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Frasers Centrepoint Trust more than doubles revenue, asset size

Frasers Centrepoint Trust (FCT) has more than doubled its revenue and asset size since its initial public offering (IPO) in July 2006.

SINGAPORE: Frasers Centrepoint Trust (FCT) has more than doubled its revenue and asset size since its initial public offering (IPO) in July 2006.

In the last eight years, the trust has been able to grow its distribution per unit at an average of 9 per cent per year.

FCT said asset enhancement is its biggest engine for growth.

For instance, it said the asset enhancement on malls like Causeway Point and Northpoint have garnered about a 30 per cent increase in net property income.

Currently, FCT's portfolio comprises six suburban malls in Singapore.

It will continue to look for acquisition opportunities both outside and within the portfolio of its sponsor Frasers Centrepoint.

Going forward, FCT said it remains positive about retail rental outlook, even though it has had to cut rent rates at Bedok Point due to competition from the new Bedok Mall.

Dr Chew Tuan Chiong, CEO of Frasers Centrepoint Asset Management, said: "Bedok Point is one of the rare cases where there is a new competition there. Contrary to what the market might be saying about REITs increasing rentals, in Bedok Point we actually lowered rentals.

“Rentals for suburban malls, if we look at our own portfolio, continues to be positive. The reversions continue to be positive -- we have been experiencing anywhere between 7 per cent increase in rental, renewals to even double digit, but going forward, my own sense is this is going to be more subdued, partly due to the shortage of manpower which curtained the expansion plans of some tenants, partly due to increase in supply.

“But because the suburban malls have very strong fundamentals feeding off growing population, increasing income levels, median income -- I see, probably, still positive reversions but not as exuberant as in the past.” 

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