BT : 26% jump in FCOT's Q2 net property income

Business Times - 23 Apr 2010

26% jump in FCOT's Q2 net property income

By EMILYN YAP

FRASERS Commercial Trust (FCOT) yesterday posted a net property income of $23.6 million for the second quarter ended March 31 - up 26 per cent from a year ago.

This helped boost total distributable income, which rose 167 per cent over the same period to $14.5 million. Of this, unitholders' share was $9.8 million, while holders of Series A convertible perpetual preferred units (CPPU) got a share of $4.6 million.

'The contribution from Alexandra Technopark together with better performance of the Australian properties and lower financing costs contributed to the increase in distribution income,' said CEO of FCOT's manager, Low Chee Wah.

FCOT bought Alexandra Technopark in August last year and the property contributed to earnings for the full second quarter. From Down Under, Central Park and Caroline Chisholm Centre brought in more revenue largely as the Australian dollar strengthened.

Distribution per unit (DPU) was 0.32 cents in Q2. This is 56 per cent less than the 0.72 cents a year ago, as the unit base grew from a rights issue in August last year.

Adjusting for the cash call, DPU in Q2 2009 would have been 18 cents, translating to a 78 per cent year-on-year increase.

Distribution per CPPU in Q2 was 1.36 cents.

For the first half ended March 31, FCOT's net property income was $47.1 million, rising 27 per cent from a year ago. Total distribution available surged 81 per cent to $26.6 million.

DPU in H1 was 0.56 cents, while distribution per CPPU was 2.74 cents. These distributions will be paid out on May 27.

As at March 31, FCOT's portfolio had a value of some $1.9 billion. The average occupancy rate was 92.4 per cent, down from 92.9 per cent as at Dec 31 last year.

The trust's gearing as at March 31 was 40.1 per cent, dropping slightly from 40.4 per cent a quarter ago.

FCOT lost half a cent yesterday to close at 14 cents.

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Boost: Central Park (above) and Caroline Chisholm Centre brought in more revenue as the A$ strengthened