Frasers Centrepoint Trust posts 20.4% YoY NPI drop for FY2020

DPU fell 25.1% YoY to 9.042 cents for the same period.

Frasers Centrepoint Trust (FCT) recorded a 20.4% YoY fall in net property income (NPI) to $110.89m for FY2020, with income also falling 14.8% YoY to $101.15m for the same period.

Its distribution per unit (DPU) plunged 25.1% YoY to 9.042 cents for FY2020. For H2 2020, DPU fell 26.1% YoY to 4.372 cents.

Financial performance during the financial year was marred mainly by rental rebates dispensed during H2 to help tenants cope with the challenges brought about by the pandemic. Excluding the impact from rental relief, FY2020 revenue and net property income (NPI) would have dipped 2.4% and 0.7% YoY, respectively.

H2 revenue declined 33.8% YoY to $64.46m whilst net property income was down 42.8% YoY to $38.61m. This, in turn led to a 16.3% YoY decline in full year revenue to $164.38m.

FCT’s financial position remains healthy with a gearing level of 35.9% as of end-September. The all-in average cost of borrowing was 2.4%, compared with 2.6% in the previous year, due to the general decline in interest rates.

Portfolio total tenants’ sales has recovered to near pre-COVID-19 level and shopper traffic stabilised at 60% to 70% pre-COVID. The total appraised value of the portfolio of investment properties as of end-September stood at $2.857b, compared with $2.846b a year ago.