Schedule of S-Reits earnings or business update

*CapitaLand India Trust is a property trust.
SOURCE: COMPANY ANNOUNCEMENTS AS AT JAN 18, 2024

Twenty-six, or more than half, of Singapore real estate investment trusts (S-Reits) have confirmed that they will unveil financial results or business updates starting this week for their respective periods ended Dec 31, 2023. Among them, 17 S-Reits will be reporting full-year financial results, five will be reporting first-half or third-quarter financial results, and another four will be providing quarterly business updates.

Frasers Centrepoint Trust (FCT) will kick off the current financial reporting season for S-Reits with the release of its first quarter (ended Dec 31, 2023) business update after the close of trading on Jan 22, 2024. FCT owns four of Singapore’s top 10 largest prime suburban malls (by net lettable area).

In its earlier financial reporting season for full year ended Sep 30, 2023, FCT reported record-high gross revenue and net property income (NPI) of $369.7 million and $265.6 million, growing by 3.6 per cent and 2.7 per cent respectively. 

The main drivers were higher rental income from higher occupancy, new and renewed leases, step-up rents, and atrium leasing. However, higher operating expenses, especially maintenance, utility and staff costs, offset the NPI growth.

Distribution to unitholders was $207.7 million, a slight decrease of 0.2 per cent, due to higher interest expense from higher interest rates and loans for Nex and Waterway Point acquisitions. Distribution per unit (DPU) was 12.150 cents, slightly lower than 12.227 cents in FY2022.

During its financial year, FCT made five key announcements, which were the acquisition of 25.5 per cent effective interest in Nex; the acquisition of additional 10 per cent interest in Waterway Point; the asset enhancement initiatives at Tampines 1; the divestment of Changi City Point; and the divestment of FCT’s interest in Hektar Reit.

FCT’s aggregated leverage is expected to decline from 39.3 to 36.1 per cent on a pro forma basis upon the completion of both divestments. Among Singapore’s 10 largest trusts of the S-Reit sector by market value, FCT saw the strongest unit price performance over the past 12 months with a 10.2 per cent increase in unit price.

S-Reits continue to draw investors’ attention with the hunt for yield. Till early January 2024, the benchmark iEdge S-Reit Index maintained an indicative dividend yield of 5.6 per cent, as compared to 4.2 per cent for the FTSE EPRA/Nareit Developed Index.

Over the past 12 months, the iEdge S-Reit Index generated a 3.1 per cent decline with dividends boosting the total return to 3 per cent. At the same time, the FTSE EPRA/Nareit Developed Index gained 2.8 per cent, with a 7.3 per cent total return.

Source: SGX Research S-Reits & Property Trusts Chartbook.

REIT Watch is a weekly column on The Business Times, read the original version.

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