Frasers Centrepoint Trust posts 39.3% rise in H2 DPU at S$0.06089

FRASERS Centrepoint Trust's (FCT) J69U distribution per unit (DPU) rose by 39.3 per cent to 6.089 Singapore cents for the second half of the year ended September, from 4.372 cents for the same period a year ago.

Gross revenue was up 159.9 per cent to S$167.5 million for the half-year period, from S$64.5 million in the previous year.

The improved full-year financial performance is attributed to the acquisition of its remaining 63.1 per cent stake in AsiaRetail Fund and lower rental rebates granted to tenants this year, FCT's manager said in a bourse filing on Wednesday (Oct 27).

Net property income (NPI) grew 213.2 per cent on year to S$120.9 million for the half year, from S$38.6 million.

Distributable income rose 243.9 per cent on year to S$103.6 million, from S$30.1 million.

The distribution will be paid out on Nov 29, 2021, after books closure on Nov 5, 2021 at 5 pm.

Meanwhile, for the full year ended September, DPU was higher at 12.085 cents, versus 9.042 cents a year ago, and distributable income grew 102.4 per cent to S$204.7 million.

Gross revenue was 107.5 per cent higher at S$341.2 million, while NPI rose 122.4 per cent to S$246.6 million for FY2021.

Richard Ng, chief executive officer of FCT's manager, noted that it "had been another challenging year" due to the pandemic, which has weighed on some tenant's businesses and shopper traffic.

He said: "In this challenging time, we see omnichannel retailing as a viable way to help cushion the impact on our tenants and to generate additional sales."

"Going forward, we believe there is resilient demand for retail spaces within well-located and dominant suburban retail malls as the economy reopens," he added.

FCT's gearing level as at Sep 30 was at 33.3 per cent, and its year-to-date interest coverage ratio was 5.11 times.

Total assets as at Sep 30 stood at S$5.9 billion, an increase of around S$2 billion, due to the AsiaRetail Fund acquisition, but partially offset by the divestment of Bedok Point, Anchorpoint and YewTee Point in FY2021.

FCT's retail portfolio occupancy improved to 97.3 per cent, from 96.4 per cent in the third quarter of 2021. It saw a total of 459 leases renewed in FY2021, which put its rental reversion of the retail portfolio, on an incoming versus outgoing basis, at -0.6 per cent.

Portfolio tenants' sales between July and September was approximately 93 per cent to 98 per cent of pre-pandemic levels, although performance of the various trade sectors and among tenants remain uneven.

Meanwhile, shopper traffic for the period was 50 per cent to 60 per cent of pre-Covid-19 levels, which the manager said was due in part to Phase 2 (Heightened Alert) measures that reduced the permitted mall capacity and restricted social gatherings.

FCT units, at market close, were S$2.36, up by S$0.03 on Oct 27.