Frasers Commercial Trust Q4 DPU dips to 2.4 Singapore cents

DESPITE a revenue slide, contributions from Farnborough Business Park, higher distribution from capital returns and payment of management fee in units in lieu of cash gave a lift to results for commercial and business park owner Frasers Commercial Trust (FCOT) for its fourth quarter.

Distribution per unit (DPU) dipped to 2.4 Singapore cents from 2.41 Singapore cents in the year-ago period, the group said in a Singapore Exchange filing on Friday morning.

For the full year, DPU slipped to 9.6 Singapore cents from 9.82 Singapore cents in the previous year. Books will close on Oct 30 and payment will be made on Nov 29.

FCOT's Q4 income available for distribution increased 10.4 per cent to S$21.4 million from the preceding year. For the three months ended Sept 30, gross revenue dropped 15.2 per cent to S$32.5 million from the year-ago period.

This was due to three factors: lower occupancy rates for its properties China Square Central, Alexandra Technopark, Central Park in Perth and 55 Market Street; effects of the average weaker Australian dollar during Q4 2018 as compared to Q4 2017 on the income from Australian properties; and the disposal of 55 Market Street which was completed on Aug 31, 2018.

Net property income fell 19.2 per cent to S$21.6 million from the preceding year.

For the full year, income available for distribution expanded 5.2 per cent to S$82.7 million from the previous year. Gross revenue sank 14.8 per cent to S$133.3 million from the year-ago period. Net property income fell 21.6 per cent to S$89.3 million from the previous year. Net asset value per unit at the end of the financial year was S$1.59.

FCOT's properties now comprise China Square Central, Alexandra Technopark, Central Park in Perth, Caroline Chisholm Centre in Canberra, 357 Collins Street in Melbourne and a 50 per cent indirect interest in Farnborough Business Park in the UK.

It has an average committed occupancy rate of 83.4 per cent (excluding the China Square retail podium due to renovations) and committed WALE (weighted-average lease expiry) of 4.7 years, taking into account those renovations and also excluding lease incentives and retail turnover rents.

FCOT said a S$45 million asset enhancement initiative (AEI) at Alexandra Technopark announced in January 2017 is nearing completion. The AEI at China Square Central is expected to complete in the second half of 2019.

FCOT units ended unchanged at S$1.41 on Thursday's close.