Frasers Commercial Trust lifts Q3 distribution per unit by 28.8% to 2.19 cents

Frasers Commercial Trust's (FCOT's) distribution to unitholders for the third quarter rose by 31.2 per cent to $14.4 million, despite a fall in revenue and net property income (NPI).

Gross revenue and NPI for the three months ended June 30 fell by 16.1 per cent and 13.4 per cent to $30 million and $23.1 million respectively.

The drop was largely due to the divestments of KeyPoint and some properties in Japan.

Distribution per unit jumped by 28.8 per cent to 2.19 cents.

combination of several factors contributed to the higher income.

During the quarter, there was an additional 50 per cent interest in Caroline Chisholm Centre and higher rental rates achieved for properties, coupled with lower interest costs.

Redemption of 319.7 million convertible perpetual preferred units in January and April also led to the increase in distribution per unit.

The trust achieved a strong average occupancy rate of 98.1 per cent for the overall portfolio in the third quarter.

This was boosted by healthy portfolio occupancy rates in Singapore and Australia, at

97.4 per cent and 99.5 per cent respectively.

Meanwhile, asset enhancement works for the office tower at China Square Central have been completed.

This will strengthen FCOT's property portfolio and position the trust for stronger growth in the future, said the trust manager.

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