Frasers Centrepoint Trust property, Causeway Point. (Photo: REITsWeek)Frasers Centrepoint Trust property, Causeway Point. (Photo: REITsWeek)

Singapore-listed retail REIT, Frasers Centrepoint Trust, announced on 15 July that it has recorded a distribution per unit (DPU) of 3.04 cents for its 3Q 2016, up 0.1% from the corresponding period of the previous financial year.

Gross revenue achieved for the period was SGD45.0 million, 4.4% lower compared to the SGD47.0 million in 3Q 2015. Similarly net property income (NPI) for the period declined by 5.1% to SGD31.2 million.

The REIT has attributed the falls in gross revenue and NPI mainly to lower contributions from its Northpoint property which is currently undergoing asset enhancement works.

Frasers Centrepoint Trust’s overall portfolio occupancy has also declined as at 30 June 2016 from 92.0% to 90.8% from the previous quarter due to the fitting-out of a new anchor tenant at Changi City Point.

Occupancy rate at other malls other than Northpoint and Changi City Point remained relatively stable but portfolio shopper traffic and tenant sales declined by 0.4% and 1.8% year-on-year, said the REIT.

“We continue to maintain tight watch over our financial position and borrowing costs amidst these volatile times”, said Chew Tuan Chiong, CEO of the REIT’s manager. He added that the REIT has fully refinanced the SGD264 million of borrowings which was due in July 2016.

The REIT’s gearing level is at 28.5% with an all-in average cost of debt at 2.259%.

Units of Frasers Centrepoint Trust finished the trading day flat from its previous close on the Singapore Exchange at SGD2.12.

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.