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Frasers Centrepoint Trust's Q2 DPU rises 2.6%

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The interior of Causeway Point. Frasers Centrepoint Trust (FCT) on Friday posted a 2.6 per cent increase in distribution per unit (DPU) to 3.039 Singapore cents for the second quarter ended March 31, 2016.

FRASERS Centrepoint Trust (FCT) on Friday posted a 2.6 per cent increase in distribution per unit (DPU) to 3.039 Singapore cents for the second quarter ended March 31, 2016.

Net property income (NPI) rose by a marginal 0.4 per cent to S$33.68 million despite a 0.8 per cent dip in gross revenue to S$47.1 million, thanks to lower utility tariff rates and write-back of provisions for property tax as a result of resolved property tax appeals and objections.

The bigger malls - Causeway Point, Northpoint and Changi City Point - accounted for about 86 per cent of portfolio NPI.

"The Singapore retail environment continues to be challenging," said Chew Tuan Chiong, CEO of FCT manager Frasers Centrepoint Asset Management. "Going forward, we will remain focused on growing the Trust on solid footing through organic growth, AEI (asset enhancement initiative) and exploration of acquisition opportunities."

The portfolio occupancy as at March 31, 2016, declined to 92 per cent from 94.5 per cent in the prior quarter, due mainly to the AEI works at Northpoint started in March. The occupancy rate of the other malls remained relatively stable.

Overall shopper traffic and tenant sales in the second quarter rose 11.4 per cent and 2.1 per cent from a year ago respectively.

During the quarter, 27 leases accounting for 2.3 per cent of FCT's total net lettable area (NLA) were renewed at an average rental improvement of 5.6 per cent. FCT has renewed close to half of the total NLA of leases expiring in FY2016 in the first two quarters, with an average positive rental reversion of 12 per cent.