FCT – BT

Causeway Point helps FCT post record quarterly, full-year DPUs

Q4 DPU rises 8.8% to 2.35 cents, taking FY11 DPU to 8.32 cents; Q4 NPI jumps 13.7%

FRASERS Centrepoint Trust (FCT) yesterday posted record quarterly and full-year distributions per unit (DPUs), helped by the strong performance upswing of Causeway Point.

For the fourth quarter ended September, FCT’s DPU was 2.35 cents, an 8.8 per cent year-on-year increase from Q4 2010’s 2.16 cents.

This brings the total DPU for the financial year ended September (FY 2011) to a record 8.32 cents, up 1.5 per cent from FY 2010’s 8.20 cents. FCT said this represents the fifth consecutive year of DPU growth since its listing.

Distribution to unitholders for the quarter rose 10.8 per cent to $18.3 million. Net property income (NPI) climbed 13.7 per cent to $25.3 million.

Causeway Point, FCT’s largest asset, posted a strong quarterly performance, following the re-opening of its revamped sections (basement and first two levels of the mall).

It posted revenue of $17.3 million, 61.7 per cent higher than the preceding quarter. Similarly, its NPI improved 95.6 per cent over Q3 2011 to $13.3 million.

As at Sept 30, 65.5 per cent of Causeway Point’s refurbishment works were completed, with full completion expected end next year, said FCT. The next phase of work is shifted to higher levels, where any disruption to revenue will be more muted.

A sharp recovery in occupancy at Causeway Point – from 78.3 per cent the previous quarter to 92.0 per cent – also contributed to an overall improvement in FCT’s portfolio occupancy, which as at end September stood at 95.1 per cent, up from 87.6 per cent the previous quarter.

FCT’s total assets grew 17.9 per cent year on year to about $1.79 billion, on higher property valuation and the acquisition of Bedok Point. FCT recognised a revaluation surplus of $97.2 million (after adjustments), with Causeway Point contributing $59.2 million.

In the acquisition pipeline is Changi City Point and The Centrepoint, which will feed an additional 602,794 sq ft of net lettable area (NLA) into FCT’s portfolio of 879,780 sq ft NLA.

Following the private placement of 48.0 million new units issued on Sept 23 to part finance the Bedok Point acquisition, pre-existing unitholders will receive an advance distribution of distributable income for the period of July 1 to Sept 22.

The books closure date for the advance distribution is Sept 22 and it will be paid on Nov 8. New units will not be entitled to this advance distribution.

The next distribution will comprise distributable income from Sept 23 to Dec 31. Quarterly distributions will resume thereafter.

FCT ended trading on the stock market yesterday at $1.47, gaining 1.5 cents.