FCT's fourth-quarter DPU falls 6.5%

Singapore

FRASERS Centrepoint Trust (FCT) posted a 17.5 per cent increase in income available for distribution for its fiscal fourth quarter as it reaped contributions from the newly acquired Changi City Point mall.

The retail real estate investment trust (Reit) said income available for distribution rose to S$25.5 million over the three months to Sept 30, in line with its own forecast. All of that will be paid out to unitholders. The per-unit distribution of 2.785 Singapore cents, of which 2.711 cents is taxable and 0.074 cent is exempt, represents a 6.5 per cent decrease from the year-ago payout of 2.98 cents.

Net property income rose 14.9 per cent in the quarter to S$31.3 million. For the full year, net property income was up 5.8 per cent to S$118.1 million.

Frasers Centrepoint Trust shares gained 1.6 per cent, or 3 cents, to close at S$1.94 on Thursday before the results were announced.

For the full fiscal year, income available for distribution rose 5.9 per cent to S$95.4 million. Full-year distribution per unit rose 2.4 per cent to 11.187 cents per share.

Gross revenue rose 16.1 per cent to S$46.7 million during the latest quarter as Changi City Point, which was acquired on June 16, began contributing. The S$305 million purchase was financed by bank borrowings and a private placement of 88 million new units at a price of S$1.835 per unit. Portfolio occupancy was 98.9 per cent as at end-September, up from 98.5 per cent three months earlier. Net property income gained 7.6 per cent to S$31.1 million during the quarter.

Frasers Centrepoint Trust expects "sustainable" performance barring unforeseen circumstances. "While concerns persist over manpower shortage and slowing retail sales growth, the rising average household income and low unemployment rate will continue to underpin non-discretionary expenditure, which will benefit Frasers Centrepoint Trust's well located suburban malls," the Reit said.