SMRT Non Fare Business Saved The Day


SMRT announces its 3Q FY2016 results on 25th January 2015. Similar to 2QFY2016, operating expenses increased 2.4% to $303.0 million due to higher repairs and maintenance costs, staff costs, depreciation, and other operating expenses.

SMRT Results 3QFY2016

Fare Business

The group’s rail operations (Train and LRT) posted a combined loss of $1.1 million in YTD FY2016 as the increase in operating expenses outpaced revenue growth.

Bus operations posted an operating profit of $3.4 million in 3Q FY2016 on the back of higher revenue, training grants, reliability incentives and lower diesel costs, partially offset by higher staff costs, depreciation, and repairs and maintenance expenses.

Non-Fare Business

Taxi operating profit increased to $4.8 million and Rental operating profit increased to S$21.8 million.

This was due mainly to:

  • Higher taxi rental contribution and more early retirement of taxis in 3Q FY2015.
  • Higher rental revenue contribution from train stations and bus interchanges.

Things to Note

Rail Financing Framework

No news since the last mention which causes the surge in share price (SMRT Shares Surges on Hopes of Rail System Reform).

Bus Services License Expiry

SMRT is in discussion with the authorities on the contract terms for the remaining bus services beyond the license expiry in August 2016.


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”)

(S$ ‘000)
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


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%.


  • 55 Market Street
  • China Square Central
  • Alexandra Technopark


  • 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.

Soilbuild REIT DPU Increases for 4QFY15

Soilbuild REIT Logo

Soilbuild REIT announces its results for 4Q2015 on 21st January 2016. Distribution Per Unit (DPU) increase 1.8% to 1.614 cents as compared to 1.585 cents a year ago. This brought the total DPU for 2015 to 6.487 cents as compared to 6.193 cents in 2014.

Based on the market closing price of S$0.77 on 31st December 2015, the yield for Soilbuild REIT is 8.42% for year 2015.

(S$ ‘000)
Gross Revenue 20,434 17,682 15.6
Net Property Income 17,490 14,932 17.1
Distributable Amount 15,091 12,892 17.1
Distribution Per Unit (“DPU”) (cents) 1.614 1.585 1.8
Annualised DPU (cents) 6.487 6.193 4.7

Soilbuild REIT DPU

Lease Expiry

From the below table, we can see that all of the properties in its portfolio have long land lease expiry.

Property Land Tenure Expiry
Solaris 31 May 2068
West Park BizCentral 31 July 2068
Eightrium @ CBP 15 Feb 2066
Tuas Connection 30 Sep 2050
NK Ingredients 30 Sep 2046
COS Printers 31 Jul 2042
Beng Kuang Marine 29 Oct 2056
Tellus Marine 15 Feb 2054
KTL Offshore 18 Jul 2066
Speedy-Tech 30 Apr 2050
Technics Offshore 20 Mar 2038

Things to Note

Weakness in Manufacturing Sector

Manufacturing sector is slowing down which affects the industrial property market. This has a downward pressure on industrial rents and occupancy.

Long Term Leases

Long term leases of 5 to 15 years provide stability.

Fixed Annual Rental Escalation of Master Leases

Fixed annual rental escalation of master leases applies to its tenants (Solaris, NK Ingredients, COS Printers, BK Marine, Tellus Marine, KTL Offshore, Speedy-Tech, Technics).