The manager of Frasers Centrepoint Trust (FCT) said that its performance for the final three months of last year remained resilient, with retail portfolio occupancy stable at 96.4 per cent.
An exchange filing on Thursday said total tenants' sales remained stable near pre-pandemic levels, falling 1.3 per cent year on year last month. At the peak of the pandemic in May last year, total tenant sales had fallen 57.1 per cent year on year.
Shopper traffic is at 60 per cent to 70 per cent of pre-Covid-19 levels, given the safe distancing measures in place, the manager added.
Meanwhile, FCT renewed nearly a quarter of expiring leases which were due in financial year 2021 in the quarter that ended on Dec 31.
FCT added that it had extended its debt maturity to three years in the first quarter of this year, compared with 2.1 years in the previous quarter, and reduced the cost of borrowing from 2.4 per cent to 2.2 per cent. Its total borrowings are over $2.2 billion, compared with nearly $1.3 billion in the last three months of last year.
FCT completed its acquisition of AsiaRetail Fund and significantly expanded its portfolio, nearly doubling its total assets, it said. It also completed the divestment of Bedok Point on Nov 9 and announced the divestment of Anchorpoint for $110 million on Dec 23.
Looking ahead, FCT's manager expects dominant suburban malls to remain resilient.
"Post-Covid-19 trends include focus on well-being and healthy living products and services, higher demand for products and services that support work from home and omni-channel retailing," it said.
FCT's portfolio of physical malls, as well as its recently launched e-store and its enhanced app help to form a strong combination of physical and digital retail offerings, it added.
At the same time, the easing of measures in phase three, allowing for an increase in mall capacity and dining group size, is expected to be positive for retail performance, it said.
"The leasing environment remains challenging due to economic headwinds and retailer consolidation. However, the location, connectivity, dense catchment and essential positioning of FCT malls accords dominance and resilience to their performance," said its manager.
FCT is one of the largest suburban retail mall owners in Singapore, operating malls such as Causeway Point, Tampines 1, Tiong Bahru Plaza and Yew Tee Point.
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