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Frasers Commercial Trust DPU Rises for Q1FY16

Frasers Commercial Trust Logo

Frasers Commercial Trust announces it results for first quarter 2016 on 20th January 2016. A higher Distribution Per Unit (DPU) of 2.51 cents was announced which is 2% increase as compared to 2.46 cents in Q1FY15. The results are attributed to higher contribution from Alexandra Technopark and first full quarter contribution from 357 Collins Street but was offset by weaker Australia dollar and lower occupancy in Central Park.

1 October 2015 to 31 December 2015 (“1Q2016”) vs 1 October 2014 to 31 December 2014 (“1Q2015”)

1Q2016
(S$’000)
1Q2015
(S$ ‘000)
YoY(%)
Gross Revenue 39,623 35,459 12.0
Net Property Income 29,378 25,444 15.0
Distributable Amount 19,702 16,712 18.0
Distribution Per Unit (“DPU”) (cents) 2.51 2.46 2.0
Annualised DPU (cents) 9.96 9.76 2.0

Portfolio

Frasers Commercial Trust portfolio consists of six properties. Singapore properties in terms of value makes up 62% and Australia properties make up the remaining 38%.

Singapore

  • 55 Market Street
  • China Square Central
  • Alexandra Technopark

Australia

  • 357 Collins Street
  • Caroline Chisholm Centre
  • Central Park

Debt Maturity Profile

There is no refinancing required until FY17. Frasers Commercial Trust has hedged 81% of gross borrowings on fixed rate. Gearing ratio is healthy at 36.2%.

Weighted Average Lease Expiry

Frasers Commercial Trust has a healthy average occupancy rate of 92.9% and healthy WALE of 3.3 years.

Proactive leasing has reduced lease expiries in FY18 from 31.7% to 25.5%. However, looking at current FY16, 68 leases are expiring which is worrying.

FCOT 1Q2016 Lease Expiry

Things to Note

Developments at China Square Central

A 16 storey hotel will be build at China Square Central. Construction work will commence in 1Q2016 and expected to be completed by mid 2019.

Long WALE at Caroline Chisholm Centre

Long WALE of 9.5 years due to single occupancy by Commonwealth of Australia.

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