Company Briefs: Frasers Commercial Trust

Frasers Commercial Trust

Frasers Commercial Trust kept distribution per unit stable at 2.4 cents in the first quarter, even with hits to top and bottom lines, as distributable income was propped up on various fronts. Net property income fell by 15 per cent in the same period the year before, to $21.1 million, according to financial statements released yesterday evening.

The earnings decline tracked an 11 per cent drop in gross revenue, to $31.5 million, which the manager attributed to the sale of a property in August last year, lower occupancies at China Square Central and Alexandra Technopark, and the effects of a weaker Australian dollar.

But distributable income still rose by 11 per cent to $21.6 million, helped by capital returns from hotel development rights at China Square Central, and by paying the management fee in units instead of in cash.

Distributable income was also shored up by contributions from Farnborough Business Park, in which Frasers Commercial Trust took a 50 per cent stake in January last year.

The real estate investment trust's six-property portfolio had an occupancy rate of 80.7 per cent as at Dec 31 last year, with a weighted average lease expiry of 4.3 years. It has interests in Australia and Britain, and in Singapore, where it owns both Alexandra Technopark and China Square Central in Cross Street.

Falcon Energy

Offshore and marine company Falcon Energy Group announced during midday trading break yesterday that it will suspend coupon payment on notes due today as it embarks on a complete debt overhaul.

The mainboard-listed company, in filings with the Singapore Exchange, also requested trading in its shares to be suspended.

Falcon blamed the moves on the prolonged slump in the oil services market and the need to conserve liquidity for business operations.

It said the company will embark on a complete restructuring of all its liabilities "which will include our bankers, note holders and other unsecured creditors".

Discussions with different stakeholders are currently ongoing, it added.

Falcon said it intends to propose a certain amount of conversion of its $50 million notes due on Sept 19, 2017, to ordinary equity in the company, and a meeting will be convened shortly to discuss further steps and the restructuring of the notes.

The company is also in the process of discussing a restructuring of term loans with its bankers, said Falcon.

A version of this article appeared in the print edition of The Straits Times on January 19, 2019, with the headline 'Company Briefs'. Print Edition | Subscribe