FCOT – Westcomb
Fraser Commercial Trust – 3Q08 DPU down 30.2% to 1.11 SG cents
- Fraser Commercial Trust (FCOT) announced 3Q08 distribution per units (DPU) of 1.11 SG cents, a 30.2% YoY decrease from 1.59 SG cents in 3Q07. DPU dived 53.8% QoQ from 2.40 SG cents in 2Q08. 3Q08 DPU represented an annualized yield of about 16.3% base on last closing price of S$0.27 on 03 November 2008.
- Gross revenue was 40.9% higher at S$26.6m in 3Q08 while net property income was about 30.0% higher at S$20.0m. Consequently, income available for distribution declined by about 27.3% to S$8.1m in 3Q08. This was mainly due to a 172% surge in finance cost from S$4.0m to S$11.0m. FCOT noted that 3Q08 felt the full quarter effect of additional borrowings utilized to fund the acquisition of Cosmo Plaza, Galleria Otemae, Azabu Aco, Ebara Techno-Serve and KeyPoint. The margins on the Loan Note Facility have increased in 3Q08 under the terms of its extension. Current average borrowing cost stood at about 3.6% and FCOT expects it to increase to approximately 4.3% in Jan 2009 should prevailing floating rates remain.
- FCOT has a debt-to-asset ratio of about 48.6% with about S$473.1 million (representing 52.4%) of debt due to mature within the next 12 months. FCOT achieved overall portfolio occupancy at about 94.5% with weighted average lease expiry of 4 years.