Frasers Commercial Trust’s profits jump 16.7% to $28.8m in Q2

Thanks to bigger contributions and smaller expenses.

Higher share results coupled with lower costs boosted Fraser Commercial Trust’s (FCOT) net property income to $28.8m in 2QFY16, reflecting a 16.7% YoY climb.

According to a report by OCBC, FCOT’s revenue jumped 12% YoY to $39m, while DPU inched up 2.9% to 2.45 S cents.

The boosts in Q2 results is largely thanks to the completion of the acquisition of 357 Collins Street on 18 August last as well as increased income contribution from Alexandra Technopark (ATP). In addition, FCOT enjoyed reduced expenses for repair, maintenance and painting at Caroline Chisholm Centre.

These boons were partially offset, though, by raised finance costs and an enlarged unit base.

For 1HFY16, FCOT’s revenue leaped 11.9% to $78.6m, and DPU edged up 2.5% to 4.96 S cents.

Frasers Commercial Trust (FCOT) reported its 2QFY16 results this morning which met our expectations. Gross revenue jumped 12.0% YoY to S$39.0m, while DPU increased 2.9% to 2.45 S cents.

FCOT’s occupancy was also relatively stable at 92.6%, though this marks a marginal dip of 0.3 ppt QoQ.

Meanwhile, management clinched positive rental reversions across its Singapore assets. FCOT posted rental uplifts of 2.4%, 5.4% and 5.3% from China Square Central, 55 Market Street and ATP, respectively.