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FRASERS Commercial Trust (FCOT) on Thursday posted a 2.8 per cent fall in distribution per unit (DPU) to 2.45 Singapore cents for the fourth quarter ended Sept 30 (Q4 2016), down from 2.52 cents last year.
Distribution income grew 4 per cent year-on-year from S$18.82 million to S$19.49 million.
Net property income for Q4 2016 was S$29.3 million, 7 per cent higher than that of Q4 2015, due mainly to the completion of the acquisition of 357 Collins Street in August 2015, and higher income contribution from Alexandra Technopark as a result of higher rental rates and lower utilities expenses.
The increase was partially reduced by lower occupancy rate for China Square Central and Central Park, as well as higher maintenance expenses for Caroline Chisholm Centre.
Gross revenue for the quarter increased 5.7 per cent to S$39.3 million, up from S$37.2 million a year ago.
For the financial year ended Sept 30 (FY2016), the trust's distributable income of S$77.6 million and DPU of 9.82 Singapore cents were up 14.5 and 1.1 per cent respectively, compared to the prior financial year. Frasers said that these marked the highest distributable income and DPU since the trust was listed in 2006.
In FY2016, gross revenue increased 10.1 per cent year-on-year to S$156.5 million, while net property income was up 13.5 per cent year-on-year to S$115.6 million.
FCOT's properties were valued at S$2 billion as at Sept 30, 1.8 per cent higher compared to a year ago, said the trust. Its properties in Singapore include China Square Central, Alexandra Technopark and 55 Market Street.
Low Chee Wah, chief executive officer of Frasers Centrepoint Asset Management, which manages FCOT, said: "With the weaker global economic environment and Singapore office market outlook, we will continue to adopt proactive asset management and leasing initiatives.
"In view of the weaker environment, we will also review opportunities for asset enhancements to reposition the properties to stay competitive."