valuation of interest rate swaps for the interest rate hedges in respect of $60 million of the loans.
The REIT posted a $2.1 million loss on its share of associates’ results, while posted a 5.4% y-o-y growth in share of joint ventures’ results at $7.9 million.
See also: Frasers Centrepoint Trust is divesting Anchorpoint Shopping Centre for $110 mil
FCT has reported a committed portfolio occupancy rate of 96.1% with a weighted average lease expiry (WALE) of 1.54 years by net lettable area (NLA) or 1.53 years by gross rental income (GRI).
A total of 182 leases were renewed during the 1HFY2021. The year-to-date (y-t-d) rental reversion stood at a negative 0.7%.
FCT’s total assets grew 57.7% to $6.12 billion from the $3.88 billion as at Sept 30, 2020. The increase was mainly due to the enlargement of its investment property portfolio.
“Our portfolio tenants’ sales registered y-o-y growth of 0.4% in January 2021 and 11.7% in February 2021, ahead of the y-o-y change in the Singapore retail sales value2 of -8.1% and 7.7%, respectively for the same months. The steady roll-out of Singapore’s Covid-19 vaccination programme and continued re-opening of the economy will further support the recovery of shopper traffic and tenants’ sales,” says Ng.
In its outlook statement, FCT says it will continue to invest in its omnichannel retailing initiatives and will leverage the location advantage of its physical malls.
It adds that it is also working towards the Frasers Property Group’s sustainable goal to achieve net carbon zero, health and safety ISO standards, among others, for its portfolio properties.
In addition, the REIT will continue to explore and take advantage of acquisition opportunities, as well as opportunities that may arise in the pipeline of its sponsor, Frasers Property Limited.
As at 9.18am, units in FCT are trading 3 cents higher or 1.2% up at $2.48.
