FCOT – BT

FCOT’s Q4 DPU dips 1.9%

Quarter’s DPU of 1.52 cts compares with adjusted 1.55 cts a year ago; full year DPU up 2.7%

FRASERS Commercial Trust (FCOT) yesterday posted a distribution per unit (DPU) of 1.52 cents for the fourth quarter ended Sept 30.

This is 1.9 per cent lower compared with the previous year when the DPU, after adjusting for a unit consolidation exercise, was 1.55 cents.

For the full year, FCOT’s DPU was 5.75 cents – 2.7 per cent more than last year’s adjusted DPU of 5.6 cents.

Distribution per Series A convertible perpetual preferred unit (CPPU) for both Q4 and the full year remained unchanged year on year, at 1.39 cents and 5.5 cents respectively.

In Q4, FCOT’s total distributable income increased by one per cent to $14.4 million, following a 4.8 per cent rise in net property income to $24.3 million.

Gross revenue climbed 3.8 per cent to $30.4 million on higher contributions from Central Park, Caroline Chisholm Centre and KeyPoint. At KeyPoint, the occupancy rate grew to 88.4 per cent from 81.1 per cent a year ago.

Gross revenue would have been higher if not for lower contributions from the sale of Cosmo Plaza in January, and from lower rental rates at 55 Market Street.

For the full year, FCOT’s total distributable income rose 3.5 per cent to $55.2 million, and its net property income was 3.2 per cent higher at $96 million. Gross revenue increased 1.4 per cent to $119.6 million.

‘The trust has achieved growth in its distributable income to unitholders despite the negative rental reversion in some of its leases,’ said Low Chee Wah, CEO of FCOT’s manager.

Over the financial year, the average occupancy rate for FCOT’s portfolio shot up to 98 per cent from 90.8 per cent a year ago.

Its gearing at Sept 30 stood at 36.6 per cent, down from 39.6 per cent last year.

‘The manager will embark on an exercise to carry out an early re-financing of the trust’s existing debts which are due towards the end of next year to take advantage of the prevailing low interest rate environment,’ said Mr Low.

‘In addition, the manager will continue to review and re-shape the portfolio and to improve the quality of the assets so as to drive better portfolio and financial performance for our unitholders.’

FCOT gained half a cent on the stock market yesterday to close at 79 cents.