FCOT – BT

FCOT posts DPU of 1.38 cents for Q3

FRASERS Commercial Trust (FCOT), whose five-into-one unit consolidation was completed in February this year, yesterday posted a distribution per unit (DPU) of 1.38 cents for the third quarter ended June 30.

This is 10 per cent higher than a year ago, when the DPU, after adjustment for the unit consolidation effect for comparison, was 1.25 cents.

Distribution per Series A convertible perpetual preferred unit (CPPU) was 1.37 cents, unchanged year on year.

FCOT’s Q3 results were driven largely by higher contributions from a local property, KeyPoint, and two Australian properties, Central Park and Caroline Chisholm Centre.

The strengthening of the Australian dollar against the Singapore dollar played a part in boosting contributions from the Australian properties. Together with rising occupancies and higher rental rates, net property income in Q3 rose 10 per cent over the year to $24.9 million.

Total distributable income rose 8 per cent to $13.4 million from a year ago. This comprised $8.7 million in distribution to unitholders – which increased 13 per cent – and $4.7 million in distribution to CPPU holders – which stayed flat.

For the nine months ended June 30, DPU was 4.23 cents, up 4 per cent year on year from 4.05 cents (which was adjusted for the consolidation effect). Distribution per CPPU was unchanged at 4.11 cents.

In January, FCOT sold Cosmo Plaza, an office building in Japan.

Later in May, it divested its investment in the Australian Wholesale Property Fund, using the net proceeds to repay part of an existing Australian dollar loan, creating interest savings.

‘The full effect of the partial repayment of the AUD loan would be seen in the coming quarters,’ said Low Chee Wah, CEO of FCOT’s manager. He added that the disposal of non-core assets has helped to strengthen FCOT’s balance sheet and distributable income. ‘The trust is benefiting from the fruits of the initiative which will place FCOT in a better position for future growth,’ he added.

FCOT closed unchanged on the stock market yesterday at 87 cents.