FCOT – BT

FCOT Q1 net property income slips 2.4%

Lower contribution from Cosmo Plaza cited for fall

FRASERS Commercial Trust’s (FCOT) net property income slipped 2.4 per cent year-on-year to $22.95 million for the first quarter ended Dec 31, 2010.

Gross revenue fell 2.3 per cent to $28.98 million.

Trust manager Frasers Centrepoint Asset Management (Commercial) Ltd attributed this to ‘lower contribution from Cosmo Plaza as a result of the expiry of a significant tenancy in August 2010’.

It added: ‘If the financial results for Cosmo Plaza were to be excluded, the net property income for the financial quarter would be comparable to that of last year on the same basis.’

FCOT had successfully completed the divestment of Cosmo Plaza – located in Osaka, Japan – on Jan 18.

‘The divestment of Cosmo Plaza would improve the overall quality of the portfolio and create additional debt headroom for FCOT to enlarge its existing portfolio via future acquisitions,’ said Low Chee Wah, chief executive of the trust’s manager.

Despite the dent in net property income, total distributable income rose 4.1 per cent to $12.64 million.

This was due to ‘an absence of loss from realisation of forward contract incurred in the prior year’.

Distribution per unit (DPU) for the period rose 4.2 per cent to 0.25 cents.

There is no distribution payment this quarter as FCOT distributes semi-annually.

The counter gained 0.5 cents yesterday to close at 17.5 cents.