Shops back at Causeway Point after renovation exodus

Frasers Centrepoint Trust’s 1QFY12 revenue climbs up by 30% YoY as occupants go back to renting space inside the mall.

FCT also posted 1QFY12 DPU of 2.20¢ on the back of the strong performance in Causeway Point, as well as added contribution from Bedok Point together with positive rental reversion.

In a statement, DMG Research said the “Worst is over in CWP” as merchants return to setting up shop inside the mall.

The refurbishment of the mall, which began in early 2011, caused its occupancy rate to drop to 70%.

Since then, however, both occupancy and rental rate have seen a positive growth. Occupancy rate has risen back to 95.5% in December 2011 while rental rates have increased by c.9.3% for leases renewed.

The refurbishment of CWP is on schedule and is expected to be completed by December 2012.According to the analyst, the AEI at CWP is expected to bring in an additional NPI of S$9.3m upon its completion. 

Despite the encouraging numbers in CWP, FCT announced that it does not have current plans for acquisition or major AEIs in FY12 due to the uncertainty in the global economy.

DMG Research, however, commended the trust’s “Superb management and concentration of portfolio in suburban areas,” noting that FCT’s impeccable portfolio management expertise is recently demonstrated as it lowered its FY12 rental expiry profile from 32.2% of total gross income to 18.1%.

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Tags: Causeway Point, FCT, Frasers Commercial Trust, DMG Research