Frasers Commercial Trust posts flat 2Q DPU of 2.4 cents

Samantha Chiew

SINGAPORE (Apr 23): The manager of Frasers Commercial Trust (FCOT) has announced a 2Q19 DPU of at 2.40 cents, unchanged from 2Q18.

The distribution also brings 1H19 DPU to 4.80 cents, unchanged from a year ago.

FCOT’s portfolio as at Mar 31, 2019, consists of six properties – China Square Central and Alexandra Technopark in Singapore; 50% indirect interest in Central Park, 100% indirect interest in Caroline Chisholm Centre and 100% indirect interest in 357 Collins Street in Australia; as well as 50% indirect interest in Famborough Business Park in UK.

During the quarter, distribution income for unitholders increased by 5% to $21.7 million from $20.6 million in the previous year.

Gross revenue declined by 8% to $30.4 million from $33.0 million last year.

This was mainly due to lower contribution from Alexandra Technopark, Caroline Chisholm Centre and 357 Collins Street, the weakening AUD, as well as the divestment of 55 Market Street. The decrease was partially offset by a one-off income received from a tenant at 357 Collins Street in relation to termination of lease and lower property maintenance expenses and utilities incurred for the Singapore properties.

Net property income was 10% lower at $20.1 million, compared to $22.4 million a year ago.

Share of results of joint venture, which relates to the trust’s 50% interest in Famborough Business Park, came in at $1.6 million, 18% higher than $1.3 million a year ago.

The trust recorded foreign exchange gain of $0.7 million for 2Q19, compared to a loss of $1.5 million in the previous year.

As at Mar 31, FCOT’s cash and cash equivalents stood at $24.0 million.

Looking forward, the manager proactively plans and executes asset enhancement initiatives (AEI) when opportunities arise.

Currently, China Square Central is undergoing a $38 million AEI to rejuvenate and reposition the retail podium at 18 Cross Street. This is expected to be completed in 2H19.

FCOT also has plans to undergo an AEI at Central Park. Estimated to cost $23 million, the AEI is expected to commence in 2Q19 and complete in 3Q20.

Units in FCOT last traded at $1.47 on Monday.