SINGAPORE (Jan 20): The manager of Frasers Commercial Trust (FCOT) has announced a distribution to unitholders of $21.6 million for the 1Q19 ended Dec 2018.
This translates to a DPU of 2.40 cents, unchanged from the previous quarter and 1Q18.
The distribution to unitholders of $21.6 million for 1Q19 was higher than the distributions of $21.4 million for 4Q18 and $19.5 million for 1Q18.
On a year-on-year basis, 1Q19 portfolio gross revenue was 10.7% lower, mainly due to the lower occupancy rates for the Singapore properties, divestment of 55 Market Street at end August and effects of the average weaker Australia Dollar.
1Q19 NPI was 15% lower year-on-year, mainly due to the lower gross revenue, higher property tax for Alexandra Technopark and higher amortisation of lease incentives for Central Park and 357 Collins Street.
The NPI figures above are before contributions from the 50% indirect interest in Farnborough Business Park (FBP) in the United Kingdom, which is held as a joint venture and equity-accounted.
The 50% interest in FBP was acquired on Jan 29 2018 and the attributable NPI for 1Q19 was $3.6 million. Including the attributable NPI of FBP, portfolio NPI for 1Q19 would be $24.7 million, stable on a year-on-year basis.
Frasers Commercial Asset Management says despite\ uncertainties in the UK market due to the Brexit process and its outcome, it expects the performance of FBP to remain stable given its solid fundamentals, which include a high-quality tenant base, healthy occupancy rate of 98.1% and long WALE of 7.3 years as at Dec 31 2018.
As at Dec 31 2018, FCOT’s portfolio average committed occupancy rate rose marginally to 83.8% from 83.4% as at Sept 30 2018.
At Alexandra Technopark, a $45 million asset enhancement initiative to rejuvenate and transform the property is nearing full completion. A new 13,300sf amenity hub, which houses a wide array of food and beverage, social and other amenities, is already in operation and has greatly improved tenants’ and visitors’ experience at the property.
At China Square Central, a $38 million asset enhancement initiative to rejuvenate and reposition the retail podium at 18 Cross Street started in 1Q18 and is expected to be completed in the second half of 2019. The initiative will create an exciting destination focusing on food and beverage, wellness and services. At the same time, the net lettable area of the retail podium is expected to increase from 64,000 sf to around 78,000 sf, which will add to its income-generating potential.
Units in FCOT closed at $1.45 on Friday, down 10 cents from a year ago.
