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Frasers Centrepoint Trust’s (FCT) net property income dipped 1.3 percent year-on-year to $30.79 million in the third quarter ended 30 June (Q3 2017), revealed an SGX filing on Monday (24 July).
Gross revenue for the period slid 3.3 percent on an annual basis to $43.55 million, mainly due to ongoing upgrading works at Northpoint mall. But this was offset by higher income from Causeway Point and better contributions from the Yishun 10 retail podium.
“We see higher shopper traffic at Causeway Point, Changi City Point as well as YewTee Point, compared with the same period a year ago,” said Chew Tuan Chiong, CEO of Frasers Centrepoint Asset Management.
He revealed that Northpoint’s revamp is expected to be completed in September, with more than 90 percent of the reconfigured areas being pre-committed.
However, FCT’s distributable income declined slightly by 1.0 percent to $27.67 million in Q3 2017, while distribution per unit (DPU) dipped to $3 from $3.04 in the same period a year ago. Occupancy level also slipped to 87.1 percent from 87.2 percent in the preceding quarter.
For the first three quarters of the financial year, FCT’s net property income dropped 3.5 percent to $94.98 million, while gross revenue fell 4.2 percent to $133.35 million on a yearly basis.
At the same time, distributable income slid 0.1 percent to $82.32 million, while DPU declined slightly to $8.93 from $8.95 in the first nine months of 2016. Nevertheless, FCT’s portfolio of properties achieved an average rental reversion of 4.3 percent during the nine-month period.
Moving forward, Chew expects Changi City Point to benefit from the opening of the Downtown Line 3 (DTL3) on 21 October 2017, as the shopping mall is situated next to the Expo station on DTL3.
Romesh Navaratnarajah, Senior Editor at PropertyGuru, edited this story. To contact him about this or other stories, email romesh@propertyguru.com.sg
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