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

Frasers Centrepoint Trust has reported a DPU of 2.89 Singapore cents for its 1Q 2017, a marginal year-on-year increase of 0.7% from the 2.87 cents achieved in the corresponding period of 2016.

However gross revenue and net property income (NPI) for the period came in 6.4% and 5.7% lower than what was recorded in 1Q 2016, at SGD44 million (USD30.7 million) and SGD31.6 million respectively.

However distributable income for the period increased by 1.1% to SGD26.6 million.

Frasers Centrepoint Trust has attributed this set of results to lower contribution from Northpoint, which is currently undergoing asset enhancement initiative (AEI) works.

“Higher net property income contributions from Causeway Point, Bedok Point, and YewTee Point helped to offset the lower contributions from rest of the malls”, said the REIT in a statement on the results.

Frasers Centrepoint Trust’s aggregate portfolio occupancy improved to 91.3% from 89.4% in the previous quarter, while portfolio shopper traffic in the three-month period between October and December 2016 improved 2.7% year-on-year, and 7.5% quarter-on-quarter.

However portfolio tenant sales for the three-month period from September to November 2016 was 10.1% lower year-on-year.

Gearing for the period was at 29.7%, with an average all-in cost of debt of 2.1%.

For the quarter ahead, the retail REIT anticipates its malls to remain resilient despite the uncertain economy, largely due to their locations in Singapore’s suburban areas.

Units of Frasers Centrepoint Trust finished the trading day about 0.25% lower from its previous close on the Singapore Exchange to end at SGD1.965.

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.