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

Singapore-listed retail REIT Frasers Centrepoint Trust has recorded a DPU of 2.815 Singapore cents for its 4Q 2016, a 1.5% decline from the 2.859 cents achieved in the corresponding period of 2015.

DPU for financial year ended 30 September 2016 was 11.764 cents, which is 1.3% higher than the previous financial year year.

This is the REIT’s tenth consecutive year of annual DPU growth, and the highest since it was listed in 2006.

Gross revenue for 4Q 2016 was SGD44.6 million (USD32 million), which is 6.0% lower compared with the same period in 2015, while net property income for the period declined by 0.9% to SGD31.4 million.

The REIT has attributed the fall in numbers partly to asset enhancement works at Northpoint, and vacancy due to changeover in an anchor tenant at Changi City Point.

37 leases accounting for 2.6% of the REIT’s total net lettable area were renewed at an average rental reversion of 4.6% for 4Q 2016, while average rental rates achieved during the financial year improved by 9.9%.

However the REIT’s portfolio occupancy as at 30 September 2016 declined to 89.4%, from 90.8% in the previous quarter.

“Going forward, we will continue to focus on optimising the performance and returns of Frasers Centrepoint Trust’s malls, ensuring that they remain relevant to our shoppers and tenants”, said Dr Chew Tuan Chiong, CEO of the REIT’s manager in a statement on 21 October.

“AEI and acquisition strategies will remain the key growth drivers for [the REIT], while active lease management and maintaining healthy occupancy and rental reversion are crucial in maintaining our organic growth momentum”, he added.

Units of Frasers Centrepoint Trust were last done on the Singapore Exchange at SGD2.16.

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.