Frasers Centrepoint Trust’s first-half DPU dips 0.1%
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The retail real estate investment trust’s gross revenue and net property income improved.
PHOTO: MERCATUS CO-OPERATIVE
Vivienne Tay
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SINGAPORE - Frasers Centrepoint Trust’s (FCT) distribution per unit inched down 0.1 per cent to 6.13 cents for the first half ended March 31, from 6.136 cents the year before.
The retail real estate investment trust’s gross revenue and net property income improved. However, property expenses were higher year on year, financial results released on Wednesday showed.
Gross revenue was up 6.5 per cent to $187.6 million from $176.2 million in the year-ago period.
This was mainly due to higher staggered rent and higher rentals from renewed leases, along with higher atrium income as events resumed on March 29, 2022.
Meanwhile, net property income grew 5.7 per cent year on year to $138 million for the half year, from $130.5 million. Distributable income increased 0.3 per cent to $104.7 million, from $104.4 million in the same period a year ago.
The manager had retained $3 million in tax-exempt income available for distribution to unit holders, but released $1.7 million of income available for distribution previously retained in the second half of 2022.
The distribution will be paid out on May 30, after books closure on May 5.
“Despite the headwinds from rising interest rates and operating costs, we saw good traction in lease renewals and signing of new tenants amid improved retailer sentiments and healthy consumer spending,” said Mr Richard Ng, chief executive of FCT’s manager.
He also noted an increasing trend of consumers prioritising their spending on essential goods and services, which bodes well for FCT’s retail portfolio.
FCT units closed down 1.7 per cent at $2.28 on Wednesday. THE BUSINESS TIMES
