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Frasers Commercial Trust marks record DPU of 8.51 cents for FY2014

FRASERS Commercial Trust (FCOT) achieved a record distribution per unit (DPU) of 8.51 cents for the year ended Sept 30, up 8.7 per cent from a year ago on the back of strong rents and occupancies as well as lower interest costs.

Gross revenue for the year inched up 0.5 per cent to S$118.8 million, mainly driven by the higher occupancy and rental rates achieved by China Square Central and higher revenue contribution from the underlying leases following the expiry of the master lease at Alexandra Technopark.

Net property income (NPI), however, slipped a marginal 0.4 per cent to S$90.6 million. The decline was due mainly to the weaker Australian dollar and slightly higher expenses incurred for Caroline Chisholm Centre arising from repair and maintenance and painting works.

The Singapore properties achieved a higher NPI of 9 per cent year on year, thanks to better performance by China Square Central and the expiry of the master lease at Alexandra Technopark that allows the trust to receive underlying rents which are significantly higher.

"The properties in Singapore are poised to benefit from the continuous uptrend in rents, given the rental reversionary potential of the properties," said Low Chee Wah, chief executive of the trust-manager. "Going forward, the Manager will continue its strategy of growing the Trust through organic and inorganic means."