The manager of Frasers Centrepoint Trust (FCT) has reported distribution per unit (DPU) of 6.136 cents for the 1HFY2022 ended March, 2.3% higher than the DPU of 5.996 cents in the year before.
Gross revenue for the 1HFY2022 increased by 1.5% y-o-y to $176.19 million due to the full six-month contribution from the acquisition of the remaining 63.11% stake in AsiaRetail Fund Limited (ARF). The amount was partially offset by the loss of contribution from the properties divested in the FY2021, which were Bedok Point, Anchorpoint and YewTee Point.
Property expenses fell by 4.7% y-o-y to $45.7 million.
Accordingly, net property income (NPI) increased by 3.8% y-o-y to $130.5 million.
NPI margin for the period improved 1.7 percentage points y-o-y to 74.1%
Distributable income for the 1HFY2022 increased by 3.3% y-o-y to $104.4 million on the back of higher income.
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As at March 31, FCT’s retail portfolio had a committed occupancy of 97.8%, up 0.6 percentage points q-o-q. It also achieved positive rental reversion of 1.73% on an incoming versus outgoing basis for 14.4% of its total net lettable area (NLA) in the 1HFY2022.
According to the manager, its retail portfolio tenants’ sales from January to March have been maintained at above its pre-Covid-19 levels since October 2021. The easing of dining-in restrictions in November 2021 created higher shopper traffic and tenants’ sales, especially for food and beverage (F&B) vendors.
Shopper traffic under the retail portfolio improved to around 65% on average from January to March.
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As at March 31, FCT has a total leverage of 33.3% with an interest coverage ratio of 5.72 times.
Cash and cash equivalents for the period stood at $33.5 million.
In its statement, FCT says it has arranged for a network of 36 electric vehicle (EV) public charging points to be installed across 12 of its malls. The first phase of the installation of 27 charging points across eight malls will be completed by September.
In addition, the trust has signed an agreement with SP Group for Century Square and Tampines 1 to be injection nodes as part of Tampines Distributed District Cooling (the DDC) network. The network aims to provide cooling solutions while reducing energy consumption, lowering carbon emissions and saving costs.
Richard Ng, CEO of the manager says, “We are pleased that FCT has delivered a healthy set of results for 1HFY2022 that supports higher distribution for unitholders. We see improving market dynamics following the progressive easing of safe management measures and gradual normalisation of day-to-day activities.”
“Sentiment among retailers is also improving, and this supports leasing demand for retail space, particularly at our dominant malls. Riding on the tailwind of the easing Covid-19 restrictions and the re-opening of the economy, FCT is well-positioned to navigate ahead,” he adds.
In view of the higher energy prices, the REIT manager says it has fully hedged the energy rates for its portfolio of properties in various tranches to mitigate concentration risks. The hedges will progressively expire over the FY2022 and FY2023.
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The manager adds that it is also aware of the inflationary pressures, as well as higher financing costs from rising interest rates.
“Amidst the prevailing volatility, the manager will continue to leverage the advantages of an experienced management team, FCT’s healthy financial position and its large portfolio of demonstrably resilient suburban retail properties,” reads the statement.
Unitholders will receive their distributions on May 30.
Units in FCT closed at $2.44 on April 26.
