Frasers Centrepoint Trust’s committed retail portfolio occupancy at 98.7% in Q3 

FRASERS Centrepoint Trust’s committed occupancy for its retail portfolio rose 1.6 percentage point to 98.7 per cent year on year in the third quarter ended Jun 30, on the back of firm leasing demand. 

Shopper traffic and tenants’ sales both increased within the same period, with tenants’ sales averaging 16 per cent above pre-Covid-19 levels, the trust’s manager said on Tuesday (Jul 25). 

The trust is poised to benefit from the positive market environment, as prime retail rents rose islandwide in the April-to-June quarter, supported by the continued recovery of Orchard Road malls and the resilience of the suburban market. 

CBRE Research noted that suburban prime rents rose 3.1 per cent, and that Orchard Road prime rents were up 2.9 per cent year on year. 

While occupancy remains above 99 per cent for malls such as Causeway Point, Waterway Point, Tiong Bahru Plaza and Hougang Mall, Changi City Point registered a 6.4 percentage point decline in occupancy, pending documentation of negotiated leases.

The trust manager said it will continue curating and refreshing retail offerings by bringing in popular brands and new-to-Singapore concepts. For instance, it brought in China’s largest coffee chain, Luckin Coffee, as a tenant in Tampines 1. 

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Frasers Centrepoint Trust’s weighted average lease expiry as at Jun 30 was 1.95 years by net leasable area, and 1.86 years by gross rental income. 

Giving an update on asset enhancement works at Tampines 1, the trust manager said works are progressing on schedule, and will be completed in Q3 2024. The mall continues to operate in the meantime.

As at end-June, Frasers Centrepoint Trust’s gearing levels stood at 40.2 per cent, up from 39.6 per cent as at end-March. Average debt maturity has been extended to 2.53 years from 1.91 years. 

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It said that all remaining significant lease expiries are in advanced negotiations for renewal or new leasing.

The trust’s manager said it will continue to drive tenants’ sales and improve tenant mix and focus on asset-enhancement initiatives to improve yield and create value. 

Units of Frasers Centrepoint Trust ended Tuesday down 0.5 per cent or S$0.01 at S$2.19.