- Full rental contributions from completed AEIs at JCube, Bugis+ and Atrium@Orchard are starting to come in.
- Positive rental reversions of 6.4% were achieved for new and renewed leases.
- Overall occupancy rate remains high at 99.1%. An improvement from 98.3% in 1Q2013.
- Quarterly DPU has increased 6.3% year-on-year.
- Gearing ratio is still reasonable at 34.9%. No refinancing needs this year. All 14 properties held by CMT are now unencumbered, giving CMT greater financial capacity and flexibility.
|Source: Photo taken from skyscrapercity.com|
- West Gate Mall is expected to be completed on schedule and within budget by December 2013. So far, 70% of the space has been leased.
- To prevent cannibalizing of sales between shopping malls in the Jurong Gateway area, JCube is differentiating itself as a sports and entertainment mall. IMM is expected to increase its number of outlet stores in the coming quarters as it continues its repositioning exercise. IMM aims to become a centre for 'outlet shopping'.
- There are fears that the shopping scene at Jurong East is saturated and initial sales may be weak.
Frasers CentrePoint Trust - Forging Ahead!
- Quarterly DPU hits a record high, with an increase of 9.6% year-on-year. This is mainly due to strong rental growth at Causeway Point and North Point. Positive rental reversions of 9.4% were achieved on renewed leases. North Point also received higher carpark income.
- High occupancy rate improved marginally from 98.2% to 98.4% quarter-on-quarter.
- Gearing ratio remains healthy at 30.4%. No refinancing needs this year. Average cost of borrowing is 2.72% (even lower than CMT's). Better still, 94% of FCT's borrowings are on fixed interest rates. Therefore, FCT is not very vulnerable to a gradual interest rate hike.
- The successful AEIs of Causeway Point and North Point, combined with the ability to negotiate higher rental rates from tenants, shows the strong execution of FCT's management.
- However, Bedok Mall (slated to open by December 2013) will present stiff competition to Bedok Point.