Frasers Commercial Trust fiscal 3Q18 net property income falls 26.9 percent

Singapore two-dollar bills

Frasers Commercial Trust reported on Wednesday that its fiscal third quarter net property income fell 26.9 percent on-year to S$20.37 million amid lower occupancy rates for its Singapore properties, Central Park and 357 Collins Street and a weaker Australian dollar.

The trust also faced higher repair and maintenance expenses for Caroline Chisholm Centre, the trust manager said in a filing to SGX after the market close on Wednesday.

On a quarter-on-quarter basis, net property income for the fiscal third quarter ended 30 June was 9.2 percent lower on a lower occupancy rate at Alexandra Technopark and a weaker Australian dollar, coupled with higher maintenance expenses for Caroline Chisholm Centre, the filing said.

That was partly offset by a higher occupancy rate and average rents achieved for China Square Central, it said.

The distribution per unit (DPU) for the quarter was 2.4 Singapore cents, flat with the year-earlier quarter, but that was based on a larger number of units in the just ended quarter, it said.

At the end of the quarter, the portfolio average committed occupancy rate was 81.9 percent, with the Singapore portfolio’s rate at 72.5 percent, the Australian portfolio’s rate at 90.1 percent and the U.K.-based Farnborough Business Park, which is held as a joint venture, having a rate of 98.1 percent, the filing said.

It said the Singapore portfolio occupancy rate was mainly affected by the lease expiration for Hewlett-Packard Enterprise Singapore and the phased reduction in lease area by Hewlett-Packard Singapore at Alexandra Technopark.


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