SINGAPORE (Oct 24): The manager of Frasers Centrepoint Trust (FCT) reported a DPU of 2.862 cents for 4Q18, 3.6% lower compared to the DPU of 2.970 cents in 4Q17.

This brings FY18 to a new high of 12.015 cents, 1.0% higher than 11.90 cents in FY17.

Distribution to unitholders in 4Q18 dropped by 3.4% to $26.5 million from $27.5 million a year ago.

During the quarter, gross revenue was 0.5% higher at $48.5 million, compared to $46.2 million last year.

Northpoint City North Wing was the key growth driver, its revenue and net property income, excluding Yishun 10 retail podium, grew 26.5% and 35.1% y-o-y, respectively, from higher average rental and improved occupancy following the completion of the asset enhancement initiative (AEI) works last year.

Meanwhile, Causeway Point and Changi City Point, also achieved higher revenue for the year, with 2.3% and 5.0% y-o-y growth revenue, respectively.

Property expenses was 14.4% higher y-o-y at $15.6 million, mainly due to higher property tax for Northpoint City North Wing, higher professional fees and more ad-hoc repair and replacement works carried out in the current quarter. It is partially offset by lower marketing expenses.

This brings net property income for 4Q18 to $32.9 million, 4.9% lower than $34.6 million a year ago.

The portfolio occupancy rate of the trust’s properties was 94.7% in 4Q18, slightly higher than 94.0% last quarter.

As at end-Sept, the group’s cash and cash equivalents stood at $21.9 million.

The 4Q18 DPU will be payable on Nov 29.

Chew Tuan Chiong, CEO of Frasers Centrepoint Asset Management says, “Going forward, we remain focused on continuous improvement in the financial performance of FCT as well as on acquisition strategies to drive further growth.”

Units in FCT last traded at $2.22 on Tuesday.