Frasers Commerical Trust reports nearly flat fiscal 4Q net property income, missing Daiwa estimate

Alexandra Technopark. Source: Frasers PropertyAlexandra Technopark. Source: Frasers Property

Frasers Commercial Trust reported Tuesday its fiscal fourth quarter net property income edged up 0.5 percent on-year to S$21.73 million, missing a Daiwa forecast.

Higher rental income from the China Square Central and Central Park properties and higher accounting income on lease recognition at Alexandra Technopark was offset by higher amortization of leasing incentives at the Central Park and 357 Collins Street properties, higher property tax for Alexandra Technopark and a 6.1 percent drop in the Australian dollar against the Singapore dollar, the trust said.

In addition, the 55 Market Street property was divested on 31 August, Frasers Commercial Trust said.

Gross revenue for the quarter ended 30 September was S$32.90 million, up 1.3 percent on-year, the trust said in a filing to SGX.

The distribution per unit (DPU) was 2.40 Singapore cents, unchanged on-year, although the number of units rose to 912.7 million from 892.6 million in the year-ago quarter, Frasers Commercial Trust said.

Daiwa had forecast net property income of S$25.2 million on gross revenue of S$35.5 million, with a DPU of 2.45 Singapore cents

The portfolio’s average committed occupancy rate improved to 95 percent as of 30 September, from 94.1 percent at end-June, the filing said.

For the full fiscal year, the trust posted net property income of S$82.69 million, down 7.4 percent, on gross revenue of S$125.06 million, down 6.2 percent on-year, mainly on lower occupancy for Alexandra Technopark, the divestment of 55 Market Street and the effects of a weaker Australian dollar, partly offset by higher rental revenue from China Square Central.

The full-year DPU was 9.60 Singapore cents, unchanged on-year, the trust said.

In its outlook, Frasers Commercial Trust pointed to the renovation works on the retail podium at China Square Central, with business operations there expected to begin in phases from November.

The net lettable area of the retail podium has been increased to around 80,000 square feet from around 64,000 square feet previously, with around 80 percent of the space pre-committed and another 10 percent under active negotiations, the filing said.

“We look forward to the impending resumption of business at, and income contribution from, the retail podium of China Square Central. Visitors can expect a refreshed and exciting mix of food and beverage, health and fitness, lifestyle and other offerings set within a rejuvenated and appealing environment,” Jack Lam, CEO of the trust’s manager, said in the statement.

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