Frasers Commercial Trust unitholders to get higher payout of 1.58 cents a unit for Q1

Frasers Commercial Trust (FCOT) has achieved a 6.9 per cent rise in distributable income to $10.3 million for the first quarter.

Gross revenue for the three months to Dec 31 declined by 3.2 per cent to $29.7 million.

The higher revenue contribution from the additional 50 per cent interest acquired in Caroline Chisholm Centre as well as higher revenue generated from China Square Central following the expiry of the master lease was offset by the lower revenue contributions due to the sale of KeyPoint and the Japanese properties.

Consequently, net property income fell by 6.9 per cent to $22.9 million.

Despite this, the income available for distribution to unitholders was 4.6 per cent higher at 1.5832 cents per unit, mainly due to lower interest costs.

Average occupancy rates for the overall portfolio remained strong at 94.6 per cent, boosted by healthy portfolio occupancy rates in FCOT's anchor markets of Singapore and Australia, at 92.6 per cent and 98.4 per cent respectively.

During the quarter, the trust manager utilised $159.5 million of the proceeds from the divestment of KeyPoint to prepay a portion of its $320 million and A$86 million transferable term loan facilities, thus further strengthening the financial position of the trust.

FCOT units ended two cents higher at $1.365 on the stock market today.