Frasers Centrepoint Trust’s profits inch up 0.4% to $33.7m in Q2

Thanks to lower tariffs, write-back of property tax provision.

Frasers Centrepoint Trust (FCT)’s net property income edged up 0.4% to $33.7m in 2QFY16, thanks to reduced utility tariff rates and write-back of provision for property tax as a result of resolved property tax appeals and objections.

According to a report by OCBC, DPU picked inched up 2.6% to 3.069 S cents although management had retained $1.1m of taxable income available for distribution in 2QFY16. Gross revenue for the quarter dipped 0.8% YoY to $47.1m.

For the first half of FY16, FCT’s DPU of 5.909 S cents represented growth of 3.4%. FCT’s gross revenue slipped slightly by 0.5% YoY to $94.2m.

FCT delivered average positive rental reversions of 5.6% in Q2. FCT enjoyed strong growth in this respect, led by Changi City Point and Causeway Point, though partially offset by Bedok Point.

Shopper traffic jumped 11.4% YoY to 25.9m, while tenants’ sales inched up 2.1%.

Meanwhile, portfolio occupancy fell from 94.5% as at end Dec 2015 to 92%. This is due largely to the commencement of asset enhancement initiatives (AEI) at Northpoint (NP) in March.

FCT management provided further updates, emphasizing that capex for the AEI is budgeted at $60m and this would be funded by borrowings and internal resources.