Frasers Commercial Trust reported Tuesday its fiscal second quarter net property income dropped 10.5 percent on-year to S$20.09 million on lower occupancy at Alexandra Technopark and a weaker Australian dollar.
Gross revenue for the quarter ended 31 March declined 7.9 percent on-year to S$30.40 million, the trust said in a filing to SGX.
The divestment of the property at 55 Market Street in August 2018 also impacted revenue, while higher property tax for Alexandra Technopark hurt net property income, Frasers Commercial Trust said.
The distribution per unit, or DPU, was 2.40 Singapore cents, unchanged from the year-earlier quarter, the filing said.
Daiwa had forecast net property income of S$22.3 million on revenue of S$32.6 million, with a DPU of 2.40 Singapore cents.
The portfolio’s average committed occupancy at end-March was at 81.5 percent, compared with 83.8 percent at the end of the previous quarter, the filing said.
For the Singapore portfolio, occupancy was at 67.5 percent at end-March due to exits of Hewlett-Packard Enterprise Singapore and Hewlett-Packard Singpaore from Alexandra Technopark, the trust said. Frasers Commercial Trust said it was in advanced discussions with various tenants to lease space at Alexandra Technopark.
The Australia portfolio had occupancy levels at 94.0 percent, up from 90.7 percent at the end of the previous quarter, due to take-up by WeWork of 12 percent of the space at the Central Park property, the trust said.
The Farnborough Business Park in the U.K. had 98.0 percent occupancy, the trust said.
The REIT’s portfolio has six commercial buildings in Australia, Singapore and the U.K.