FRASERS Centrepoint Trust (FCT) : J69U 0% reported a committed occupancy for its retail portfolio of 99.9 per cent for the first quarter ended Dec 31, 2023, on the back of stronger shopper traffic and improved tenant sales.

In a business update on Monday (Jan 22), FCT’s manager said its retail occupancy has improved 1.5 per cent year on year (yoy) and up 0.2 per cent when compared to the previous quarter. Each of the retail malls under the trust has a committed occupancy of at least 99 per cent, it said.

Tenants’ sales were 0.7 per cent lower yoy for the period October to December 2023 due to renovation works carried out at several key anchor tenants’ units ahead of the festive season, said FCT’s manager, otherwise sales would be higher yoy at 1.1 per cent. Post-renovation, tenants saw better sales performance, it added.

Meanwhile, shopper traffic for its malls was also 3.1 per cent higher yoy for the period ended December 2023.

The manager updated that asset enhancement initiative (AEI) works are progressing well for its Tampines 1 property, with the first batch of the completed units on Levels 4 and 5 handed over last month.

It said that more than 97 per cent of the AEI spaces have been pre-committed and works are expected to finish by September this year.

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In the Q1 update, the manager also said its portfolio’s weighted average lease expiry for the period stood at 2.03 years by net lettable area and 1.89 years by gross rental income.

FCT’s gearing level as at end-December stood at 37.2 per cent, down from the 39.3 per cent as at end-September last year. The manager said it adopts prudent capital management via proactive hedging amid declining interest rates.      

Looking ahead, it said the trust is positive on the outlook for Singapore’s suburban retail sector. The trust’s full-year financial performance will be enhanced as a result of the acquisition of the 25.5 per cent stake in NEX mall and the additional 10 per cent stake in Waterway Point, it noted. 

Units of FCT ended Monday at S$2.24, up 1.8 per cent or S$0.04.