Frasers Centrepoint Trust posts fiscal 2H net property income more than tripled

Frasers Centrepoint Trust Causeway PointSource: Frasers Centrepoint Trust

Frasers Centrepoint Trust reported Wednesday its fiscal second half net property income surged 213 percent on-year to S$120.91 million, boosted by the acquisition of the 63.11 percent of AsiaRetail Fund it didn’t already own and on lower rental rebates to tenants.

Gross revenue for the April-to-September period increased 160 percent on-year to S$167.53 million, the trust said in a filing to SGX.

The distribution per unit (DPU) for the fiscal second half came in at 6.089 Singapore cents, up 39.3 percent from 4.372 Singapore cents in the year-ago period, Frasers Centrepoint Trust said.

Portfolio occupancy was at 97.3 percent, up by 0.9 percentage point, the trust said. During the full year, 459 leases were renewed, with the retail portfolio’s rental reversion, on an incoming vs outgoing basis, was at minus 0.6 percent, the trust said.

Tenant sales over the July-to-September period came in at around 93 percent to 98 percent of pre-Covid levels, the trust said.

For the fiscal year ended 30 September, Frasers Centrepoint Trust reported net property income rose 122 percent on-year to S$246.57 million on gross revenue of S$341.15 million, up 108 percent on-year. The full-year DPU came in at 12.085 Singapore cents, up from 9.042 Singapore cents the previous year, the filing said.

Outlook

Richard Ng, CEO of Frasers Centrepoint Asset Management, the trust’s manager, said the results were “good.”

“It has been another challenging year due to the Covid-19 situation, which has weighed on some tenants’ businesses and shopper traffic to our malls. In this challenging time, we see omnichannel retailing as a viable way to help cushion the impact on our tenants and to generate additional sales,” Ng said in the statement. “Since its launch in January this year, the sales from Frasers eStore have tripled; and the sales from the F&B concierge Makan Master grew seven times since its launch in April 2020.”

Ng added, “Going forward, we believe there is resilient demand for retail spaces within well-located and dominant suburban retail malls as the economy re-opens.”

Frasers Centrepoint Trust said Covid-19 still poses risks.

“The easing of the safe management measures by the authorities will help to support the recovery of our tenants’ sales and shopper traffic at FCT’s malls. In the near-term, the manager will continue to focus on managing the operating and financial performance of FCT’s portfolio,
taking into consideration the evolving Covid-19 situation,” the trust said.