23 April 2014

Frasers Centrepoint Trust 2Q FY 2014 Result

Frasers Centrepoint Trust (FCT) reported a DPU of 2.88 cents for its 2Q FY 2014, an increase of 6.7% compare to 2Q FY 2013 and is payable on 30 May 2014. Income available for distribution rose 1.4% to $23.8 million, while net property income rose 2% to $29.3 million. Gross revenue rose 2.9% to $41 million, driven by improved revenue from Causeway Point, upon completion of its addition and alteration works. As at 31 March 2014, the company's gearing level was 27.7%. Its weighted
average debt maturity was 23/4 years, with the interest rate of its borrowings averaging 2.72% in 2Q.

FCT's portfolio occupancy has maintained steady at 96.8%, while rental reversions stayed robust at 9.3% for the leases renewed during the quarter. Looking ahead, FCT reiterated that Causeway Point and Northpoint are expected to underpin growth within its existing portfolio, as both malls contribute to the bulk of the lease renewals in FY 2014-2015.

On 8 April 2014, FCT has announced to propose acquisition of Changi City Point for S$305 million. If this acquisition is to go through which I believed is very likely, will boost the DPU of FCT in an otherwise moderating growth portfolio.

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