Frasers Commercial Trust's property in Singapore, China SquareFrasers Commercial Trust's property in Singapore, China Square.

Singapore’s mainboard-listed office REIT Frasers Commercial Trust (FCOT) (SGX:ND8U) has reported no growth in distribution per unit (DPU) for the quarter ended 30 June 2014 as gross revenue slips 1.1%.

DPU for the quarter was recorded at 2.19 Singapore cents, exactly the same as what was distributed for the corresponding period for 2013 despite a 1.5% increase in income available for distribution for unitholders and CPPU holders.

Gross revenue for the REIT fell to SGD29.6 million from SGD29.9 million a year ago despite achieving a 98% portfolio occupancy rate and 100% occupancy for the office tower of China Square Central.

Managers for FCOT has attributed the fall in reported gross revenue to a weaker Australian dollar. The REIT holds 2 Australian properties, Central Park in Perth and Caroline Chisholm Centre in Canberra, in its portfolio.

Excluding these two properties, gross revenue for FCOT’s Singapore properties for 3QFY14 increased 3% year-on-year due to the higher occupancy and rental rates achieved by China Square Central.

In the quarter ahead, managers for the REIT has indicated that it is looking forward to the upcoming expiry of the master lease at Alexandra Technopark in August 2014 as its renewal is expected to boost performance and provide growth in gross revenue in the coming quarters.

Units of FCOT closed the trading day 1.07% higher on the Singapore Exchange to end at SGD1.42.

Frasers Commercial Trust has indicated a 100% commitment for the office tower of China Square.
Frasers Commercial Trust has indicated a 100% commitment for the office tower of China Square.

By Ridzwan Rahmat

Ridzwan has been analysing REITs and business trusts since 2008, and personally manages a portfolio comprising mainly of SGX-listed REITs. He founded REITsWeek in 2013.