Frasers Commercial Trust sees 2.9% rise in DPU for Q2

An artist's Impression of the proposed Capri by Fraser hotel at China Square Central.
An artist's Impression of the proposed Capri by Fraser hotel at China Square Central. PHOTO: FRASERS COMMERCIAL TRUST

SINGAPORE - Frasers Commercial Trust (FCOT) posted a 2.9 per cent increase in distribution per unit to 2.45 Singapore cents for the second quarter ended March 31 from 2.38 cents a year ago.

This was on the back of a 19.5 per cent increase in distributable income to S$19.3 million.

Net property income grew 16.7 per cent to S$28.8 million from S$24.7 million, bolstered by better performances from Alexandra Technopark and Caroline Chisholm Centre and contribution from 357 Collins Street, which was acquired in August 2015 and has a full occupancy rate.

FCOT said China Square Central office tower has hit full occupancy, and that properties in Singapore continue to achieve positive rental reversions.

Said Mr Low Chee Wah, chief executive officer of the trust's manager: "Our dedicated and proactive leasing initiatives have resulted in a significant decrease in lease expiries in FY16 despite the headwinds in the Singapore office market.

"During the quarter, the lease expiries at Alexandra Technopark reduced substantially with the renewal of major leases. As a result, only 6.4 per cent of the portfolio leases by gross rental income are left to be renewed for the remainder of FY16, compared to 15.4 per cent in the previous quarter."

FCOT achieved an occupancy rate of 92.6 per cent for its portfolio as at March 31, 2016.

It added that construction works for the hotel and commercial project at China Square Central are on track.