Frasers Centrepoint Trust reports fiscal 3Q net property income slipped

Waterway Point mall, by Frasers Property, at Punggol New Town in Singapore; taken August 2018.Frasers Property‘s Waterway Point mall at Punggol New Town in Singapore.

Frasers Centrepoint Trust Tuesday reported its fiscal third quarter net property income fell 1.1 percent on-year to S$34.60 million on higher property expenses amid a year-earlier property tax refund.

Gross revenue for the quarter ended 30 June rose 1.6 percent on-year to S$49.10 million, the trust said in a filing to SGX. The increase was due to portfolio occupancy improving to 96.8 percent by end-June, from 94.0 percent in the year-ago quarter.

The distribution per unit was 3.00 Singapore cents, down 1.7 percent from 3.053 Singapore cents in the year-ago quarter, the filing said. The trust attributed the decline in DPU to an enlarged number of units after a private placement in May and a preferential offering in June.

Daiwa had forecast net property income of S$35.1 million on revenue of S$49.4 million, with a DPU of 3.075 Singapore cents.

“We are excited to have executed two significant acquisitions during the quarter,” Richard Ng, CEO of Frasers Centrepoint Asset Management, the trust’s manager, said in the statement. “Both acquisitions reinforce FCT’s core strength as a leading suburban retail space provider in Singapore, further expand its market share in this sector and this will help to drive FCT’s long-term growth and returns to its unitholders.”

During the quarter, 49 leases accounting for 6.8 percent of the trust’s total net lettable area were renewed at an average positive rental reversion of 3.1 percent, the trust said.

For the quarter, shopper traffic in the portfolio was up 6.1 percent on-year, mainly on increases at Northpoint City North Wing and YewTee Point, the trust said. Tenant sales for the March-to-May period rose 2.9 percent on-year, the filing said.

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