Frasers Centrepoint 3Q10 net property income up 46%

Eyes further growth as $72mln rejuvenation and enhancement of Causeway Point has started.

Frasers Centrepoint Asset Management Ltd., the manager of Frasers Centrepoint Trust (“FCT”), announced record 3Q10 (1 April to 30 June 2010 period) income available for distribution of $16.3 million, which represents an increase of 35% from the same period last year.

FCT’s 3Q10 gross revenue grew 45% y-on-y to $30.7 million, aided by contributions from Northpoint and YewTee Point, and a strong recovery in Northpoint’s performance post completion of enhancement works. Net property income similarly grew 46% y-on-y to $21.5 million. FCT’s 3Q10 distribution per unit rose 7% y-on-y to 2.07¢, with $0.4 million of 3Q10 income being retained for distribution in the fourth quarter of FY2010.

FCT maintained strong operational momentum with portfolio occupancy of 99% as at 30 June 2010. FCT recorded positive rental renewals during the quarter, with expiring leases renewed at 9% increment above preceding rental rates. Occupancy costs in FCT’s malls remain healthy, with tenants registering average occupancy costs below 14%, as the malls continue to generate strong traffic and business for its tenants.

FCT recently commenced the enhancement of Causeway Point. Costing $72 million, the enhancement works will rejuvenate Causeway Point with new retail offers and pro-family features to better serve the 300,000 residents living within its trade catchment. The enhancement programme is expected to span 30 months, and through more efficient allocation of leasable space, net property income is targeted to increase 22% to S$51.5 million. The enhancement programme is estimated to deliver a return on investment of 13% based on the incremental net property income.

Chief Executive Officer of the Manager of FCT, Dr Chew Tuan Chiong said, “The excellent set of 3Q10 results was supported by contributions from Northpoint 2 & YewTee Point, and improved performances from the other properties. To build upon the strong foundations of FCT’s portfolio, we have embarked on the revamp of our biggest asset Causeway Point. Our previous experience revamping Anchorpoint and Northpoint has proven to be greatly beneficial in increasing Unitholder returns, and we are confident that Causeway Point’s enhancement will similarly lead to greater income sustainability and provide further organic growth in years to come.”