Frasers Commercial Trust NPI down 25% to $22.43m in Q2

It blamed lower occupancy in five properties, including China Square Central.

The results of Frasers Commercial Trust (FCOT) have gotten worse in the second quarter of 2018 as net property income (NPI) crashed 25% YoY from $30.02m to $22.43m. For the half year, NPI also fell 20% to $47.29m

According to its financial statement, lower NPI in was mainly due to the lower occupancy rate for China Square Central, Alexandra Technopark, Central Park, 55 Market Street, and 357 Collins Street. It also blamed the higher repair and maintenance works at Caroline Chisholm Centre, the average weaker Australian dollar on the income from Australian properties; and the absence of the one-off payment from a lease termination in Central Park which was received in Q2.

FCOT noted that NPI excludes the results of Farnborough Business Park which was equity accounted for as share of results of joint venture.

“The net change in fair value of investment properties in 2Q2018 and 2Q2017 was related to the adjustment of the changes in the carrying value of investment properties due to recognition of rental income on a straight-line basis in accordance with the Singapore Financial Reporting Standards and the increase in leasing fees capitalised, net of amortisation of leasing costs,” it added.

Distribution per unit (DPU) for the quarter fell 4% from 2.51 cents to 2.4 cents.