Frasers Commercial Trust reports 1Q DPU of 2.51 Singapore cents; announces AEI for Alexandra Technopark

SINGAPORE (Jan 23): Frasers Commercial Trust (FCOT) has declared a distribution per unit (DPU) of 2.51 Singapore cents for the 1Q2017, unchanged from a year ago. On a full year basis, the REIT reported a 0.2% dip in DPU to 9.94 Singapore cents.

Net property income declined 1% from a year ago to S$29.2 million, mainly due to lower occupancy rates for China Square Central and Central Park and higher marketing costs incurred for Central Park. But this was offset by higher income contribution from 357 Collins Street due to higher occupancy rate and higher rental rates, and a stronger Australian dollar in the quarter.

Gross Revenue for the quarter rose 0.1% to S$39.7 million.

As at end December 2016, the average portfolio occupancy rate stood at 93.0%. The average occupancy rates of the properties in Singapore and Australia were 92.3% and 93.8%, respectively.

The income-weighted average lease expiry of the portfolio was 3.8 years as end December 2016.

Alexandra Technopark achieved a positive weighted average rental reversion of 8.5% for four new and renewed leases totalling16,700 square feet that commenced in 1QFY2017.

In a separate filing, the manager has announced an asset enhancement initiative for the park costing S$45 million (RM140.6 million).

Gearing level of FCOT stood at 36.0% and the weighted average debt maturity was 2.3 years.

Construction works for the development of a hotel and commercial Project at China Square Central are on track for completion by mid-2019; the hotel will be operated by Frasers Hospitality under the ‘Capri by Fraser’ brand.

Jack Lam, CEO of the Manager, notes that market conditions will remain challenging in the near term but says that the Manager will look to enhance the defensiveness and income stability of the Trust for unit-holders.

Units of FCOT closed 0.5 Singapore cent lower at S$1.28. — theedgemarkets.com.sg