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Frasers Centrepoint Trust posts 1.8% rise in Q4 DPU to 2.913 S cents

FRASERS Centrepoint Trust’s (FCT) distribution per unit (DPU) rose 1.8 per cent to 2.913 Singapore cents from 2.862 cents a year ago for the fourth quarter ended Sept 30, 2019, boosted by higher portfolio occupancy and contributions.

Gross revenue was down 0.5 per cent to S$48.3 million for the quarter, from S$48.5 million a year ago.

Net property income (NPI) edged down 0.1 per cent on the year to S$32.85 million for the quarter, from S$32.88 million a year ago.

Excluding non-cash account adjustments, NPI would have been 4.8 per cent higher year on year, due to higher average portfolio occupancy and higher contributions from Northpoint City North Wing, Changi City Point and YewTee Point.

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Net non-property expenses stood at S$11.1 million, S$1.6 million higher than a year ago due to higher borrowing costs from additional borrowings, and the manager’s management fees arising from the increase in total assets.

Income available for distribution rose 17.9 per cent year on year to S$30.4 million, from S$25.8 million.

The distribution will be paid out on Nov 29, after books closure on Nov 1.

Meanwhile, for the full year ended Sept 30, DPU was higher at 12.07 Singapore cents, versus 12.015 cents a year ago, and income available for distribution grew 6.6 per cent to S$118.7 million from S$111.3 million a year ago.

Gross revenue was 1.6 per cent higher at S$196.4 million, while NPI rose 1.5 per cent to S$139.3 million for the full year, from S$137.2 million a year ago.

FCT’s assets consist of retail properties Causeway Point, Northpoint City North Wing and Yishun 10 Retail Podium, Anchorpoint, YewTee Point, Bedok Point, Changi City Point and Waterway Point – which it has a 40 per cent interest in.

It raised its stake in Waterway Point on Sept 18 to 40 per cent after acquiring an additional 6.3 per cent. It also increased its stake in PGIM Real Estate Asia Retail Fund to about 24.82 per cent from 21.13 per cent in the same month.

"These investments are expected to further increase income diversification for FCT’s portfolio," it added.

FCT’s portfolio occupancy as at Sept 30 stood at 96.5 per cent, up from 94.7 per cent the year before.

The quarter’s portfolio shopper traffic was 8.9 per cent higher year on year, due to an increase in shopper traffic at Northpoint City North Wing after the opening of the new Yishun bus interchange.

Portfolio tenant sales for the three months from June to August 2019 were flat compared with a year ago. Year-on-year growth for higher tenant sales registered at Northpoint City North Wing, Changi City Point, YewTee Point and Waterway Point was also offset by the decline recorded at Causeway Point.

This was due to the mall’s basement level underground pedestrian link construction, which is expected to finish in December 2019; and the lease termination of certain tenants in the computer trade earlier in the year. Tenants’ sales performance in other sectors in the mall remained stable, the announcement said.

Richard Ng, chief executive of FCT’s manager, said that for the next few years, the retail Reit will be focusing on improving the performance of the properties in its portfolio and those in its joint ventures and associates.

"Our focus will continue to be in Singapore and in the suburban retail sector," Mr Ng added.

FCT units were trading at S$2.74 as at 12.02pm, up one Singapore cent or 0.4 per cent.