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Higher rental incomes from China Square Central and Central Park, as well as lower maintenance expenses for Alexandra Technopark, are among the reasons for an increase in net property income.
Frasers Commercial Trust saw its distribution per unit (DPU) for the fourth quarter ended 30 September remain unchanged from the previous quarter and from the previous year at 2.4 Singapore cents.
Gross revenue rose 8.9 percent quarter-on-quarter and 1.3 percent year-on-year to $32.9 million, while net property income climbed 10 percent quarter-on-quarter and 0.5 percent year-on-year to $21.7 million.
The trust’s manager attributed the increase in net property income to “higher rental incomes from China Square Central and Central Park; higher accounting income on a straight-line basis over the term of leases recognised for Alexandra Technopark; lower property maintenance expenses for Caroline Chisholm Centre and the Singapore properties; and lower utilities for Alexandra Technopark”.
“The increase was partially offset by higher amortisation of leasing incentives for Central Park and 357 Collins Street, higher property tax for Alexandra Technopark, 6.1 percent decline in the average Australia Dollar to Singapore Dollar exchange rate for Q4 FY2019 as compared to 4Q FY2018 and the disposal of 55 Market Street being completed on 31 August 2018,” it added.
With this, total income available for distribution to unitholders inched up by 0.6 percent quarter-on-quarter and 2.3 percent year-on-year to $21.9 million.
For the full year ended 30 September, DPU also held flat at 9.6 Singapore cents from last year, while income available for distribution rose five percent to $86.9 million. Gross revenue and net property income, on the other hand, fell 6.2 percent and 7.4 percent to $125 million and $82.7 million, respectively.
Looking ahead, the manager expects Alexandra Technopark to “benefit from the urban transformation and rejuvenation of the Greater Southern Waterfront, on the back of the government’s plans to revitalise this precinct into a place integrating ‘work, live and play’”.
The revamped retail podium at China Square Central is also set to commence operation in phases from November, featuring a refreshed tenant mix as well as new shopper amenities. Almost 80 percent of the space within the retail podium has already been pre-committed, while another 10 percent is under active negotiations.
Victor Kang, Digital Content Specialist at PropertyGuru, edited this story. To contact him about this or other stories, email victorkang@propertyguru.com.sg
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