Singapore-listed retail REIT, Frasers Centrepoint Trust (SGX:J69U), announced on 21 January that it has achieved a distribution per unit (DPU) of 2.87 Singapore cents for its 1Q16, a 4.4% increase from the same period a year ago.
Gross revenue for the period was SGD47.1 million, marginally higher than the SGD47.2 million achieved in the same period from the previous financial year while net property income (NPI) increased 2.0% to SGD33.5 million on lower property expenses.
Weighted average lease expiry (WALE) by net lettable area was at 1.61 years as at 31 December 2015, up from the 1.5 years in 4Q 2015 but portfolio occupancy was 94.5%, down slightly from the 96.0% as at 30 September 2015.
“The decline in portfolio occupancy was mainly attributed to Bedok Point and Changi City Point, which saw softer demand for new and renewal of leases amidst during 1Q16”, said the REIT.
During the quarter, 62 leases accounting for 10.3 % of the REIT’s total net lettable area were renewed at an average rental reversion of 13.7% with Northpoint achieving a stronger-than-average rental reversion of 26.3%, due mainly to a single lease signed during the quarter at a significantly higher rental rate compared to the preceding lease, said the REIT.
Asset enhancement at Northpoint is scheduled to commence in March 2016
The REIT’s gearing is at 28.3% with an average weighted debt maturity stood of 1.45 years as at 31 December 2015. The all-in average cost of borrowings in 1Q16 is 2.361% and approximately 74% of the REIT’s borrowings are on fixed interest rates or have been hedged via interest rate swaps. Net asset value per unit as at 31 December 2015 remained steady at SGD1.91.
“In spite of the current headwinds in the retail industry, Frasers Centrepoint Trust’s well-located suburban malls are expected to continue to attract steady shopper traffic, thus contributing to the sustainability of the portfolio’s rental income and occupancy rates”, said the REIT.
Units of Frasers Centrepoint Trust finished the trading day at SGD1.84, 1.34% lower from its previous close on the Singapore Exchange in line with a securities rout across the region.