Frasers Centrepoint Trust Reports 1.8% Decrease in H1 Distribution Per Unit

Frasers Centrepoint Trust (FCT) disclosed a 1.8% decline in distribution per unit (DPU) for the first half ended March 31, registering S$0.06022 compared to S$0.0613 in the prior year.

The drop in DPU was attributed to decreased contributions from Changi City Point, divested in October 2023, and Tampines 1, undergoing asset enhancement initiative (AEI).

Gross revenue for the period dipped 7.2% to S$172.2 million, with net property income (NPI) falling 8.4% to S$124.6 million. Excluding effects from divestment and AEI, both gross revenue and NPI would have seen positive growth.

The DPU included an advanced distribution of S$0.0425 paid on April 2, 2024, with the balance of S$0.01772 scheduled for May 30, 2024.

Distributions to unitholders increased marginally by 0.2% to S$104.9 million. FCT released S$1.1 million of tax-exempt income available for distribution in H1 2024.

The REIT's gearing ratio rose slightly to 38.5% as of March 31, 2024, with no borrowings maturing for the remainder of FY2024.

Committed occupancy remained steady at 99.9%, with rental reversions averaging 7.5% excluding Tampines 1 due to ongoing AEI works.

CEO Richard Ng highlighted progress on AEI works at Tampines 1, with commitments from new tenants such as Lenskart Studio and Mister Donut, and plans for AEI in other malls under review.