Singapore-listed Retail REIT Frasers Centrepoint Trust (FCT) (SGX:J69U) has posted a 5 per cent drop in its net property income (NPI) for its 4Q 2013. NPI came in at S$27.27 million as compared to S$28.71 million from 4Q 2012. This despite seeing a rise in gross revenue which rose 3 per cent to come in at 40.2 million for the quarter.

Net Property Income for Frasers Centrepoint Trust slid 5% despite a 3% rise in gross revenue.

However unit holders of the REIT will be delighted to know that FCT has scored a seventh consecutive year of DPU growth since it listed. The REIT has announced a DPU of 2.98 cents for the period from 1 July to 30 September 2013, an increase of 10 per cent compared to the same period a year ago. This brings the total DPU for the financial year ended 30 September 2013 to a new-high of 10.93 cents.

FY2013 gross revenue grew 7.3 per cent to $158.0 million on higher contributions from Causeway Point and Northpoint from better rental rates achieved for new and renewed leases during the year. Similarly, FY2013 net property income grew 6.9 per cent to $111.6 million. The total distribution to unit holders for FY2013 was $90.1 million, an increase of 9.5 per cent compared to FY2012.

Dr Chew Tuan Chiong, Chief Executive Officer of FCAM, said, “FCT has continued to deliver steady performance and consistent growth, achieving new-highs for its income, NAV and DPU for seven consecutive years. We are optimistic that FCT can continue to benefit from positive macro-economic trends in Singapore such as growth in retail sales, growing household income, sustained low unemployment rate and growing population in suburban estates especially in Woodlands and Yishun where we have strong presence.

REITSWEEK will be analyzing the REIT's results further in our next issue. Units of Frasers Centrepoint Trust closed the day at S$1.85 on the Singapore Exchange.

By Ridzwan Rahmat

Ridzwan has been analysing REITs and business trusts since 2008, and personally manages a portfolio comprising mainly of SGX-listed REITs. He founded REITsWeek in 2013.