FCT – BT

Frasers Centrepoint Trust’s Q1 DPU up 2.1%

FRASERS Centrepoint Trust (FCT) yesterday announced improved results for the first quarter ended Dec 31, 2010, even as portfolio occupancy slipped with one of its malls undergoing refurbishment.

Gross revenue in Q1 rose by 19 per cent year-on-year to $27.6 million, largely due to the acquisitions of Northpoint 2 and YewTee Point.

Net property income grew 17 per cent to $18.6 million. This pushed distribution to unitholders up 25 per cent to $15 million. Distribution per unit (DPU) in Q1 increased by 2.1 per cent to 1.95 cents.

FCT’s portfolio occupancy rate was 92 per cent as at Dec 31, down from 98 per cent a quarter ago, as refurbishment works at Causeway Point drove up vacancies there.

The makeover is ‘proceeding smoothly’, FCT said. As at December, 13 per cent of construction had been completed and retailers had committed to lease 92 per cent of space on the first level, where most of the works are taking place.

The refurbishment should be completed by December next year and FCT expects Causeway Point’s net property income to increase.

‘Although income is expected to be affected in the short term, the rejuvenated Causeway Point will provide enhanced income sustainability and growth prospects in years to come,’ said Chew Tuan Chiong, CEO of FCT’s manager.

FCT is also aiming to acquire Bedok Point in this calendar year. Retailers have committed to leasing around 97 per cent of space there, and some are in advanced negotiations to take up another one per cent.

As at Dec 31, FCT’s gearing ratio was 30.6 per cent. In November last year, it inked an agreement with several banks for a $264 million secured five-year loan facility, and will use that to pay down a $260 million debt expiring in July.

FCT closed unchanged on the stock market yesterday at $1.52.