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Frasers Centrepoint Trust (FCT) saw its distribution per unit (DPU) drop 3.6 percent to 2.862 cents in the fourth quarter ended 30 September 2018, from 2.97 cents last year.
Gross revenue climbed 0.5 percent to $48.5 million, while net property income fell 4.9 percent to $32.9 million.
The lower net property income comes as property expenses during the quarter rose 17.4 percent to $15.6 million.
FCT attributed the increase to “higher property tax for Northpoint City North Wing, higher professional fees and more ad-hoc repair and replacement works carried out in the current quarter”.
For the full fiscal year 2018, DPU rose one percent to 12.015 cents from 11.90 cents previously. Gross revenue and net property income grew 6.5 percent and 5.9 percent to $193 million and $137 million respectively.
“Northpoint City North Wing was the key growth driver, its revenue and net property income, excluding Yishun 10 retail podium, grew 26.5 percent and 35.1 percent year-on-year respectively, from higher average rental and improved occupancy following the completion of the asset enhancement initiative (AEI) works last year,” said FCT.
“The other two larger malls Causeway Point and Changi City Point also achieved higher revenue for the year, with 2.3 percent and 5.0 percent year-on-year growth revenue respectively.”
Looking ahead, FCT expects the performance of its suburban malls to remain stable.
FCT revealed that it achieved a portfolio occupancy of 94.7 percent as at 30 September 2018.
Northpoint City North Wing registered the biggest improvement in occupancy at 96.5 percent from 81.6 percent. Occupancy at Changi City Point also improved from 88.5 percent to 93.8 percent as new leases commenced.
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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