Frasers Centrepoint Trust has reported better-than-expected full-year earnings. In its first set of annual results since its listing in July last year, Frasers turned in a distributable income of S$40.3 million.
This is 11 percent higher than its own forecast.
With defined growth projects in place, Frasers Centrepoint is painting a positive outlook.
Sales in its last fiscal year grew to almost S$77.5 million, while net property income climbed by 3 percent to some S$51.7 million.
New and renewed leases for the company recorded an increase of over 12 percent above preceding rates.
Frasers said it is eyeing more growth through asset enhancement initiatives.
Christopher Tang, Chief Executive Officer, Frasers Centrepoint Asset Management, said, "For example, in the last 12 months we have put together a pipeline of three additional assets - the extension of the Northpoint, Yew Tee Point as well as Bedok Mall. And all this will form part of the acquisition of the REIT over the next 12 to 24 months."
Fraser's first asset enhancement initiative is the rebranding of Anchorpoint Mall - expected to be fully functional by Christmas.
Rental rates for the mall is forecast to jump by about 36 percent to S$7.20 per square foot from the current S$5.32.
Frasers is also improving the Northpoint mall in Yishun with a S$30 million project which will commence on the first quarter of 2008.
This will increase the mall's lettable area to about 232,000 square feet.
Apart from urban malls, Frasers said it may consider opportunities outside main city areas, especially in its overseas operations.
Mr Tang said, "For developer-sponsored REIT, like ourselves, we can widen our acquisition pipeline beyond just operating malls. We can go into areas like brownfield malls, greenfield malls, put them into a pipeline using the balance sheet of the developer to grow it to the point where it's mature. And then at that point in time have it injected into the REIT.
"So as a total strategy, we have greater access to a pipeline; we also have greater access over a wider geographical area through our current presence in many markets including Malaysia, China, Australia."
In May of this year, Fraser Centrepoint took a 27 percent stake in a Malaysian REIT called Hektar, making the company the second largest unit holder of Malaysia's only pure retail REIT. - CNA/ms
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