Frasers Centrepoint Trust's committed retail portfolio occupancy at 97.2% in Q1

THE manager of Frasers Centrepoint Trust J69U : J69U 0% (FCT) on Tuesday (Jan 25) reported that committed occupancy for the retail portfolio was stable at 97.2 per cent in Q1 FY2022 ended December, on the back of new retail concepts and brands introduced to refresh shopper experience and ensure sustainable trading.

In a business update after market close, FCT's manager said the trust showed a "resilient performance" despite the continuing impact from the Covid-19 pandemic. There was also still healthy demand for retail spaces within FCT's well-located and dominant suburban retail malls in Q1.

The manager attributed a 20.1 percentage point decline in occupancy in Central Plaza from end-September to end-December last year primarily to the exit of an anchor tenant. The trust is exploring opportunities for the reconfiguration of anchor space.

Meanwhile, proactive leasing management at Century Square, Changi City Point and White Sands is focused partly on tenant re-mixing and space re-sizing, said the manager.

The trust also reported strong leasing traction over the quarter under review, with only 22.8 per cent of leases by gross rental income set to be renewed over the remainder of FY2022. FCT noted that shopper traffic also recovered in December last year, following the easing of safe management measures and restrictions.

Portfolio tenants' sales tracked close to pre-Covid levels in October and November last year, and exceeded pre-Covid levels in December, noted the manager. This was due to the easing of dining-in restrictions and seasonality over the last quarter of 2021. FCT noted that the performance across trade sectors remains uneven, but the cessation of work from home as the default mode from January this year is expected to gradually increase shopper traffic.

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FCT's gearing level as at end-December stood at 34.5 per cent, up slightly from 33.3 per cent as at end-September last year. The trust said the current gearing level provides ample debt headroom to support growth.

Looking ahead, FCT's manager said the trust is well-positioned to ride the reopening of the economy, which augurs well for retail performance. However, the coronavirus pandemic continues to pose risks to FCT's business and financial performance.

Units of FCT finished Tuesday at S$2.28, down 0.4 per cent or S$0.01.