3Q07: Topline In Line With Forecast

Gross revenue of S$18.9m and NPI of S$12.6m in line with forecast. FCT reported a gross revenue of S$18.9m and NPI of S$12.6m, in line with forecast. DPU, however, was 14.4% above forecast at 1.67 Scts. Revenue growth was mainly a result of more than 90% of new and renewed leases from Causeway Point, which secured rental renewal rates of more than 10% above preceding rates. Northpoint also extended five expiring leases for a period of one year in anticipation of its pending asset enhancement in FY08.

Key driver from acquisitions and asset enhancements. FCT completed its acquisition of 27% stake in Hektar REIT in Jun 07, Malaysia’s only pure retail REIT listed consisting of suburban regional malls, Subang Parade in Selangor and Mahkota Parade in Malacca. Going forward for the next three years, we believe that the growth driver will come from acquisitions of Northpoint 2, Yew Tee Mall, Bedok Mall and Centrepoint, and also continued asset enhancements to Causeway Point, Northpoint and Anchorpoint.

Frasers Centrepoint Trust 3Q07 Results

• 3Q07 DPU of 1.67 cents, up 14.4% from IPO forecast of 1.46 cents
• Track record of strong organic growth continues

Singapore, 24 July 2007 – Frasers Centrepoint Asset Management Ltd. (“FCAM”), the Manager of Frasers Centrepoint Trust (“FCT”), is pleased to announce that FCT’s distributable income for third quarter 2007 (period 1 April to 30 June 2007), was S$10.3 million. This translates to a distribution per unit (“DPU”) of 1.67 cents, an increase of 14.4% compared to the forecast.

Gross revenue for third quarter 2007 was S$18.9 million, and net property income was S$12.6 million, in line with the forecast. More than 90% of new and renewed leases in third quarter 2007 were from Causeway Point, which secured rental renewal rates of more than 10% above preceding rental rates to continue the trend of strong and sustainable rents at FCT’s malls. In the quarter, Northpoint extended five expiring leases for a period of one-year in anticipation of its pending asset enhancement in FY 2008.

High Portfolio Occupancy Rates On the Back of Rising Demand
The weighted average occupancy rate of FCT’s portfolio was 92.9% as at 30 June 2007, with Causeway Point and Northpoint achieving occupancy rates of 100.0% and 99.0% respectively. Anchorpoint’s occupancy rate was 39.1% pursuant to the exercise to vacate sections of the mall for asset enhancement and repositioning works.

Asset Enhancement Initiative Update: Anchorpoint
The asset enhancement initiative to reposition Anchorpoint with a village-mall concept offering a wider range of F&B and fashion options is on schedule for completion at the end of November 2007. Close to 80% of the mall has been committed or in advanced stages of discussions. Confirmed major tenants include Cold Storage and Kou Fu which will operate a supermarket and food court respectively. Other new comers to Anchorpoint include The Coffee Connoisseur (TCC), Xin Wang, Kopi Alley, Times the Bookstore, SK Jewellery, Capitol Optical, Club Marc, Reading Place and Jollibean. Anchorpoint’s asset enhancement is expected to increase the average rental rate of the mall by over 35% to approximately S$7.00 per sq ft.

Acquisition of Hektar REIT
In June 2007, FCT announced the completion of the acquisition of 86.4 million units or 27% of the issued units in Hektar Real Estate Investment Trust (H-REIT), Malaysia’s only pure retail REIT listed on Bursa Malaysia Securities Berhad. The cost of the investment was RM104.5 million (approximately S$46.6 million¹) at RM1.21 per H-REIT unit. The cornerstone investment in H-REIT provides FCT with a yield-accretive investment in an underlying portfolio of prominent and high quality suburban regional malls in Malaysia, namely Subang Parade in Selangor and Mahkota Parade in Melaka. These retail malls have a total net lettable area of approximately 944,500 sq ft, house more than 230 major international and domestic retailers, and enjoy a combined visitor traffic of more than 279,000 persons per week. H-REIT is expected to increase FCT’s DPU by 0.21 cents on an annualized basis, or 3.5% over the forecast for the year ending 30 September 2007 as disclosed in FCT’s prospectus dated 27 June 2006.

“We are pleased with the continuing development and prospects of FCT. Occupancies and rental reversions remain strong. Anchorpoint’s upgrading is on track for completion to capture the year-end festive season and the strategic investment taken this quarter in H-REIT will start to make its maiden contribution in the next quarter,” said Mr Christopher Tang, Chief Executive Officer, Frasers Centrepoint Asset Management Ltd., the Manager of Frasers Centrepoint Trust.

¹ Based on an assumed exchange rate of RM1.00 = S$0.4456

Source : SGX

FRASERS CENTREPOINT TRUST (FCT SP: S$1.76): Venturing overseas

FCT buys 27% of Malaysian H-Reit

M’sia is its first overseas market expansion because of its familiarity

FRASERS Centrepoint Trust (FCT) yesterday said it has paid $46.6 million to buy 27 per cent of a Malaysian real estate investment trust (Reit), kick-starting its overseas expansion.FCT is buying 84.6 million units – or 27 per cent – of Hektar Real Estate Investment Trust (H-Reit). H-Reit was listed on Bursa Malaysia in December last year, and is now the only Malaysian-listed Reit investing purely in retail assets, FCT said.

The strategic partnership will also see FCT’s parent company Frasers Centrepoint Limited (FCL) acquire 40 per cent of H-Reit’s manager Hektar Asset Management Sdn Bhd. FCL will gain board and exco representation in the management company.

FCT paid RM1.21 (53 Singapore cents) for each unit in H-Reit, a slight premium to its closing price of RM1.18 yesterday. The trust will start to see contributions from its new purchase in the July-September financial quarter this year, said Christopher Tang, chief executive of FCT’s management team.

H-Reit owns two suburban retail malls with a total net lettable area of 944,500 sq ft in Malaysia at present. The malls – Subang Parade in Selangor and Mahkota Parade in Melaka – house more than 230 major international and domestic retailers and enjoy a combined footfall of more than 279,000 people per week.

‘The Reit gives us a platform to grow further in Malaysia,’ said Mr Tang. ‘We want to use it as a vehicle to acquire more properties.’

FCT has chosen Malaysia as its first overseas market to expand into because of its familiarity, said Mr Tang. In addition, FCT’s parent company FCL has a strong network in the country. Both H-Reit’s sponsor Hektar Group and FCL will work together to rebrand the Reit and the malls in its portfolio. FCT also said there could be possible collaboration between the two parent companies in real estate projects, providing a steady acquisition pipeline for H-Reit.

Mr Tang also said that the FCT is eyeing China’s second-tier cities for future acquisition opportunities as it looks to continue expanding overseas. However, the majority of growth in the near future will come from Singapore, where the Reit has yet to exercise its option to acquire the flagship The Centrepoint.

FCT’s shares closed one cent down at $1.76.