Published October 24, 2008

Frasers Centrepoint Trust's Q4 DPU up 23%

Strong performance by Causeway Point and Anchorpoint

	Email this article
	Print article
	Feedback

FRASERS Centrepoint Trust (FCT) has announced distribution per unit (DPU) of 2.05 cents for its fourth quarter ended Sept 30, a 23 per cent increase from Q4 last year, manager Frasers Centrepoint Asset Management (FCAM) said yesterday.

Asset enhancement in progress: Northpoint is set to provide a substantial boost to FCT's income from the second half of FY2009 onwards

Full-year 2008 DPU rose 11 per cent to 7.29 cents.

FCAM chief executive Christopher Tang said Q4 capped a successful year for FCT - 'another consecutive year of sustained growth'.

A strong performance by Causeway Point and the reinvigorated Anchorpoint continued to drive gross revenue and net property income growth, according to FCT.

Q4 gross revenue grew 11 per cent to $22.1 million, while net property income increased 10 per cent to $14.1 million. FY2008 gross revenue and net property income were both up 9 per cent to $84.7 million and $56.6 million respectively.

Q4 leases at Causeway Point were renewed at 15 per cent above preceding rates, reflecting strong demand and tight supply situation in the suburban retail sector.

Anchorpoint's Q4 2008 gross revenue more than tripled to $2.4 million from the year earlier. Rents increased more than 40 per cent as the mall reverted to full occupancy after the completion of enhancement work.

Overall portfolio occupancy declined to 87.7 per cent at Sept 30 from 94.6 per cent a year earlier, as a result of planned vacancies associated with enhancement work at Northpoint.

FCT said it has a conservative gearing level of 28.1 per cent and faces no refinancing pressure, It has no material refinancing and interest rate risks as its term loan amounting to $260 million only expires in July 2011, and its associated interest rate is fully hedged.

Asset enhancement works at Northpoint are on schedule for completion by June next year, the trust said. Rents at Northpoint are projected to increase 20 per cent to $13.20 per sq ft per month, translating to a 30 per cent increase in net property income to $18 million.

With close to 90 per cent of its post-enhancement net lettable area already committed, Northpoint is set to provide a substantial boost to FCT's income from the second half of FY2009 onwards.