Frasers Centrepoint Trust fiscal 1Q net property income rose on improved mall revenue

Frasers Centrepoint Trust Changi City PointChangi City Point mall. Source: Frasers Centrepoint Trust

Frasers Centrepoint Trust reported on Monday its fiscal first quarter net property income rose 2.5 percent on-year to S$35.39 million on improved revenue from Changi City Point, Northpoint City North Wing and Causeway Point.

Gross revenue for the quarter ended 31 December rose 2.9 percent on-year to S$49.28 million, it said in a filing to SGX after the market close on Monday.

The distribution per unit (DPU) was 3.02 Singapore cents for the quarter, up 0.7 percent on-year from 3.00 Singapore cents in the year-ago quarter, the trust said.

Daiwa had forecast fiscal first quarter DPU at 2.91 Singapore cents, down 3.1 percent on-year, with revenue rising 2.5 percent on-year to S$49.1 million and net property income 0.3 percent higher at S$34.6 million.

Revenue growth was led by Changi City Point mall, which saw 12.7 percent revenue growth, and Northpoint City North Wing, which saw 4.5 percent revenue growth on improved gross rental income and higher turnover rent, Frasers Centrepoint Trust reported. Causeway Point mall posted revenue growth of 1.1 percent, it said.

“Overall growth was partially offset by the three smaller malls in the portfolio, which saw year-on-year declines in both revenue and net property income during the quarter, due mainly to lower average rental rates,” it said.

Portfolio occupancy at 31 December was at 96.4 percent, up from 92.6 percent in the year-ago period, it said. Occupancy a the Anchorpoint mall improved to 95.0 percent from 88.8 percent in the previous quarter after a new tenant began a lease for around 6 percent of the mall’s net lettable area, it said.

In its outlook, Frasers Centrepoint Trust said, “Despite the continuing challenges in the retail sector, suburban malls, which make up FCT’s portfolio, are expected to see relatively stable performance.”

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