SINGAPORE (Jan 21): The manager of Frasers Centrepoint Trust (FCT) has announced a DPU of 3.02 cents for the 1Q19 ended Dec, up 0.7% year-on-year.

Gross revenue for 1Q19 was up 2.9% year-on-year to $49.3 million and net property income for the quarter was up 2.5% at $35.4 million.

The growth was led by Changi City Point and Northpoint City North Wing on improved gross rental income and higher turnover rent achieved. Causeway Point registered revenue growth of 1.1%.

Overall growth was partially offset by the three smaller malls in the portfolio, which saw year-on-year declines in both revenue and net property income during the quarter, due mainly to lower average rental rates.

During 1Q19, 58 leases accounting for 10.7% of FCT’s total net lettable area (NLA) were renewed at an average rental reversion of +6.9%.

The portfolio occupancy as at Dec 31 2018 was 96.4%, higher than the 92.6% registered in the same quarter in the previous year. Occupancy at Anchorpoint improved to 95.0% from 88.8% in the previous quarter following the commencement of the lease of a tenant which occupies about 6% of the mall’s NLA.

1Q19 portfolio shopper traffic, excluding Northpoint City North Wing, was up 3.5% year-on-year. All malls except Bedok Point, saw higher shopper traffic during quarter.

Shopper Traffic at Northpoint City was up 64.9% year-on-year following the progressive increase in occupancy at Northpoint City North Wing and the opening of the South Wing.

The portfolio tenants’ sales for September to November 2018 declined slightly by 0.9% year-on-year.

Unitholders can expect to receive their 1Q19 DPU on Feb 28. The ex-date is Jan 28 and the books closure date is Jan 29.

Despite the continuing challenges in the retail sector, suburban malls, which make up FCT’s portfolio, Frasers Centrepoint Asset Management expects to see relatively stable performance.

As at Monday close, units in FCT are down 4 cents to $2.26 from $2.30 on Jan 22 2018.