Frasers Commercial Trust reported Monday its fiscal third quarter net property income fell 3 percent on-year to S$19.75 million, in part due to lower gross revenue and higher property tax expense at Alexandra Technopark.
Gross revenue for the quarter ended 30 June was S$30.22 million, down 7 percent on-year, the trust said in a filing to SGX.
The revenue decline was mainly on lower occupancy at Alexandra Technopark, divestment of 55 Market Street on 31 August 2018 and effects of the average weaker Australia dollar, partially offset by higher rent revenue for China Square Central, Frasers Commercial Trust said.
The distribution per unit (DPU) was 2.40 Singapore cents for the quarter, unchanged on-year, the filing said.
Daiwa had forecast net property income of S$20.8 million on gross revenue of S$31.1 million, with a DPU of 2.40 Singapore cents.
“In recent months we have witnessed accelerated leasing momentum and increased level of interest by high-quality local and international names for Alexandra Technopark,” Jack Lam, CEO of the REIT’s manager, said in the statement.
“These observations strongly attest to the heightened appeal of the property as a business address after its recent upgrading and transformation, and at the same time clearly demonstrate the benefits of a well thought-through and executed asset plan,’ he added.
“We are also eagerly anticipating the completion of asset enhancement works at the retail podium of China Square Central in the near future, and look forward to delivering positive outcomes for that project as well,” Lam said.
China Square Central is undergoing a S$38 million renovation to reposition and expand the retail podium, the filing said, adding around 60 percent of the space has been pre-committed, with another 20 percent under advanced negotiations.
The portfolio’s occupancy rose to 94.1 percent at end-June, from 81.5 percent in the previous quarter, the trust said.
The Singapore portfolio’s committed occupancy jumped by 26.4 percentage points on-quarter as Alexandra Technopark’s committed occupancy increased to 93.7 percent from 59.2 percent on lease commitments from Google Asia Pacific, the filing said.
For the nine-month period, the trust reported net property income fell 10 percent on-year to S$60.96 million on gross revenue of S$92.16 million, down 9 percent on-year; DPU for the nine-month period was 7.20 Singapore cents, unchanged on-year, it said.
Frasers Commercial Trust’s portfolio had six properties at end-June, with two located in Singapore, three in Australia and one in the U.K.
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