Frasers Commercial Trust's China Square (Photo: REITsWeek)Frasers Logistics and Commercial Trust's Cross Street Exchange (Photo: REITsWeek)

Singapore-listed office REIT Frasers Commercial Trust recorded a DPU of 2.45 Singapore cents for its 4Q 2016, a year-on-year decline of 2.8% from the 2.52 cents posted in the corresponding period of 2015.

However DPU for the full financial year of 2016 came in at 9.82 cents, an increase of 1.1% from the 9.71 cents achieved in FY 2015.

This is the highest full year DPU since the REIT was listed in 2006.

Gross revenue for the period came in at SGD39.3 million (USD28 million) while net property income was recorded at SGD29.3 million, representing increases of 5.7% and 6.9% respectively.

Correspondingly distributable income for the period came in at SGD19.5 million, an increase of 3.5% from the SGD18.9 million achieved for 4Q 2015.

The REIT has attributed the results mainly to full year contribution from 357 Collins Street, and the performance of Alexandra Technopark, both of which saw positive rental reversions during the quarter.

“We are pleased that the trust continues to achieve new highs, and this is particularly commendable given the weaker global economy and challenging Singapore office leasing environment”, said Low Chee Wah, CEO of the REIT’s manager, in statement on the results.

The REIT’s average portfolio occupancy rate as at 30 September 2016 was at 93.0%, with average occupancies of 92.5% and 93.8% for its Singapore and Australia portfolios respectively.

Frasers Commercial Trust’s aggregate portfolio leverage for the period was at 36.0%, with 85.0% of gross borrowings on fixed interest rate.

“With the weaker global economic environment and Singapore office market outlook, we will continue to adopt proactive asset management and leasing initiatives”, said Low, adding that the REIT will also review opportunities for asset enhancements to reposition its properties for competitiveness.

Units of Frasers Commercial Trust last changed hands on the Singapore Exchange at SGD1.40.

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.