Better occupancies and improved margins for Frasers Commercial Trust's Singapore properties were offset by the weaker Australian dollar in its latest results.
The trust yesterday announced third quarter net property income of $22.9 million, 1 per cent lower than a year earlier.
But distribution to unitholders rose 3 per cent over the period to $14.8 million. This translated to a distribution per unit of 2.19 cents, similar to a year earlier, to be paid out on Aug 29. Gross revenue was $29.6 million, a 1 per cent drop.
As at June 30, the trust had an average portfolio occupancy rate of 98 per cent, with occupancy rates in Singapore at 98.4 per cent and Australia at 97.3 per cent.
A spokesman for the trust manager, Frasers Centrepoint Asset Management (Commercial), noted that properties in Singapore continued to enjoy an uptrend in rentals, achieving positive rental reversions of between 10.7 per cent and 11.5 per cent for leases starting in the third quarter.
Rental reversion at the trust's Central Park property in Perth was 87 per cent, as a new tenant replaced an expired long lease which had been contracted over 10 years ago.
Mr Low Chee Wah, chief executive officer of the trust manager, said it will continue to focus on maintaining strong occupancy rates and manage the expiring leases proactively. "We are looking forward to the upcoming expiry of the master lease at Alexandra Technopark in August 2014 as this will further boost the performance of the Trust and provide greater growth," he said.
The trust has 100 per cent direct interests in China Square Central, 55 Market Street, and Alexandra Technopark; 50 per cent indirect interest in Central Park in Perth, and 100 per cent indirect interest in Caroline Chisholm Centre in Canberra.
This article was first published on July 22, 2014.
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