Frasers Centrepoint Trust reported Thursday that its portfolio tenants’ sales edged back up to around pre-Covid levels in the fiscal third quarter despite tightened restrictions during Singapore’s phase two heightened alert (HA) during the period.
“Performance was underpinned by the resilience of FCT’s portfolio of suburban malls,” the trust said in its business update filed to SGX. “Suburban malls were among the first to benefit from recovery as Singapore exited the Circuit Breaker in early June 2020 – FCT saw its tenants’ sales recovering to pre-COVID levels soon after Phase 1 and Phase 2 reopening.”
Shopper traffic in the April-to-June period fell to around 60 percent of pre-Covid levels, however, due to the HA measures to combat the pandemic, the trust said.
Frasers Centrepoint Trust added that it had renewed substantial expiring leases due this fiscal year, with only 8 percent remining to renew in the current quarter. Committed portfolio occupancy was stable at 96.4 percent, it said.
“Quality suburban retail spaces remain in demand by retailers,” the trust said.
In general, suburban retail rents rose around 1 percent on-quarter in Singapore during the quarter, the trust noted, citing data from CBRE Singapore Real Estate Market Update, with upcoming new retail supply over the 2022-2024 period to remain low.
The trust has a portfolio of nine retail malls, which focus on providing essential services to a mainly domestic catchment: Causeway Point, Northpoint City NW, Waterway Point, Tampines 1, Century Square, Changi City Point, Tiong Bahru Plaza, White Sands and Hougang Mall.