Frasers Centrepoint Trust (FCT) has announced that its distribution income in the third quarter increased 35 percent to $16.3 million from a year ago.
Chew Tuan Chiong, CEO of FCT, also said distribution per unit (DPU) rose seven percent from last year’s 1.94 cents to 2.07 cents in Q3.
FCT’s gross revenue also increased to $30.7 million or 45 percent year-on-year in the third quarter, which was largely attributed to the acquisition of two properties, YewTee Point and Northpoint 2, as well as Northpoint’s strong recovery following enhancement works.
The occupancy rate for the company’s five holdings, which include Causeway Point, Anchorpoint, Northpoint, YewTee Point and Northpoint 2, remain strong at 99.4 percent. It also saw positive rental renewals in the quarter, with 98 percent of gross rental income secured for the whole year.
The strong Q3 results add to the company’s record nine-month performance. Distribution income also increased 27 percent to $44.3 million in Q3, with DPU increasing 10 percent to 6.04 cents.
Mr. Chew also said the company has allocated $72 million for asset enhancement of its Causeway Point shopping mall at Woodlands. The 30-month redevelopment programme, when completed, will feature family-friendly amenities like nursing rooms and a play area.
“Our previous experience revamping Anchorpoint and Northpoint has taught us that asset enhancement is a viable thrust we can use to improve portfolio value and increase unitholder returns,” he said. “We are confident that Causeway Point’s enhancement will similarly lead to greater income sustainability and provide further organic growth in years to come.”