Frasers Commercial Trust DPU dips 4.4% to 2.4 cents

Frasers Commercial Trust (FCOT) has posted a distribution per unit (DPU) of 2.4 cents for the three months ended March 31 - the second quarter of its financial year - down 4.4 per cent from 2.51 cents a year before.

Gross revenue for the quarter fell 18 per cent year-on-year to $33 million, while net property income (NPI) fell 25.3 per cent to $22.4 million.

In a results filing yesterday, FCOT said the poorer performance was due mainly to lower occupancy rates for properties in Singapore as well as Australian properties Central Park and 357 Collins Street; the absence of a one-off payment in relation to a termination of lease in Central Park; and the weaker Australian dollar.

NPI also took a hit from higher repair and maintenance expenses for Caroline Chisholm Centre in Canberra.

The gross revenue and NPI figures are before contribution from FCOT's 50 per cent indirect interest in Farnborough Business Park, which is held as an equity-accounted joint venture. The acquisition was completed on Jan 29.

Including the maiden contribution from Farnborough Business Park, total distributable income for the second quarter was up 2.9 per cent at $20.6 million.

Mr Jack Lam, chief executive officer of Frasers Commercial Asset Management - the Reit's manager - noted that FCOT has the right of first refusal over more than $4 billion of Fraser Property Group's assets for future acquisition growth.

  • AT A GLANCE

  • Gross revenue

    $33 million (-18%)

  • Net property income

    $22.4 million (-25.3%)

  • Distribution per unit

    2.4 cents (-4.4%)

The total DPU for the quarter includes an advance distribution of 0.8 cent per unit for January, paid out in cash on March 12. The balance will be paid out on May 30.

FCOT units ended two cents, or 1.4 per cent, lower at $1.46 yesterday.

A version of this article appeared in the print edition of The Straits Times on April 21, 2018, with the headline 'Frasers Commercial Trust DPU dips 4.4% to 2.4 cents'. Print Edition | Subscribe