Frasers Centrepoint reports fiscal 2Q net property income rose on Changi City Point improvement

Frasers Centrepoint Trust Causeway PointSource: Frasers Centrepoint Trust

Frasers Centrepoint Trust reported Wednesday its fiscal second quarter net property income rose 4.8 percent on-year to S$36.44 million, beating a Daiwa forecast, as Changi City Point’s performance improved.

Gross revenue for the quarter ended 31 March increased 2.3 percent on-year to S$49.73 million, Frasers Centrepoint Trust said in a filing to SGX.

The distribution per unit (DPU) was 3.137 Singapore cents for the quarter, up 1.2 percent from 3.10 Singapore cents in the year-ago quarter, the filing said.

Daiwa had forecast net property income of S$35.5 million on revenue of S$49.9 million, with a DPU of 3.03 Singapore cents.

The portfolio’s rental reversions were a positive 2 percent, bringing the fiscal year-to-date level to 5.4 percent, the filing said.

At Changi City Point, net property income increased 24.6 percent on-year in the quarter, while other malls saw increases of as much as 8.9 percent, the trust said. Changi City Point’s occupancy improved to 96.7 percent at end-March from 94.8 percent at the end of the fiscal first quarter and 90.6 percent at the end of the year-ago quarter, it said.

Chew Tuan Chiong, CEO of Frasers Centrepoint Asset Management, the REIT’s manager, said the DPU was a record high.

“We expect our portfolio of suburban malls to maintain steady performance. Going forward, we will continue to focus on improving the financial performance of FCT as well as on acquisition strategies to drive further growth,” Chew said in the statement.

In its outlook, the trust noted its portfolio has six suburban malls located in populous residential areas with public-transportation connections.

“The focus on necessity shopping, healthy mall occupancy and steady shopper traffic helps to underpin the stable performance and resilience of the portfolio,” Frasers Centrepoint Trust said.

 

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