Thanks to reduced utility tariffs, fewer maintenance works.
Frasers Centrepoint Trust (FCT) has hit the ground running in FY16, reporting that its Q1 net property income (NPI) inched up 2% to $33.5m, thanks to a pullback utility tariff rates and fewer maintenance and repair works.
According to a report by OCBC, FCT saw robust rental reversions in FY15, although occupancy dipped. Occupancy rates for its portfolio fell 1.9 percentage point to 94.5%, with the main drag coming from Bedok Point and Changi City Point.
For Bedok Point, FCT nabbed a gym operator as a new anchor tenant. Fitting out works are underway, and operations are expected to start in March this year. This boosts the mall’s occupancy to about 85%. OCBC notes, though, that the mall has yet to stabilise and there could still be some volatility in it occupancy rate ahead.
Meanwhile, rental reversions stood at 13.7% in Q1, even with the tough leasing landscape. Only Bedok Point saw negative rental reversions.
Shopper traffic also climbed 8% YoY to 26.4m, while tenants’ sales grew inched up 1.9% from September to November 2015.
Looking ahead, FCT will roll out asset enhancement initiatives for Northpoint in March this year, and the process will last 18 months until September 2017. Based on FCT management’s estimate, average mall occupancy will stand at around 76% from March to September 2016.
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