SINGAPORE (Jan 23): The manager of Frasers Centrepoint Trust (FCT) has announced distribution per unit (DPU) of 3.0 cents for the 1Q ended December, 3.8% higher than DPU of 2.89 cents in the corresponding quarter a year ago.

Gross revenue grew 8.7% to $47.9 million in 1Q18, from $44.1 million a year ago.

The growth was driven mainly by Northpoint City North Wing, which saw its revenue jump 39.5% on the back of the completion of the asset enhancement initiative (AEI) works and improvement in occupancy at the mall.

Causeway Point and Changi City Point, which registered year-on-year revenue growth of 1.9% and 5.8%, respectively, also contributed to the revenue growth.

Consequently, net property income (NPI) grew 9.1% to $34.5 million in 1Q18, from $31.6 million a year ago.

During 1Q18, 97 leases accounting for 8.8% of FCT’s total net lettable area (NLA) were renewed at an average rental reversion of +1.0%, led by registered average rental reversion of +5.5% at Causeway Point and +2.7% at Changi City Point.

Excluding Bedok Point, which saw negative rental reversion of 31.2% during the quarter, the portfolio rental reversion for 1Q18 was +3.3%.

Portfolio occupancy improved by 1.3 percentage points to 92.6%, with improved occupancy at Northpoint City North Wing following the completion of the AEI.

As at end December, cash and cash equivalents stood at $20.1 million.

“We are pleased that FCT continues to deliver steady performance and a higher DPU for 1Q18,” says Chew Tuan Chiong, CEO of the manager. “We are also excited that the improvement in occupancy at Northpoint City North Wing is in line with our expectations, and its higher revenue contribution will provide an uplift in FCT’s performance for FY2018.”

Despite continuing headwinds and challenges in the retail sector, the manager says FCT’s well-located suburban malls are expected to remain resilient.

Units of FCT closed flat at $2.30 on Tuesday.