SINGAPORE (Feb 19): Frasers Centrepoint Trust is fortunate in that its two biggest suburban malls are in areas where there is little or no competition and its portfolio continues to notch up higher rents and net property incomes. Altogether, FCT owns six malls on the island.

“Causeway Point continued to contribute the highest positive rental reversions at 5.5%, for 23 leases renewed for 7% of NLA [net lettable area],” says Chew Tuan Chiong, CEO of FCT’s manager. “Causeway Point will continue be a strong performer.” The mall is the REIT's second-largest mall in Woodlands in northern Singapore. Chew expects Northpoint City North Wing’s occupancy and rents to rebound after its asset enhancement initiative. “Overall, we are much happier than this time last year.”

For 1QFY2018 ended Dec 31, FCT’s distribution per unit was three cents, up 3.8% y-o-y. This was the result of gross revenue rising 8.7% y-o-y and net property income increasing 9.1%. DPU was also enhanced because the proportion of management fee to be paid in units was 50% for 1QFY2018. A year ago, 70% of management fee was paid in units. This will be progressively decreased as Northpoint — which had undergone AEI — starts trading again on full occupancies.

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