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FRASERS Centrepoint Trust (FCT) yesterday reported a 1.1 per cent year-on-year dip in distributable income for its third fiscal quarter, to $12.1 million.
But distribution per unit rose 3 per cent to 1.94 cents, from 1.88 cents a year earlier when the trust retained 5 per cent of distributable income.
In the three months ended June 30, gross revenue rose 1.8 per cent to $21.2 million, and tight cost control led to a 4.4 per cent rise in net property income to $14.7 million, said the Reit's manager, Frasers Centrepoint Asset Management.
The revenue increase was despite disruption to income at Northpoint due to upgrading works, which are expected to cut Northpoint's full-year net property income 30 per cent.
Construction work has been completed and occupancy at Northpoint improved to 75 per cent by June 30. The mall's net property income rose 35 per cent from Q2 to $3.4 million.
The occupancy rate of FCT's properties on June 30 was 93.2 per cent, down slightly from 93.4 per cent on March 31.
Rents for renewal and replacement leases increased 14.2 per cent on average in Q3. Property expenses fell 3.8 per cent to $6.5 million, due to lower maintenance and other expenses.
With a gearing level of 32.7 per cent, FCT's manager said the Reit faces no material refinancing and interest rate risks. On June 18, FCT issued $75 million of three-year fixed-rate notes, the bulk of which will be used to repay short-term debt. Upon refinancing, FCT's gearing is expected to remain below 30 per cent. 97 per cent of its total borrowings will bear fixed interest rates and will not mature before July 2011.
FCT's unit price rose two cents to close at $1 yesterday.
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