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Frasers Commercial Trust’s (FCOT) gross revenue rose by 3.2 percent to S$40.24 million in the second financial quarter ended 31 March 2017 (Q2 FY17) compared to the same period a year ago, while net property income increased 4.1 percent to S$30.02 million, revealed an SGX filing on Friday (21 April).
The positive results are attributed to the overall better performance of FCOT‘s Australian portfolio coupled with the stronger Australian dollar, but were offset by the lower occupancy rates at China Square Central and Alexandra Technopark.
In the quarter under review, distributable income grew 3.5 percent to S$20.02 million, whereas distribution per unit (DPU) climbed 2.4 percent to 2.51 cents from 2.45 cents in Q2 FY2016, as 40 percent of the manager’s management fees a year ago were paid in units.
As of 31 March 2017, FCOT recorded a portfolio occupancy rate of 91.8 percent. In particular, the occupancy level in Singapore stood at 89 percent, while that in Australia reached 95.3 percent, as 357 Collins Street and Caroline Chisolm Centre remain fully leased.
At the same time, the portfolio’s income-weighted average lease expiry (WALE) came at 3.7 percent.
Meanwhile, the preliminary works for the S$45 million upgrade of the Alexandra Technopark announced last January has already started after the main construction contract was awarded. The revamp is expected to be completed by mid-2018.
“We are excited by the commencement of the asset enhancement works at Alexandra Technopark, which are aimed at providing our tenants with a vibrant, green, enriching and well-balanced environment. These improvements will at the same time greatly boost the marketability and long-term competitiveness of the property for the benefit of FCOT,” said Jack Lam, CEO of FCOT’s manager, Frasers Centrepoint Asset Management (Commercial) Ltd.
FCOT, formerly known as Allco Commercial REIT, was listed on the main board of the Singapore Exchange (SGX) on March 2006. It was renamed in August 2008 after Frasers Centrepoint Limited acquired its manager and units in the trust.
As of 31 March 2017, its portfolio consists of six commercial buildings in Singapore and Australia with a combined appraised value of S$2 billion.
This article was edited by Denise Djong.
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