Frasers Centrepoint net property income jumps by 11% to $131m

Steady rental income growth led the charge.

Despite heightening headwinds in the retail sector, the property group still managed to boost their earnings by 12.1% to $189.2m, driven by its overachieving portfolio properties.

According to a statement by Frasers Centrepoint, its DPU inched up by 2.7% to 2.859 cents. The full-year contribution from Changi City Point which FCT acquired in June 2014 was also a big factor in the results boost.

“The all-in average cost of borrowings was stable at 2.4% and the weighted-average debt maturity was 1.6 years as at 30 September 2015. Approximately 75% of FCT’s borrowings are on fixed interest rates or have been hedged via interest rate swaps. Net asset value per unit as at 30 September 2015 reached a new-high of $1.91, up 3.2% compared with $1.85 a year ago,” Frasers Centrepoint said.

Meanwhile, overall portfolio occupancy remained steady at 96.0%.

“During 4Q15, 37 leases accounting for 3.9 % of FCT’s total net lettable area were renewed at an average rental reversion of 7.1%. For FY2015, the portfolio average rental reversion was 6.3%,” they added.

“Our portfolio shopper traffic was up 8.2% year-on-year in 4Q15. Both Causeway Point and Northpoint registered double-digit shopper traffic increase and stronger growth than the other four malls during the quarter. Tenants’ sales rose 2.1 % year-on-year for the 3-month period ended August 2015. Causeway Point registered the strongest tenants’ sales growth among all the malls in the portfolio,” Chew Tuan Chiong, FCAM CEO said.