FCT posts 48.7% drop in Q2 DPU on enlarged base, retained earnings

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FRASERS Centrepoint Trust (FCT) on Thursday posted a second-quarter distribution per unit (DPU) of 1.61 Singapore cents, down 48.7 per cent from 3.137 cents a year ago. Read more at The Business Times.

Gross revenue rose 0.9 per cent to S$50.2 million, from S$49.7 million on gross rent increase from renewals and step up rents from existing leases.

Net property income came in at S$36 million, down 1.3 per cent from S$36.4 million a year ago, as growth in property expense outpaced revenue growth during the quarter, the manager noted. As at March 31, FCT's gearing level stood at 37.4 per cent. The increase in the gearing from last quarter was due mainly to the drawdown of S$80 million from its revolving credit facility on March 27, to repay a S$90 million medium-term note due on April 3. Post repayment, FCT's gearing is 33.3 per cent.

"We will continue to monitor the Covid-19 situation and take appropriate measures to help FCT navigate through this difficult period." The manager added that the detriment from Covid-19, regulatory measures imposed during the"circuit-breaker" period and provisions for rental rebates will have a"significant impact" on FCT's revenue, income available for distribution and cash flow for the remainder of financial year 2020.

 

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