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Frasers Commercial Trust's net income inches up 7% to $29.3m
Props to Alexandra Technopark’s and 357 Collins Street's contributions.
Singapore mainboard-listed REIT Frasers Commercial Trust (FCOT) ended its FY16 with a bang even with the weaker global economy and challenging office leasing market as it recorded a 13.5% uptick in net property income to $115.6m from last year's $101.9m.
According to the trust, this improvement is primarily driven by the contributions from 357 Collins Street and Alexandra Technopark.
"This is as a result of higher rentals achieved, lower utilities expenses and upfront rental income received," FCOT said.
However, the improvement was slightly offset by the still ongoing construction works for the development of a 16-storey hotel at China Square Central.
"The overall occupancy rate for the Singapore properties was affected by the lower occupancy rate at China Square Central as a result of the on-going construction works for the Hotel and Commercial Project, although the occupancy rates for the remaining Singapore properties remained relatively stable," the trust explained.
The group's full-year distribution per unit were slightly up 1.1% to 9.82 cents, marking the seventh consecutive year of growth since the completion of the recapitalisation exercise in 2009.
CEO of the trust's manager Low Chee Wah said the group will continue to adopt proactive asset management and leasing initiatives given the global economic slowdown.
"In view of the weaker environment, we will also review opportunities for asset enhancements to reposition the properties to stay competitive,” Low noted.
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