Frasers Centrepoint Trust posts 5.5% rise in DPU for Q4

Frasers Centrepoint Trust (FCT) posted a 5.5 per cent rise in its distribution per unit (DPU) for the fourth quarter, with higher rental income and improved occupancy at Northpoint City contributing to growth.

For the three months ended Sept 30, DPU stood at 2.97 cents, up from 2.815 cents the year before.

Full-year DPU was 11.9 cents, up from 11.764 cents a year ago, making it the highest DPU achieved since FCT's listing in 2006.

Net property income for the fourth quarter rose by 10 per cent to $34.6 million and distributable income was up 6.1 per cent to $27.5 million compared to the fourth quarter last year.

Gross revenue for the fourth quarter was up 8.1 per cent year-on-year to $48.2 million.

Frasers Centrepoint Asset Management (FCAM), the manager of FCT, said in a Singapore Exchange filing yesterday that besides the higher rental income and improved occupancy at Northpoint City, growth was lifted by Causeway Point and Changi City Point, which registered year-on-year revenue growth of 2.5 per cent and 13.6 per cent respectively.

Full-year revenue was 1.2 per cent lower year on year at $181.6 million, due to the planned vacancies in conjunction with the asset enhancement initiatives at Northpoint City's North Wing.

  • AT A GLANCE

  • GROSS REVENUE: $48.2 million (+8.1%)

    NET PROPERTY INCOME: $34.6 million (+10%)

    DISTRIBUTION PER UNIT: 2.97 cents (+5.5%)

Net property income for the full year fell 0.2 per cent to $129.6 million, while distributable income increased 1.6 per cent to $109.8 million.

The portfolio occupancy as at Sept 30 was 92 per cent, higher than the 87.1 per cent registered in the prior quarter.

Mr Chew Tuan Chiong, CEO of FCAM, said: "FY2017 was a challenging year, especially with the slower retail market environment and the (asset enhancement initiative) works at Northpoint North Wing."

While the general retail sector continues to grapple with structural challenges, such as the growing popularity of e-commerce, "FCT's well-located suburban malls continue to remain resilient", the trust highlighted.

An OCBC Investment Research report yesterday said it will be reviewing its "buy" rating and $2.28 fair value estimate on FCT.

The units ended 1.3 per cent lower at $2.21.

A version of this article appeared in the print edition of The Straits Times on October 26, 2017, with the headline 'Frasers Centrepoint Trust posts 5.5% rise in DPU for Q4'. Print Edition | Subscribe