It was hit by higher property tax expense for Alexandra Technopark.
Frasers Commercial Trust’s (FCT) net property income (NPI) dipped 3% YoY to $19.75m in Q3 FY19 from 20.37m during the same period a year ago, an announcement revealed. Gross revenue fell 7% YoY to $30.22m from $32.49m during the same period a year ago.
The firm attributed the NPI decline to lower gross revenue, higher property tax expense for Alexandra Technopark and higher amortisation of lease incentives for Central Park and 357 Collins Street, partially offset by lower maintenance expenses for the Singapore properties and Caroline Chisholm Centre and lower utilities expense for Alexandra Technopark.
Meanwhile, the firm’s distribution to unitholders grew 2.5% YoY to $21.78m. Distribution per unit (DPU) was steady at $0.24.
The firm’s portfolio average committed occupancy rate as of end-June hit 94.1%, a 12.6 ppt improvement from 81.5% at the end of the previous quarter. Occupancy rates for the Singapore portfolio, the Australia portfolio and FBP were recorded at 93.9%, 93.5% and 97.4%, respectively.
FCT’s Singapore portfolio saw an improvement in committed occupancy by 26.4 ppt compared to the end of Q2, thanks to committed occupancy at Alexandra Technopark rising to 93.7% on the back of lease commitments secured from Google Asia Pacific and several other tenants during the quarter.
Since January, the firm has secured some 410,000 of lease commitments, including 387,000 sqft of new leases. Rents at $4.00-4.60 psf pm are generally above the average passing rent of slightly below $4 psf pm as at the end of 2018.
“We are also eagerly anticipating the completion of asset enhancement works at the retail podium of China Square Central in the near future, and look forward to delivering positive outcomes for that project as well,” Jack Lam, CEO of Frasers Commercial Asset Management, said.
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