Fraser's Commercial Trust's China Square, SingaporeFraser's Commercial Trust's China Square, Singapore

Singapore-listed office REIT Frasers Commercial Trust (FCOT) (SGX:ND8U) has posted a distribution per unit (DPU) of 2.21 Singapore cents for its 4Q FY14, representing a year-on-year increase of 6.2% from the 2.08 Singapore cents posted in 2013.

FCOT’s DPU of 8.51 Singapore cents for the financial year ended 30 September 2014 represents a new high for the REIT which is marking its fifth consecutive year of DPU growth since the completion of a recapitalisation exercise.

The REIT’s gross revenue of SGD118.8 million was up 0.5% as compared to the financial year ended 30 September 2013 due to higher occupancy and rental rates achieved by China Square Central and higher revenue contribution from the underlying leases following the expiry of the master lease at Alexandra Technopark.

FCOT’s Singapore properties is said to have benefited from the positive momentum in the city state’s office market, achieving positive weighted average rental reversions of between 6.0% to 18.4% for leases which commenced in 4QFY14.

“The properties in Singapore are poised to benefit from the continuous uptrend in rents, given the rental reversionary potential of the properties”, said Low Chee Wah, CEO for the REIT’s manager.

As at 30 September 2014 FCOT’s portfolio occupancy rate stands at 96.5% with the occupancy rates for Singapore and Australia at 97.4% and 94.9%, respectively. The portfolio weighted average lease to expiry (WALE) stands at 3.9 years, anchored by the long WALE of Caroline Chisholm Centre of 10.8 years.

Units of FCOT are currently listed on the Singapore Exchange at SGD1.36.

Higher occupancy and rental rates achieved by China Square Central has driven FCOT's DPU to record highs.
Higher occupancy and rental rates achieved by China Square Central has driven FCOT's DPU to record highs.

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.