Frasers Centrepoint Trust posts fiscal 1H net property income rose 4 percent

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. The property is 40 percent owned by Frasers Centrepoint Trust.

Frasers Centrepoint Trust reported Wednesday its fiscal first half net property income rose 3.8 percent on-year to S$130.48 million on lower property expenses as allowances for doubtful debts declined.

The results beat a forecast from Daiwa.

Gross revenue for the October-to-March period edged up 1.5 percent on-year to S$176.19 million, the REIT said in a filing to SGX. Revenue was boosted by the full contribution from the acquisition of the remaining 63.11 percent stake in AsiaRetail Fund in October 2020, partly offset by the divestment of three retail properties — Bedok Point, Anchorpoint and YewTee Point in 2021, the REIT said.

The distribution per unit (DPU) for the six-month period came in at 6.136 Singapore cents, up 2.3 percent from 5.996 Singapore cents in the year-ago period, Frasers Centrepoint Trust said.

Daiwa had forecast net property income of S$126 million on revenue of S$173.4 million, with DPU of 6.02 Singapore cents.

Retail portfolio

The retail property portfolio had improved committed occupancy of 97.8 percent and end-March, up 0.6 percentage point from the previous quarter, the filing said. Rental reversion of the retail portfolio was an average 4.12 percent in the first half, the REIT said.

“Retail portfolio tenants’ sales from January 2022 to March 2022 have been maintained at above pre-Covid-19 levels since October 2021. The easing of dining-in restrictions from two to five per group in
November 2021 created higher shopper traffic and tenants’ sales, particularly for food & beverage trades,” the REIT said.

Outlook

Richard Ng, CEO of the REIT’s manager, said the results were healthy, supporting a higher distribution.

“We see improving market dynamics following the progressive easing of safe management measures and gradual normalisation of day-to-day activities. Sentiment among retailers is also improving, and this supports leasing demand for retail space, particularly at our dominant malls,” Ng said in the statement.

“Riding on the tailwind of the easing Covid-19 restrictions and the re-opening of the economy, FCT is well-positioned to navigate ahead,” Ng said.

Read more details of Frasers Centrepoint Trust’s results.