Frasers Centrepoint Trust (FCT) has reported a distribution per unit (DPU) of 6.02 cents for the 2HFY2024 ended Sept 30, unchanged y-o-y. This brings the REIT’s FY2024 DPU to 12.042 cents, 0.9% lower y-o-y.
While 2HFY2024 distributions to unitholders rose by 6.2% y-o-y to $109.4 million, this was spread across a higher unit base of 1.81 billion as at Sept 30 compared to 1.71 billion units as at Sept 30, 2023.
Gross revenue for the 2HFY2024 fell by 2.5% y-o-y to $179.5 million while net property income (NPI) fell by 0.6% y-o-y to $128.8 million. FY2024 gross revenue and NPI also fell by 4.9% y-o-y and 4.6% y-o-y to $351.7 million and $253.4 million. The declines for the six- and 12-month periods were due to the absence of contributions from Changi City Point and lower contributions from Tampines 1. Changi City Point was divested in October 2023 while Tampines 1 underwent asset enhancement initiative (AEI) works.
As at Sept 30, FCT’s portfolio occupancy stood at 99.7% unchanged q-o-q. Its weighted average lease expiry (WALE) as at Sept 30 stood at 2.11 years by net lettable area (NLA) and 1.97 years by gross rental income (GRI).
FCT’s aggregate leverage as at the same period fell by 0.6 percentage points q-o-q to 38.5% while its adjusted interest coverage ratio (ICR) stood at 3.41 times, up from 3.26 times a quarter ago.
“We are pleased that FCT has delivered a healthy set of results for FY2024, backed by stable financial position and robust operating performance. FY2024 was an eventful year marked by several key achievements which strengthened FCT’s portfolio and future performance,” says Richard Ng, CEO of the manager.
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This year, FCT increased its stake in Nex to 50% after completing the acquisition of an additional 24.5% stake in March. The REIT also completed its AEI in Tampines 1 in August with a higher-than-expected return on investment of 8%.
“The inclusion of FCT as a constituent of the Straits Times Index in March 2024 marked a significant milestone and stood as a testament to FCT’s progressive growth journey over the years,” Ng adds.
“Looking ahead, we anticipate another exciting year in FY25, as we embark on the AEI at Hougang Mall and maintain our focus on the asset and property management of FCT’s portfolio. We remain optimistic about the outlook of the suburban retail sector in Singapore and believe that FCT is well-positioned to deliver stable growth and healthy performance in the future,” he continues.
As at 12.05pm, units in FCT are trading 3 cents lower or 1.32% down at $2.24.
