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Frasers Centrepoint Trust's net income down 5.7% to $31.6m in Q1
Losses were due to renovations at Northpoint.
Frasers Centrepoint Asset Management announced that the distribution per unit of Frasers Centrepoint Trust were up 0.7% in 1Q17 to 2.89 Singapore cents.
This came as gross revenue came down by 6.4% to $44.1m, due to lower contribution from Northpoint which is undergoing renovations. The upgrading is set to be completed by September this year and the group claims that there are already retailers showing keen interest by pre-committing their leases.
Meanwhile, Causeway Point’s revenue rose 3.4% and accounts for about 48% of the total revenue. Net property income for the quarter declined 5.7% YoY to $31.6m, in line with the lower revenue achieved. Higher net property income contributions from Causeway Point, Bedok Point and YewTee Point helped to offset the lower contributions from rest of the malls.
During 1Q17, 66 leases accounting for 12.4% of FCT’s total net lettable area (“NLA”) were renewed at an average rental reversion of 6.9%. Causeway Point, which accounted for 52% of the total NLA of the leases renewed during the quarter, achieved average rental reversion of 10.6%.
Frasers Centrepoint Asset Management CEO Dr. Chew Tuan Chiong said, “We are pleased that FCT has delivered steady performance for 1Q17, with higher DPU of 2.89 cents compared with 1Q16. The financial position of FCT remains strong with gearing level at 29.7% and we will continue to stay vigilant on capital market conditions and mall operations.
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