3 Must-See Slides From Frasers Centrepoint Trust’s Latest Presentation

Late last month, Frasers Centrepoint Trust (SGX: J69U) released its first quarter results for its fiscal year ending 30 September 2018 (FY2018).

Frasers Centrepoint Trust is a real estate investment trust (REIT) that owns six suburban retail malls in Singapore. Its properties include Causeway PointNorthpoint City North Wing (including the Yishun 10 Retail Podium), and Changi City Point. The REIT also holds a 31.15% stake in Hektar Real Estate Investment Trust (KLSE: 5121.KL), a retail-focused REIT listed in Malaysia.

The Manager of the Fraser Centrepoint Trust also provided a presentation on its latest results. I picked out three slides on the REIT’s business that I think investors should pay attention to.

The first slide shows a high-level summary of Frasers Centrepoint Trust’s income statement for the first quarter of FY2018:

Source: Frasers Centrepoint Trust’s results presentation

Overall, we can see that all its metrics were up compared to the same period last year.

The positive performance was mainly driven by the 39.5% year on- year revenue increase from Northpoint City North Wing, following the completion of the asset enhancement initiative (AEI) works, which was further boosted by improvements in mall occupancy. Causeway Point and Changi City Point also registered year-on-year revenue growth of 1.9% and 5.8% respectively, and contributed to revenue growth.

The next slide I want to look at shows the occupancy rates for each mall in the first quarter of FY2018.

Source: Frasers Centrepoint Trust’s results presentation

From the above, we can see that the occupancy rates have gradually improved over the last few quarters. Most notably, the completion of AEI of Northpoint City North Wing resulted in a jump in occupancy rates from 81.6% as at September 2017 to 86.8% in December 2017.

Last but not least, the slide below shows the REIT’s rental reversions for its portfolio.

Source: Frasers Centrepoint Trust’s results presentation

As investors, we want to grow see the REIT grow its rental rates over the long run. For the period above, Fraser Centrepoint Trust has managed to maintain positive rental reversion for each year, including the latest quarter.Nevertheless, investors might want to pay attention to the decline in growth over the years, especially in the latest quarter when rental reversion rate was “just” 1%.

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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 Lawrence Nga doesn’t own shares in any companies mentioned.