SINGAPORE (Oct 19): The manager of Frasers Commercial Trust (FCOT) declared a DPU of 2.40 cents for 4Q18 ended Sept, 0.4% lower compared to 4Q17.

This brought FY18 DPU to 9.60 cents, 2.2% lower compared with FY17 due to the higher unit base in FY18.

Portfolio gross revenue for 4Q18 was $32.5 million, 15.2% lower compared with 4Q17. Net property income of $21.6 million for 4Q18 was 19.2% lower than 4Q17, mainly due to lower utilities expense for Alexandra Technopark and lower repair and maintenance expense for Caroline Chisholm Centre. Distribution to unitholders came in at $21.4 million, 10.4% higher.

FCOT’s portfolio average committed occupancy rate rose to 83.4% at Sept 30 from 81.9% at June 30. Portfolio value increased to $2.1 billion based on independent valuations as at Sept 30, up 3.0% compared to a year ago.

Frasers Commercial Asset Management says the divestment of 55 Market Street to an unrelated third party for a sale consideration of $216.8 million was completed on Aug 31.

Arising from the divestment, FCOT recognised an estimated net gain of $75.7 million over the property’s book value of $139.9 million.

The proceeds from the divestment of 55 Market Street were used to repay $197 million of borrowings in September, which reduced aggregate leverage to 28.3% as at Sept 30, from 35.4% as at June 30.

Jack Lam, CEO of the manager, also says the revamp of Alexandra Technopark is nearing completion and has already garnered very encouraging feedback from tenants and other stakeholders.

“Likewise, we eagerly look forward to completing the rejuvenation of the retail podium at China Square Central in the later part of 2019,” says Lam.

Year to date, units in FCOT are down 6% to close at $1.41 on Thursday.