Frasers Centrepoint Trust NPI down 1.1% to $34.6m in Q3

The absence of property tax refund hit income.

Frasers Centrepoint Trust’s (FCT) net property income (NPI) slipped 1.1% YoY to $34.6m in Q3 from $35m in 2018, an announcement revealed. However, revenue edged up 1.6% YoY from $48.32m to $49.1m.

Income available for distribution jumped 12.4% YoY from $28.28m to $31.78m, whilst distribution per unit (DPU) rose 5.8% YoY to $0.03 from $0.0305.

Also read: Frasers Centrepoint Trust NPI grew 4.8% to $36.44m in Q2

It blamed its dismal NPI performance on higher property expenses arising from the absence of property tax refund, which occurred in the same period in 2018. Meanwhile, the rise in revenue was attributed to higher contributions from Northpoint City North Wing and Changi City Point. The portfolio occupancy rate of the properties as at June 2019 was 96.8%, higher than the 94% recorded for the same period in 2018.

During Q3, 49 leases accounting for 6.8% of FCT’s total net lettable area (NLA) were renewed at an average rental reversion of 3.1%, bringing the portfolio average rental reversion for 9M FY 2019 to 4.7%.

FCT also noted that portfolio shopper traffic was 6.1% higher YoY during the quarter, primarily due to increase at Northpoint City North Wing and YewTee Point. The portfolio tenants’ sales for the three-month period from March 2019 to May 2019 was 2.9% higher YoY.

“We are excited to have executed two significant acquisitions during the quarter. First, the completion of the acquisition of a 21.13% stake in PGIM ARF which owns and operates five suburban malls in Singapore and second, and the acquisition of the one-third stake in Waterway Point,” Richard Ng, CEO of Frasers Centrepoint Asset Management (FCAM), added.

“We have also completed FCT’s largest equity fund raising exercise, raising $437.4m in gross proceeds which were utilised to finance the two acquisitions,” he said.

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FCT completed the acquisition of a one-third interest in Waterway Point, a suburban shopping mall in Punggol, Singapore on July 2019. The acquisition is expected to achieve greater income diversification for FCT’s portfolio and add another 200 tenants to its tenant base.

The firm’s property portfolio consists of suburban retail properties in Singapore, which includes Causeway Point, Northpoint City North Wing and Yishun 10 Retail Podium, Anchorpoint, YewTee Point, Bedok Point, Changi City Point and Waterway Point (⅓ -interest).