FCT's NPI down 1.3% to $35.96m in Q2

Growth in property expense outpaced revenue growth during the quarter.

Frasers Centrepoint Trust (FCT) saw its net property income (NPI) dip 1.3% YoY to $35.96m in Q2 from $36.44m in 2019, an announcement revealed. Gross revenue over the same period inched up 0.9% YoY to $50.2m from $49.73m.

Its NPI fell as the growth in property expense outpaced revenue growth during the quarter. Gross revenue rose on the back of higher gross rents from renewals and existing leases. Distribution per unit (DPU) is at 1.61 cents in Q2, which plunged 48.7% YoY due to enlarged unitholders base and higher amount of distributable income retained during the period.

Income available for distribution jumped 25% YoY to $36m, due mainly to contributions from FCT’s 24.8% interest in PGIM ARF and 40% interest in SST. The distribution from PGIM ARF was $6m, whilst SST contributed $3.8m. In light of the COVID-19 pandemic, FCT mentioned that they adopted an approach to retain around 50% of the income available for distribution this quarter, to bring the distribution to unitholders to $18m.

Also read: Fraser Group tightens grip on PGIM Asia Retail Fund

In addition, FCT’s gearing level stood at 37.4% as at 31 March, attributed to the drawdown of $80m from its revolving credit facility on 27 March to repay a $90m medium term note (MTN) due on 3 April.

The trust’s YTD average portfolio rental reversion stood at 5.2%. Its portfolio occupancy as of end-March was 96.1%, more stable compared with 96% in Q2 2019. Overall portfolio shopper traffic slipped 2.4% YoY in Q2. Tenants’ sales at larger malls saw a decline between 2% and 10% YoY, whilst smaller malls saw mixed variances.