Frasers Centrepoint Trust Posts Record Revenue

FraserCTLogoFrasers Centrepoint Trust (SGX: J69U), or FCT for short, recorded all-time high revenues and distribution per unit (DPU) for the third quarter.

The gross revenue in the quarter grew 12.4% year-on-year to a record $39.9m. Net Property Income (NPI) rose 15.4% to $28.5m from a year ago. The distribution to unit holders for the period will be $23.5m, up 9.8%. DPU is 2.85 cents, which is 9.6% higher than the 2.60 cents distributed last year.

The gross revenue grew due to higher contributions from Causeway Point and Northpoint. Revenue from Causeway Point rose 24.6% to $19.3 million, compared to last year. The growth was attributed to several factors such as higher occupancy after completion of the mall’s refurbishment and growth in rental, among others.

Revenue at Northpoint improved 5.9% to $12.4 million because of growth in rental and higher car park income.

FCT’s gearing level is 30.4% as of 30 June 2013. The average cost of borrowing for the third quarter was 2.72%. The weighted average debt maturity of FCT stood at 3.1 years as of 30 June 2013.

The net asset value stood at $1.54.

The portfolio occupancy improved to 98.4% in the quarter compared to 93.7% a year earlier. The weighted average lease expiry is 1.61 years by gross rent. The shopper traffic for the whole portfolio grew 5% to 21.7 million.

Dr Chew Tuan Chiong, Chief Executive Officer of Frasers Centrepoint Asset Management Limited, was upbeat in his assessment. He said: “Investors will be heartened that FCT continues to maintain the multi-year run of new-highs for revenue and DPU.

FCT sees the Singapore suburban retail sector to be supported by positive trends that include growing median household income, low unemployment rate, stable supply and demand of retail space and growing residential population in the suburban areas. FCT will continue to focus on active lease management and to look for acquisitions iin Singapore and abroad.

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