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Frasers Commercial Trust declares stable Q4 DPU of 2.4 S cents

FRASERS Commercial Trust’s (FCOT) distribution per unit (DPU) was unchanged from a year ago at 2.4 Singapore cents per unit for its fourth quarter ended Sept 30.

Gross revenue inched up 1.3 per cent to S$32.9 million for the quarter, from S$32.5 million a year ago, the commercial real estate investment trust’s (Reit) manager said in a regulatory filing on Tuesday morning.

Net property income (NPI) grew 0.5 per cent on the year to S$21.7 million for the quarter, from S$21.6 million.

This was mainly due to higher rental incomes from China Square Central and Central Park, higher accounting income on a straight-line basis over the term of leases recognised for Alexandra Technopark, lower property maintenance expenses for Caroline Chisholm Centre and the Singapore properties, and lower utilities for Alexandra Technopark.

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The higher NPI for the quarter was partially offset by higher amortisation of leasing incentives for Central Park and 357 Collins Street, higher property tax for Alexandra Technopark, a 6.1 per cent decline in the average Australian dollar to Singapore dollar exchange rate for Q4 2019 compared to Q4 2018, as well as the disposal of 55 Market Street being completed on Aug 31.

Total income available for distribution rose 2.3 per cent year on year to S$21.9 million, from S$21.4 million.

The distribution will be paid out on Nov 29, after books closure on Oct 31.

The Reit manager will apply the distribution reinvestment plan for the Q4 distribution, which gives unitholders the option to receive their distributions in the form of units and/or cash.

Meanwhile, for the full year ended Sept 30, DPU was also flat at 9.6 Singapore cents from a year ago, and income available for distribution grew 5 per cent to S$86.9 million. Gross revenue was 6.2 per cent lower at S$125.1 million, while NPI eased 7.4 per cent to S$82.7 million for the year.

While there are currently uncertainties with regard to the outcome and impact of Brexit, the Reit manager said it remains confident on the long-term prospects of the UK market.

At China Square Central, asset enhancement works for the retail podium at 18 Cross Street obtained its temporary occupation permit in Q4. The newly revamped retail podium is expected to commence business operation in phases starting from November 2019. Close to 80 per cent of the retail space has been pre-committed, with a further 10 per cent under active negotiations, the manager said on Tuesday.

Units of FCOT closed one Singapore cent or 0.62 per cent higher at S$1.62 on Monday.