SINGAPORE (Oct 21): The manager of Frasers Centrepoint Trust (FCT) has declared a distribution per unit (DPU) of 2.815 cents for the 4Q16 ended Sept, 1.5% lower than a year ago.

This brings the total DPU for FY2016 to 11.764 cents, which is 1.3% higher than the previous year.

Gross revenue for 4Q16 was $44.6 million, which is 6% lower compared with the year-ago period. Revenue contribution from the Causeway Point, FCT’s largest mall, was up 3.2% in 4Q16.

However, Northpoint and Changi City Point contributed lower revenues due to asset enhancement initiative (AEI) works at Northpoint and vacancy due to changeover in an anchor tenant at Changi City Point.

Full year revenue was 2.9% lower on-year at $183.8 million.

Net property income for 4Q16 declined slightly by 0.9% to $31.4 million compared with the previous year.

Property expenses were lower across all the malls in 4Q16 and in FY16 due mainly to lower utilities tariff rates and other property expenses.

Net property income for the year declined 0.9% to $129.8 million.

4Q gearing level of FCT stood at a healthy 28.3% with weighted average debt maturity at 2.7 years.

During 4Q16, 37 leases accounting for 2.6% of FCT’s total net lettable area were renewed at an average rental reversion of 4.6%.

Portfolio occupancy as at Sept 30 declined to 89.4% from 90.8% in the prior quarter.

As at Sept 30, the aggregate value of the portfolio properties was $2.5 billion, which is 1.8% higher compared to a year ago.

In line with the weaker economic growth outlook, the retail sector continues to face headwinds and challenges ahead, said FCT’s manager.

Shares of FCT closed 1 cent higher at $2.16.