Frasers Centrepoint Trust’s net property income dips by 5.1% to $31.2m

Blame it on a soft 90.8% occupancy.

While rental reversions remain the commercial property firm’s strength, softer occupancy rates caused its earnings to fall by 4.4% to $45m.

According to a report by OCBC, lower contributions from Northpoint (NP) which is currently undergoing an asset enhancement initiative, dealt the blow to the earnings.

Distribution per unit was also flat at 3.04 S cents as S$2.1m of taxable income available for distribution which was retained in 1HFY16 was paid out during the quarter, the report noted.

Meanwhile, the firm delivered average positive rental reversions of 8.3% during the quarter, with strong growth led by NP (+10.3%), Causeway Point (+9.4%) and Changi City Point (+9.3%), but partially offset by Bedok Point (-0.3%).

“However, shopper traffic declined marginally by 0.4% YoY to 24.5m, while tenants’ sales slipped 1.8% for the period from Mar to May 2016. Portfolio occupancy was also lower from 92.0% as at end Mar 2016 to 90.8% due largely to the AEI at NP and Changi City Point,” the report said.