2 Frasers Centrepoint Reits post lower DPU

Reduced occupancy at some properties hit third-quarter revenue at two real estate investment trusts (Reits) that are part of the Frasers Centrepoint group.

Turnover at Frasers Centrepoint Trust (FCT), which has six suburban malls, slipped 3.3 per cent to $43.6 million for the three months to June 30, compared with a year earlier.

The decline was largely the result of refurbishment work at Northpoint mall in Yishun, which will be completed in September, the trust manager said yesterday.

Net property income fell by 1.3 per cent year on year to $30.8 million, leading to a 1.3 per cent decline in distribution per unit (DPU) to three cents, down from 3.04 cents in the same period last year.

Dr Chew Tuan Chiong, chief executive of trust manager Frasers Centrepoint Asset Management, noted that despite the challenging retail environment, "the suburban retail market remains resilient as this sector focuses more on necessity spending and increasingly on food and beverages".

FCT's portfolio comprises the Causeway Point, Northpoint, Changi City Point, Bedok Point, YewTee Point and Anchorpoint malls.

Overall occupancy was flat at 87.1 per cent as at June 30.

  • AT A GLANCE (FCT)

  • GROSS REVENUE: $43.6 million (-3.3%)

  • NET PROPERTY INCOME: $30.8 million (-1.3%)

  • DISTRIBUTION PER UNIT: 3 cents (-1.3%)

  • AT A GLANCE (FCOT)

  • GROSS REVENUE: $38.3 million (-0.6%)

  • NET PROPERTY INCOME: $27.9 million (-0.8%)

  • DISTRIBUTION PER UNIT: 2.40 cents (-0.4%)

Quarterly earnings per unit was 2.47 cents, down from 2.56 cents a year earlier. Net asset value per unit shrank to $1.92 as at June 30, from $1.93 at end-September last year.

Frasers Commercial Trust (FCOT) also reported third-quarter results yesterday.

Revenue dipped 0.6 per cent to $38.3 million from a year earlier, owing to lower occupancy rates at Alexandra Technopark - which is under renovation - China Square Central in Singapore and Central Park in Perth.

Net property income for the three months to June 30 fell 0.8 per cent to $27.9 million while DPU for the quarter was marginally lower at 2.40 cents.

The other three commercial assets in the trust's portfolio are 55 Market Street here, and Caroline Chisholm Centre in Canberra and 357 Collins Street in Melbourne.

Its properties in Australia had put up a better showing in the third quarter, with revenue up 5.3 per cent from a year earlier, due to the stronger Australian dollar.

Quarterly earnings per unit was 2.04 cents, down from 2.07 cents in the fiscal third quarter of 2016.

Unit holders' funds per unit was unchanged from September last year, at $1.55 as at June 30.

FCT units closed one cent higher at $2.14, while FCOT shed half a cent to $1.425 before the financial results were announced.

A version of this article appeared in the print edition of The Straits Times on July 25, 2017, with the headline '2 Frasers Centrepoint Reits post lower DPU'. Print Edition | Subscribe