Singapore-focused mainboard-listed retail REIT Frasers Centrepoint Trust (FCT) (SGX:J69U) has reported a distribution per unit (DPU) of 2.785 Singapore cents for its 4Q 2014, a 6.5% year-on-year contraction as compared to the 2.98 Singapore cents paid out for 4Q 2013.
This is despite seeing a 16.1% year-on-year growth in revenue which was recorded at SGD46.6 million for the quarter. Net property income (NPI) for 4Q 2014 also increased year-on-year by 14.9% to SGD31.3 million.
Revenue and NPI figures for the quarter are bolstered by contribution from Changi City Point which the REIT acquired in June 2014, the rental step-up of current leases and better rental rates achieved for new and renewed leases during the quarter.
However when the results are reviewed on the basis of FY2014, total DPU for the financial year ended 30 September 2014 stands at a new high of 11.187 Singapore cents, the eighth consecutive year of DPU growth since the REIT’s listing.
FCT’s overall portfolio occupancy stood at 98.9% as of 30 September 2014. Causeway Point and Northpoint registered occupancy of 99.8% and 99.4%, respectively, the highest among the six malls in FCT’s portfolio.
The REIT’s gearing ratio is at 29.3% while its weighted average lease to expiry (WALE) by net lettable area (NLA) dipped slightly to 1.43 years from 1.52 years from the previous quarter.
Chew Tuan Chiong, CEO for the REIT’s manager remains optimistic that FCT will continue to deliver steady performance in the quarters ahead.
“While concerns persist over manpower shortage and slowing retail sales growth, the rising average household income and low unemployment rate will continue to underpin non-discretionary expenditure, which will benefit FCT’s well-located suburban malls”, said Chew adding that he expects FCT’s performance to remain sustainable.
Units if FCT ended about 2% higher from the previous trading day to end at SGD1.94 in line with gains made by REITs on the Singapore Exchange.