FCT – BT

FCT reports 1.7% rise in Q2 income

It expects to sustain income levels despite downturn

DESPITE lower gross revenue, Frasers Centrepoint Trust (FCT) has posted a 1.7 per cent rise in distributable income to $12.2 million for its fiscal second quarter ended March 31.

Distribution to unitholders for the three months stood at $11.6 million, after a retention of 5 per cent of this distributable income by FCT.

This is still 7.3 per cent higher than the $10.8 million distribution to unitholders for Q2 last year. As a result, distribution per unit edged up to 1.86 cents, from 1.75 cents a year ago.

FCT said its gross revenue for the quarter slipped 2.4 per cent to $21.1 million largely due to planned vacancies at Northpoint as a result of ongoing addition and alteration works to enhance and reposition the mall.

This was partly offset by an average increase of 7.3 per cent in rentals among replacement and renewal leases. As at end-March, occupancy rate of the properties in its portfolio was 93.4 per cent, up from 88.7 per cent as at end-December.

Property expenses fell 10.9 per cent to $6.4 million. Including share of associate’s results, total return after tax dipped 2.3 per cent to $14.1 million.

The performance brings its half-year income currently available for distribution to $22.7 million, a dip of 2 per cent. Total distribution to unitholders in the six months to March climbed 5.9 per cent to $22 million. Gross revenue dipped 2.8 per cent to $40.6 million.

Despite the challenging economic climate, FCT is expected to sustain its income performance. Said Christopher Tang, chief executive of the trust manager: ‘FCT is well positioned to meet the prevailing challenging economic conditions with its defensive suburban retail profile, robust capital structure and the completion of Northpoint’s enhancement works.’

Shares of FCT went up two cents to 69.5 cents yesterday.