FCT reports Q3 DPU of 3.04 cents

FRASERS Centrepoint Trust (FCT) marked a 0.1 per cent rise in distribution per unit (DPU) for the third quarter ended June 30 from a year ago to 3.04 Singapore cents.

Its gross revenue fell 4.4 per cent to S$45 million during the quarter. Property expenses for the quarter was 2.6 per cent lower at S$13.9 million. Net property income (NPI) slipped 5.1 per cent to S$31.2 million.

The year-on-year decline in gross revenue and NPI was due mainly to lower contributions from Northpoint, which is currently undergoing asset enhancement works.

"The asset enhancement works at Northpoint are progressing on schedule. While the works have been phased to minimise income disruption, there will be impact to rental revenue for the mall," Chew Tuan Chiong, CEO of the Reit manager, explained.

"We continue to maintain a tight watch over our financial position and borrowing costs amid these volatile times," he added. "We have fully refinanced the S$264 million borrowing which was due in July, through new bank borrowings and a bond issue, and we have no refinancing remaining in FY2016."

FCT kept its gearing level at 28.5 per cent. It issued S$50 million of medium-term notes with 2.76 per cent interest on June 21 to partially refinance the S$264 million secured borrowing and for working capital purposes.

The all-in average cost of borrowings dropped slightly to 2.259 per cent from 2.286 per cent in the prior quarter. As of June 30, FCT has about 78 per cent of its borrowings on fixed or hedged-to-fixed interest rates.