With the implementation of Phase 2 (Heightened Alert) measures in May and June, Frasers Centrepoint Trust (FCT) shopper traffic fell to around 60% of pre-Covid-19 levels.
That said, FCT’s retail portfolio occupancy is stable at 96.4%,says Frasers Centrepoint Asset Management, the manager of FCT, in its business updates for 3QFY2021 ended June.
FCT’s portfolio comprises Causeway Point, Northpoint City North Wing (incl. Yishun 10), Waterway Point, Changi City Point, Tampines 1, Tiong Bahru Plaza, Century Square, Hougang Mall, Whitesands and Central Plaza, an office space.
FCT completed the divestment of Yew Tee Point on May 28, 2021.
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Portfolio tenants’ sales nudged back to around pre-Covid-19 levels despite tightened measures during Phase 2 (HA), and performance was underpinned by the resilience of FCT’s portfolio of suburban malls, says FCT. Tenants sales grew 115.2% y-o-y, though this was from a low base during the circuit breaker last year.
FCT’s gearing level at 33.9%, compared to 35.0% as at June 30, 2020; and the REIT is in “strong financial position with ample debt headroom to support future growth”, it says.
FCT reported an average debt maturity of 2.8 years as at June 30, 2021, up from 2.3 years this time last year.
FCT reported total borrowings of $1,865.5 million, of which 55.3% were in secured debt, 28.6% in unsecured debt and 16.1% in FCT’s two medium-term notes.
In addition, FCT renewed substantial expiring leases due in FY2021, and only 8% of its leases remain for renewal in 4QFY2021.
Weighted Average Lease Expiry (WALE) as at June 30, 2021 stands at 1.62 years by net lettable area (NLA), compared to 2QFY2021 WALE of 1.54 years.
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Units in Frasers Centrepoint Trust closed 1 cent higher, or 0.42% up, at $2.41 on July 22
