Frasers Centrepoint Trust's third-quarter DPU edges up 1.8%

Distribution per unit (DPU) at Frasers Centrepoint Trust (FCT) for the April-June period - its financial third quarter - edged up 1.8 per cent to 3.053 cents from a year ago.

The quarter saw its enhanced Northpoint City North Wing driving net property income growth.

The trust's gross revenue rose 10.9 per cent year-on-year to $48.32 million on the back of higher contributions from its three larger malls, in particular Northpoint City North Wing. Net property income climbed 13.7 per cent to $35 million as revenue growth outpaced the increase in property expenses. Property expenses for the three months totalled $13.3 million, an increase of 4.3 per cent, due mainly to higher utilities tariff rates and property manager's fees.

Distribution to unit holders for the quarter was up 2.2 per cent at $28.28 million. During the quarter, 37 leases accounting for 4.6 per cent of FCT's total net lettable area (NLA) were renewed at an average rental reversion of 5 per cent.

Northpoint City North Wing saw rental reversion of 25.8 per cent, largely because one lease, which accounted for about half of the mall's NLA, was up for renewal. Portfolio occupancy as of June 30 was 94 per cent, against 87.1 per cent a year ago, due mainly to higher occupancy at Northpoint City North Wing. Portfolio shopper traffic - excluding Northpoint City North Wing - edged up 1.2 per cent from a year ago.

The other larger malls - Causeway Point and Changi City Point - saw an average increase of 5 per cent in shopper traffic, while the smaller malls saw lower traffic.

Dr Chew Tuan Chiong, chief executive of Frasers Centrepoint Asset Management, said: "We are pleased that the three larger malls continue to register good growth momentum and higher shopper traffic.

  • AT A GLANCE

  • DISTRIBUTION PER UNIT: 3.053 cents (+1.8%)

    GROSS REVENUE: $48.32 million (+10.9%)

"Northpoint City North Wing experienced strong tenants' sales growth and the occupancy is expected to improve to around 97 per cent from the current 92.5 per cent as we have secured pre-committed leases. Changi City Point is also seeing good shopper traffic growth and tenants' sales."

Unit holders will receive their distribution on Aug 29.

FCT closed trading at $2.27 yesterday, up two cents.

A version of this article appeared in the print edition of The Straits Times on July 25, 2018, with the headline 'Frasers Centrepoint Trust's third-quarter DPU edges up 1.8%'. Print Edition | Subscribe