Frasers Commercial Trust posts flat Q3 DPU

FRASERS Commercial Trust (FCOT) on Wednesday announced a 10.4 per cent rise in distribution of S$21.2 million to unitholders, working out to a distribution per unit of 2.40 Singapore cents for its fiscal third quarter, flat from the same period a year ago.

The real estate investment trust (Reit), which counts properties like Melbourne's 357 Collins Street and Singapore's Alexandra Technopark among its portfolio, recorded a 26.9 per cent fall in its net property income (NPI) to S$20.37 million for the three months ended June 30, on the back of a 15.2 per cent drop in revenue to S$32.49 million.

The lower revenue, FCOT said, was mainly due to lower occupancy rates for Alexandra Technopark, China Square Central and 55 Market Street in Singapore, as well as Perth's Central Park and Melbourne's 357 Collins Street, coupled with the effects of a weaker Australian dollar.

NPI was also dented due to higher repair and maintenance expenses involving progress payments for re-flooring work for the Caroline Chisholm Centre in Canberra, which is expected to be completed by the end of fiscal 2018.

FCOT noted that its NPI numbers exclude the results of Farnborough Business Park, which is held as a 50-50 joint venture and equity-accounted.

The Reit's average committed occupancy rate was 81.9 per cent as at June 30 this year.

FCOT's plan to divest 55 Market Street in Singapore to an unrelated third party for S$216.8 million is expected to yield an estimated net gain of some S$76.5 million over the property's book value of S$139 million as at Sep 30 last year, with the transaction expected to be completed by Aug 31, 2018.

Its counter closed flat at S$1.46 at the end of Wednesday's trading.