Record returns from Frasers malls

Revenues from the six Frasers malls rose 12.1 per cent this year – the ninth successive annual increase since Frasers Centrepoint Trust listed.

Frasers Centrepoint Asset Management, the manager of Frasers Centrepoint Trust (FCT), announced a distribution per unit of 2.859 cents for the fourth quarter to September 30.

That’s 2.7 per cent higher than the same period a year ago and takes the total DPU for the financial year to a new-high of 11.608 cents, up 3.8 per cent year on year. This is the ninth consecutive year of distribution growth since FCT’s listing.

FCT has six suburban malls in Singapore with a total valuation of $2.4 billion: Causeway Point, Northpoint, Changi City Point, Bedok Point, YewTee Point and Anchorpoint.

FCT says its gross revenue for the fourth quarter rose 1.7 per cent year-on-year to $47.5 million and net property income rose 1.2 per cent to $31.7 million. Gross revenue for the full year was up 12.1 per cent to a new-high of $189.2 million, driven by steady rental income growth from the portfolio properties and full-year contribution from Changi City Point which FCT acquired in June 2014.

Net property income for the full year was up 11 per cent to $131.0 million.

The company says the performance of the FCT malls remained steady with overall portfolio occupancy at 96 per cent as at September 30. During the fourth qiuarter, 37 leases accounting for 3.9 per cent of FCT’s total net lettable area were renewed at an average rental reversion of 7.1 per cent. For the full year,, the portfolio average rental reversion was 6.3 per cent

FCAM CEO, Dr Chew Tuan Chiong, said FCT delivered another set of good results and stable growth for the year, continuing the growth trend in the past nine years.

“Our portfolio of suburban malls continues to perform well, achieving stable occupancy and positive rental reversions despite the current headwinds in the retail sector.

“Our portfolio shopper traffic was up 8.2 per cent year-on-year in the fourth quarter. Both Causeway Point and Northpoint registered double-digit shopper traffic increase and stronger growth than the other four malls during the quarter.”

He said tenants’ sales rose 2.1 per cent year on year for the three months to August.

Causeway Point registered the strongest tenants’ sales growth among all the malls in the portfolio. The Singapore economy avoided a technical recession in the third quarter, with advance GDP estimates from the Ministry of Trade and Industry showing a growth of 0.1 per cent on a quarter to quarter basis, a reversal from the 2.5 per cent contraction in second quarter.

“Notwithstanding the uncertain economic outlook, FCT’s well-located suburban malls which attract steady shopper traffic will contribute to the stability and sustainability of the portfolio’s rental income and occupancy rates,” said Chew.

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