Frasers Centrepoint Trust has reported a distribution per unit of 6.059 cents for its 2HFY2025 ended Sept 30, up 0.6% y-o-y.
This amount includes the advanced distribution of 0.096 cents per unit already paid on May 30, ahead of the placement of new units to fund the acquisition of Northpoint City South Wing.
The 2HFY2025 payout brings FCT's full-year distribution to 12.113 cents, versus 12.042 cents paid for FY2024.
Net property income for the second half was up 12% y-o-y to $144.3 million, bringing the full year number to $278 million, up 9.7%.
The higher NPI can be attributed to contributions from the $1.17 billion acquisition of Northpoint City South Wing in May, as well as higher rental collected from Tampines 1 following the completion of its AEI last August.
Broad-based improved performance in revenue and NPI across the portfolio helped as well.
In FY2025, FCT divested the Yishun 10 Retail Podium for $34.5 million, as part of its "proactive approach to portfolio reconstitution".
AEI at its Hougang Mall is slated for completion by next Sept and has already secured over 80% leasing pre-commitment.
"Looking ahead, we see further opportunities to enhance our assets through other AEIs and portfolio initiatives," says Richard Ng, CEO of the manager.
See also: First REIT divests hospitality asset for $25.9 million
"Supported by Singapore’s resilient suburban retail sector, FCT’s enlarged retail footprint, disciplined capital management and commitment to sustainability position us to continue delivering stable performance and sustainable long-term value to our unitholders,” he adds.
The REIT's retail portfolio committed occupancy dipped to 98.1% as Cathay Cinema exited the business, vacating its space at Causeway Point and Century Square.
The portfolio registered a healthy rental reversion of +7.8% for FY2025; shopper traffic in FY2025 grew 1.6% y-o-y and tenants’ sales rose 3.7% y-o-y.
FCT says the average occupancy cost for the retail portfolio remains healthy at 16.1%, offering capacity for additional rental growth.
In FY2025, the portfolio increased by 16.2% to $8.2 billion while aggregate leverage lowered to 39.6%.
The REIT's manager expects the retail market to stay well supported by resilient demand, underpinned by population growth, rising household incomes and supportive government schemes.
"FCT’s malls, with their strong focus on essential services offerings, are well-positioned to benefit from this demand. The limited supply of new retail space in Singapore will continue to underpin the sector’s stability and growth," says FCT.
The books will close on Nov 3 and distribution will be paid on Nov 28.
FCT units closed at $2.44 on Oct 22, down 0.41% for the day but up 15.09% year to date.
