SINGAPORE (April 25): The manager of Frasers Centrepoint Trust (FCT) has declared a 2Q17 distribution per unit (DPU) of 3.04 cents, unchanged from a year ago.
Gross revenue for the quarter declined 2.9% on-year to $45.7 million $47.1 million in the previous year due to lower contributions from Northpoint mall, which is presently undergoing asset enhancement initiative (AEI) works.
The absence of contributions from Northpoint was mitigated in part by higher contributions from other properties in the portfolio, namely Causeway Point and Changi City Point.
Property expenses for the quarter totalled $13.2 million, representing a decrease of 1.9% compared to the corresponding period last year, mainly attributable to lower utilities tariff rates and other property expenses which were offset in part by higher property tax.
As such, net property income (NPI) for 2Q17 declined 3.3% y-o-y to $32.6 million.
As at end March, FCT’s gearing stood at 29.4% with a weighted average debt maturity of 2.4 years, while approximately 57% of its borrowings on fixed or hedged-to-fixed interest rates.
Net asset value (NAV) was $1.93 per unit.
Overall portfolio occupancy as of March 31 declined to 87.2% from 91.3% in the prior quarter, owing mainly to the planned vacancy at Northpoint in conjunction with the ongoing AEI. Portfolio shopper traffic during the quarter also declined 3.5% on-year.
The manager of FCT says that AEI works at Northpoint are proceeding on schedule with completion to be expected by Sept this year, while leasing interest for the reconfigured areas remains strong.
Despite noting challenges from labour constraints, e-commerce and tepid sales growth which remain in the retail sector, it expects FCT’s “well-located suburban malls” to remain resilient.
Highlighting FCT’s consistent performance and solid financial position, Chew Tuan Chiong, CEO of the manager, adds: “We will continue to focus on improving our mall performance and to deliver steady performance for our stakeholders.”
Units of FCT closed 4 cents higher at $2.12 on Monday.
