A “significant” improvement in Northpoint City occupancy boosted second-quarter sales for Frasers CentrePoint Trust (FCT).
Its manager, Frasers Centrepoint Asset Management, says there was higher revenue and net property income with an average portfolio rental reversion of 9.1 per cent.
Gross revenue was up 6.3 per cent year on year to $48.6 million for the quarter, while net property income rose 6.9 per cent to $34.8 million. The growth was driven mainly by a 31.7 per cent revenue increase from Northpoint City North Wing (including contribution from Yishun 10 retail podium), as its occupancy improved significantly after enhancement works. Causeway Point, which accounts for 45 per cent of FCT’s revenue, achieved 1.3 per cent growth in revenue on higher gross rent revenue. Average portfolio rental reversion was up 9.1 per cent and improved occupancy to 94 per cent.
During the quarter, 37 leases accounting for 6.2 per cent of FCT’s total net lettable area, were renewed at an average rental reversion of 9.1 per cent.
Causeway Point had 18.9 per cent rental reversion during the period, mainly because of an anchor tenant renewing its lease. Other malls with positive rental reversions include Changi City Point (6.2 per cent), YewTee Point (5.7 per cent) and Anchorpoint (1.5 per cent). Northpoint City North Wing and Bedok Point were in negative territory with reversions down 6.1 and 12.5 per cent respectively.
Portfolio occupancy at the end of March improved to 94 per cent, mainly because of occupancy improvement at Northpoint City North Wing. Improved shopper traffic at the other larger malls was up 0.5 per cent. Causeway Point and Changi City Point saw an average increase of 3 per cent in shopper traffic.
Portfolio tenants’ sales from December to February, excluding Northpoint City North Wing, fell 1.2 per cent. Aggregate tenant sales in Northpoint City North Wing jumped 47.8 per cent because of increased occupancy, compared to the same period a year ago when the mall was still undergoing enhancement work.