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”)
|Net Property Income||29,378||25,444||15.0|
|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.
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.
If we dont annualized but use the actual rolling DPU contributions in the past, whats the yield we are looking at at this moment?
Based on the distribution of 2.51 cents for Q12016 and closing price of $1.21 today (25th Jan), the yield is 2.07%.
Based on the annualised distribution of 9.96 cents and closing price of $1.21 today (25th Jan), the yield is 8.23%.