Frasers Centrepoint Trust, one of the larger retail REITs, has reported that tenants’ sales for its 3QFY2022 ended June has increased by 23% over the same quarter last year. On average, the sales have even reached a level 10% higher than pre-pandemic levels on average.
Shopper traffic, meanwhile, was up 32% y-o-y for the same quarter, and was around 79% pre-pandemic levels, says FCT in its 3Q quarterly business update.
FCT owns a $6.1 billion portfolio of nine malls with a total net lettable area of 2.3 million square feet, such as Causeway Point and Waterway Point.
Overall, the REIT’s retail portfolio was 97.1% occupied for 3QFY2022, slightly lower from the last quarter.
FCT has what it calls “prudent” hedging moves in place: 69% of its borrowings are on fixed rates, for one.
Concerns over rising energy prices, similar to higher interest rates, have weighed down sentiment towards some REITs.
See also: Changes in ICR, leverage to come into effect immediately, with additional disclosures in March
FCT notes that while there’s an increase in the power costs incurred by its portfolio, there’s hedging which only progressively expire over the coming three quarters.
FCT closed July 26 at $2.31, up 0.87% for the day, but down 0.86% year to date.
