Frasers Centrepoint Trust (FCT) has announced distribution per unit (DPU) of 2.05 Singapore cents for its fourth quarter ended Sept 30 2008, an increase of 23 per cent from the same period last year, said manager Frasers Centrepoint Asset Management Ltd (FCAM).

Full year 2008 DPU rose 11 per cent to 7.29 cents.

Said chief executive of FCAM Christopher Tang: ‘FY2008 capped a successful year for FCT as we deliver another consecutive year of sustained growth’.

Strong performance at Causeway Point and excellent results at the reinvigorated Anchorpoint continued to drive gross revenue and net property income growth, according to FCT.

Fourth quarter gross revenue grew 11 per cent to S$22.1 million while net property income increased 10 per cent to S$14.1 million. FY2008 gross revenue and net property income were similarly up 9 per cent to S$84.7 million and S$56.6 million, respectively.

Rentals at Causeway Point were renewed at 15 per cent above preceding rates in Q408, reflecting the continued strong demand as well as tight supply situation in the suburban retail sector.

Anchorpoint’s Q408 gross revenues more than tripled to S$2.4 million from the year before, as rents increased over 40 per cent while the mall reverted to full occupancy after the completion of enhancement work.

Overall portfolio occupancy declined to 87.7 per cent as at 30 September 2008 from 94.6 per cent a year ago as a result of planned vacancy associated with enhancement work at Northpoint.

FCT said it has a conservative gearing level of 28.1 per cent and no refinancing pressures, It has no material refinancing and interest rate risks as its term loan amounting to S$260 million only expires in July 2011, and its associated interest rate is fully hedged.

The asset enhancement works at Northpoint is on schedule for completion by June next year, it said. Rentals at Northpoint are projected to increase 20 per cent to S$13.20 per square foot per month, translating to a 30 per cent increase in net property income to S$18.0 million. With close to 90 per cent of Northpoint’s post enhancement net lettable area already committed, Northpoint is set to provide a substantial boost to FCT’s income from the second half of FY2009 onwards.