FCOT – BT

FCOT’s Q4 property income rises 16%

Distributable income surges 78%; DPU up 55% to 0.31 cents

FRASERS Commercial Trust (FCOT) rounded off its financial year ended Sept 30 with a strong set of earnings.

Net property income for the fourth quarter rose 16 per cent year on year to $23.2 million, boosted largely by contributions from Alexandra Technopark, which FCOT bought in August last year.

Contributions from two of FCOT’s properties in Australia, Central Park and Caroline Chisholm Centre, also grew partly as the Australian dollar strengthened.

Total distributable income was $14.3 million, surging 78 per cent from a year ago. Distribution per unit (DPU) rose 55 per cent to 0.31 cents. Distribution per Series A convertible perpetual preferred unit (CPPU) was 1.39 cents – 2.6 times of 0.54 cents last year.

‘We have been experiencing an increase in leasing activity in the Singapore and Australia properties due to new leases and expansion by existing tenants. This has translated to higher occupancies which will boost the distributable income,’ said Low Chee Wah, CEO of FCOT’s manager.

‘With the recovery in the economy, we have also seen the rental rates increased accordingly.’

At China Square Central, for instance, the committed occupancy rate was 93.1 per cent in September, up from 91.5 per cent in June.

FCOT also enjoyed an increase in its portfolio value. Based on its latest property valuation exercise as at Sept 30, its portfolio was worth $1.96 billion, up 1.9 per cent from the last valuation in 2009.

The trust’s properties in Singapore and Australia posted valuation gains, but those in Japan saw their values slip.

For the full year, FCOT’s net property income was $93 million, rising 25 per cent from last year. Total distributable income shot up by 89 per cent to $53.3 million.

DPU for the full year was 1.12 cents, up 29 per cent; distribution per CPPU was 5.5 cents, some 10.2 times of 0.54 cents a year ago.

FCOT will pay a distribution of 0.5549 cents per ordinary unit and a distribution per CPPU of 2.7575 cents for the second half of the financial year on Nov 29.

The counter closed unchanged yesterday at 16.5 cents.