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10 Things Investors Should Know About Frasers Centrepoint Trust’s Latest Earnings

Frasers Centrepoint Trust (SGX: J69U) – which owns six retail properties in Singapore – achieved a record distribution per unit (PDU) for the financial year ended 30 September 2017 (FY2017).

Here are 10 things to note from the latest earnings release:

1. Gross revenue for FY2017 declined 1.2% year-on-year to S$181.6 million. The fall was due to the planned vacancies together with the asset enhancement initiatives at Northpoint City North Wing.

2. Net property income slipped 0.2% to S$129.6 million.

3. Distribution to unitholders, however, increased 1.6% to S$109.8 million.

4. DPU grew 1.2% to 11.90 cents, marking the eleventh consecutive year of DPU growth and the highest amount achieved since listing in 2006.

5. The net asset value (NAV) per unit was at S$2.02, as of 30 September 2017. A year ago, NAV per unit came in at S$1.93. The increase for the year was mainly due to surplus on revaluation of portfolio properties.

6. As of 30 September 2017, the gearing ratio stood at 29%, up from 28.3% seen at the end of September 2016.

7. The weighted average debt maturity was 2.3 years, and the all-in average cost of borrowings came in at 2.3%.

8. Portfolio occupancy rate, as of 30 September 2017, was 92.0%, up from 89.4% seen a year ago.

9. FY2017’s average rental reversion came in at 5.1%, the lowest since FY2007. In FY2016, average rental reversion was 9.9%.

10. 98.7 million shoppers visited the trust’s six malls in FY2017, down from 102 million shoppers during the same period last year.

Frasers Centrepoint Trust’s units are now selling at S$2.22, translating to a price-to-book ratio of 1.1 and a trailing distribution yield of 5.4%.

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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. Motley Fool Singapore contributor Sudhan P doesn’t own shares in any companies mentioned.