Distributable Income Grows at Frasers Commercial Trust

frasers commercial trust Frasers Commercial Trust (SGX: ND8U) just released its 3rd Quarter 2013 (3Q 2013) report covering  1 April to 30 June 2013. Gross revenue for 3Q 2013 went down by 16.1% to $30 million from $35.7 million a year ago mostly due to divestments of KeyPoint and the Japanese properties.

Net property income for 3Q 2013 declined 13.4% to S$23.1 million from S$26.6 million in the previous year, also due to the divestments. Excluding the divested properties, NPI would have increased by 3.7%.

Distribution per unit (DPU) for 3Q 2013 was 2.19 cents, an increase of 28.8% year-on-year as a result of the higher distributable income. If annualised, the DPU becomes 8.76 cents. At the back of today’s close at $1.34, the distribution yield is at 6.54%.

The gearing stands at 39.5%. The average borrowing cost is at 2.8%. The net asset value is at $1.45.

The average occupancy of the trust stands at 98.1%. This was boosted by healthy portfolio occupancy rates in Singapore and Australia, at 97.4% and 99.5% respectively.

Mr Low Chee Wah, Chief Executive Officer of the Frasers Centrepoint Asset Management (Commercial) Limited, said “The Manager is pleased to announce that the Trust has achieved a strong 28.8% increase in distribution per unit of 2.19 cents year-on-year for 3QFY13. The higher income from the additional 50% interest in Caroline Chisholm Centre and higher rental rates achieved for the properties, coupled with the lower interest costs, have contributed to the better results. In addition, the redemption of 319.7 million Series A Convertible Perpetual Preferred Units (“CPPU”) in January 2013 and April 2013 also led to the increase in DPU.”

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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice.  Motley Fool Singapore contributor Sudhan P doesn’t own shares in any companies mentioned.