Frasers Commercial Trust's Q3 payout up 10.4%

Frasers Commercial Trust (FCOT) announced a 10.4 per cent rise in distribution of $21.2 million to unitholders, working out to a distribution per unit (DPU) of 2.4 cents for its third quarter, flat from the same period a year ago.

The real estate investment trust (Reit), which counts properties like Melbourne's 357 Collins Street and Singapore's Alexandra Technopark among its portfolio, recorded a 26.9 per cent fall in its net property income (NPI) to $20.37 million for the three months ended June 30, on the back of a 15.2 per cent drop in revenue to $32.49 million.

The lower revenue, FCOT said, was mainly due to lower occupancy rates for Alexandra Technopark, China Square Central and 55 Market Street in Singapore, as well as Perth's Central Park and Melbourne's 357 Collins Street, coupled with the effects of a weaker Australian dollar.

FCOT said its NPI numbers exclude the results of Farnborough Business Park, which is held as a 50-50 joint venture and equity-accounted. The Reit's average committed occupancy rate was 81.9 per cent as at June 30.

Its plan to divest 55 Market Street to an unrelated third party for $216.8 million is expected to yield an estimated net gain of $76.5 million over the property's book value of $139 million as at Sept 30 last year, with the transaction expected to be completed by Aug 31.

The Reit's counter closed flat at $1.46 at the end of yesterday's trading.

A version of this article appeared in the print edition of The Straits Times on July 26, 2018, with the headline 'Frasers Commercial Trust's Q3 payout up 10.4%'. Print Edition | Subscribe