FCOT's Q1 DPU up 2%

Singapore

HIGHER rentals from Alexandra Technopark and the first full quarterly contribution from an Australian property lifted Frasers Commercial Trust's (FCOT) showing for the first quarter ended December 2015.

The trust posted a higher distribution per unit (DPU) of 2.51 Singapore cents for the first quarter from 2.46 Singapore cents a year ago.

The trust's distribution income rose 18 per cent to S$19.7 million which translated to a 2 per cent growth in DPU following an increase in the number of issued and issuable units mainly due to a private placement completed in August 2015.

The period marked the first full quarter of contribution from 357 Collins Street in Melbourne, said the trust in a statement.

Gross revenue was up 12 per cent to S$39.6 million while net property income rose 15 per cent to S$29.4 million, thanks to higher rentals, upfront rental income and lower utilities expenses at Alexandra Technopark and the completion of the Melbourne property acquisition in August 2015.

However, the increase was partially reduced by the effects of the weakening Australian dollar on the income from Australian properties and lower occupancy rate for China Square Central and Central Park.

Describing the Melbourne property as a "yield accretive acquisition", FCOT said that occupancy rate has been rising and as at end-December 2015, stood at 100 per cent committed occupancy.

The higher occupancy rate led 357 Collins Street to post an actual gross revenue and net property income for the first quarter that was higher by 9.9 per cent and 13.8 per cent respectively compared to the forecast.

FCOT units fell two Singapore cents or 1.6 per cent to S$1.20 on Wednesday.