Thanks to raised contributions from Alexandra Technopark.
Frasers Commercial Trust (FCOT)’s net property income (NPI) in 1QFY16 surged 15.5% YoY to $29.4m, frm FY15’s $25.4m, according to a report by OCBC. The climb is on back of increased income from Alexandra Technopark (ATP), as well as a full quarter contribution from 357 Collins Street which was acquired on 18 Aug 2015, but partially weighed down by revenue from other assets.
Meanwhile, the company's lower YoY gross revenue from China Square Central (CSC) and 55 Market Street was largely attributed to tapered occupancy rates. OCBC notes that this is likely a reflection of the challenging leasing environment, which led to the non-renewals of some leases. Occupancy at Central Park (CP) slipped from 88.6% in 4QFY15 to 80.3% because of weaker Perth demand, although fortunately, CP only has one lease expiring for the rest of the financial year.
Overall, FCOT’s portfolio occupancy inched back from 96.6% in 1QFY15 and 95.4% in 4QFY15 to 92.9% this quarter. The company also saw positive rental reversions of 10.3% for CSC and 5% for ATP.
DPU also inched up, though at a more sluggish pace of 2% to 2.51 cents due to raised finance costs and enlarged unit base.
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