SINGAPORE (July 22): The manager of Frasers Commercial Trust (FCOT) has announced a Distribution per Unit (DPU) of 2.40 cents for the 3Q19 ended ended June 30, unchanged from 3Q18.
As at June 30, FCOT’s portfolio includes six commercial buildings located in Singapore, Australia and the United Kingdom, representing a combined appraised value of approximately $2.1 billion.
Gross revenue for 3Q19 of $30.2 million was 7% lower compared to a year ago, mainly due to lower occupancy rate for Alexandra Technopark, divestment of 55 Market Street on Aug 31 2018 and effects of the average weaker Australia Dollar, partially offset by higher rent revenue for China Square Central.
Net Property Income (NPI) decreased 3% to $19.8 million, mainly due to the lower gross revenue, higher property tax expense for Alexandra Technopark and higher amortisation of lease incentives for Central Park and 357 Collins Street, partially offset by lower maintenance expenses for the Singapore properties and Caroline Chisholm Centre and lower utilities expense for Alexandra Technopark.
Correspondingly, distribution to unitholders of $21.8 million for 3Q19 was slightly higher than distribution of $21.2 million for 3Q18.
As at June 30, the portfolio average committed occupancy rate was 94.1%, a 12.6ppt improvement from 81.5% at the end of the previous quarter.
As at June 30, FCOT’s gearing was 29.3%, one of the lowest among S-REITS currently. The weighted average term to maturity of FCOT’s borrowings was 2.4 years, with no more than $210 million due in any one financial year.
In its outlook statement, Frasers Commercial Asset Management (FCOAM) says the ongoing $38 million asset enhancement initiative at China Square Central to rejuvenate and reposition the retail podium at 18 Cross Street is on track for completion in the second half of 2019.
At Central Park in Perth, asset enhancement works to the lobby and forecourt areas started during the quarter and is currently expected to be completed in 3Q20.
Units in FCOT closed 1 cent lower at $1.64.