SINGAPORE (Oct 20): The manager of Frasers Commercial Trust (FCOT) has posted a distribution per unit (DPU) of 2.41 cents for the 4Q17 ended Sept, declining 1.6% from its DPU of 2.45 cents in 4Q16 a year ago on lower revenue and net property income.
This brings the trust’s DPU for FY17 to 9.82 cents, unchanged from a year ago.
Revenue for 4Q17 fell 3% to $38.3 million from $39.3 million in the previous year, due to lower income from its China Square Central and Alexandra Technopark properties in Singapore, as well as Central Park in Perth, Australia.
This was offset in part by higher contributions from the trust’s Australia properties Caroline Chisholm Centre and 357 Collins Street.
Net property income (NPI) fell 9% to $26.7 million from $29.3 million in the previous year as contributions from all properties across FCOT’s portfolio registered a decline save for 55 Market Street.
According to FCOT’s manager, the decrease was mainly due to higher repair and maintenance works for Caroline Chisholm Centre incurred during the period as well as lower occupancy rates for Alexandra Technopark, China Square Central and Central Park.
The lower NPI was however partially offset by the effects of the average stronger Australian dollar during 4Q17, as compared to 4Q16, on the income from Australian properties.
Jack Lam, CEO of the manager, says plans have been initiated for the enhancement and repositioning of the retail podium in China Square Central, for a budget of around $38 million.
“This asset enhancement initiative aims to update and upgrade the shopper experience and tenancy mix in the mall and increase its leasable area, among other things, to enhance its market positioning and long-term income-generating potential,” says Lam.
“This timely and forward-looking move will enable the mall to better capitalise on the uplift in human traffic and general activity level that will come about from the planned opening of the new Capri by Fraser hotel within the development in 2019.”
Units of FCOT closed at $1.40 on Thursday.
