Earnings Brief: Frasers Centrepoint Trust, Mapletree Industrial Trust and Suntec Real Estate Investment Trust

Yesterday, Frasers Centrepoint Trust (SGX: J69U) and Mapletree Industrial Trust (SGX: ME8U) announced their first-quarter and third-quarter earnings respectively. Meanwhile, Suntec Real Estate Investment Trust (SGX: T82U) released its full-year earnings this morning.

Here are some quick highlights from the earnings announcements:

Frasers Centrepoint Trust (FCT)

a) Gross revenue for the first quarter ended 31 December 2017 rose 8.7% year-on-year to S$47.9 million.

b) Net property income (NPI) grew from S$31.6 million last year to S$34.5 million in the latest quarter, which translates to a growth of 9.1%.

c) The improvement in gross revenue and NPI were mainly due to revenue growth from Northpoint City North Wing, Causeway Point and Changi City Point. Asset enhancement initiatives at Northpoint City North Wing have been completed, and occupancy at the mall has improved as a result.

d) Distribution to unitholders went up 4.3% to S$27.8 million while distribution per unit (DPU) went north by 3.8% to three Singapore cents.

e) As at 31 December 2017, the net asset value per unit was S$2.02, the gearing stood at 29.4%, and the portfolio occupancy was 92.6%.

f) The retail REIT’s manager had this to say about the latest performance:

“We are pleased that FCT continues to deliver steady performance and a higher DPU for 1Q18. We are also excited that the improvement in occupancy at Northpoint City North Wing is in line with our expectations, and its higher revenue contribution will provide an uplift in FCT’s performance for FY2018. Going forward, we will continue to focus on improving the performance of the Trust.”

Mapletree Industrial Trust (MIT)

a) Gross revenue for the third quarter ended 31 December 2017 grew 8.3% year-on-year to S$91.5 million while NPI surged 11.7% to S$70.9 million. The uptick was due to “revenue contribution from the build-to-suit project for HP Singapore (Private) Limited, partially offset by lower portfolio occupancy”.

b) Distributable income went up from S$51.1 million last year to S$53.5 million in the latest period.

c) DPU increased 1.8% to 2.88 Singapore cents.

d) As at 31 December 207, the net asset value per unit came in at S$1.42, the aggregate leverage ratio was 33.8% while the overall portfolio occupancy stood at 90.5%.

e) The industrial REIT’s manager gave some updates on the portfolio, saying:

“The completion of our first overseas acquisition of 14 data centres in US is in line with the expansion of MIT’s investment strategy and broadens our presence in the growing data centre sector. The acquisition portfolio with long leases on freehold land will strengthen MIT portfolio and enhance the stability of returns to Unitholders. Together with the development projects, this strategic acquisition will help to mitigate headwinds faced by the Singapore industrial portfolio.”

Suntec Real Estate Investment Trust

a) For the financial year ended 31 December 2017, gross revenue went up 7.8% year-on-year to S$354.2 million. The improvement was mainly due to rental contribution from Australia’s 177 Pacific Highway and higher contribution from Suntec City office, which were partially offset by lower retail contribution.

b) NPI came in at S$244.5 million for the year, which was an increase of 8.9%.

c) Distributable income rose 3.7% to S$263 million.

d) However, DPU was flat at 10.005 Singapore cents due to an enlarged units base from convertible bonds that were converted to new units.

e) As at 31 December 2017, the net asset value per unit was S$2.119, and the aggregate leverage ratio stood at 36.4%.

f) The overall office portfolio occupancy was 99.2% while that of the retail component came in at 98.8%.

g) Suntec REIT’s manager commented on the latest set of results and the REIT’s expansion in Australia:

“We are pleased to have delivered a higher distributable income for 2017. While the Singapore assets continued to provide steady income, the properties in Australia, 177 Pacific Highway and Southgate Complex contributed to our robust performance for the year.

In 2017, we expanded our footprint in Australia with the acquisition of a 50% interest in the premium-grade 477 Collins Street in Melbourne which is currently under construction. This is a strategic fit with our existing portfolio of high quality assets and enhances Suntec REIT’s income and geographical diversification.”

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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.