Distributable income rises 20% at Frasers Commercial Trust

SINGAPORE - Improved performance at two properties and contribution from a third acquired last August bolstered second quarter earnings at Frasers Commercial Trust (FCOT).

The trust posted a 19.5 per cent year on year rise in distributable income to S$19.35 million for the three months to March 31.

Distribution per unit rose 2.9 per cent to 2.45 Singapore cents and will be paid on May 30.

"The good performance of the Trust was bolstered by Alexandra Technopark and Caroline Chisholm Centre (in Canberra) and the contribution from 357 Collins Street (in Melbourne) , which was acquired in August 2015 and has a full occupancy rate," said Mr Low Chee Wah, chief executive officer of the trust's manager.

"This yield accretive acquisition will provide stability to the Trust and strengthen the distributions in the longer term."

Gross revenue rose 12 per cent to S$38.99 million while net property income rose 16.7 per cent to S$28.84 million.

Average occupancy rate across its portfolio of six properties in Singapore and Australia was 92.6 per cent at March 31, compared with 96.5 per cent a year earlier.

Its weighted average lease expiry by gross rental income was 3.3 years at March 31, slightly down from 3.5 years previously.

FCOT units rose two cents to $1.31 on Thursday (April 21) after the results were announced.

wrennie@sph.com.sg