Frasers Commercial Trust (FCOT) saw a 2.4 percent year-on-year decline in net property income to S$22.95 million for the first quarter ended 31 December, 2010.
The trust’s gross revenue also slid 2.3 percent to S$28.98 million in Q1.
The decline was due to “lower contribution from Cosmo Plaza as a result of the expiry of a significant tenancy in August 2010”, said Frasers Centrepoint Asset Management (Commercial) Ltd, which manages the trust.
”If the financial results for Cosmo Plaza were to be excluded, the net property income for the financial quarter would be comparable to that of last year on the same basis,” it added.
The trust had completed the sale of Cosmo Plaza located in Osaka, Japan on 18 January.
“The divestment of Cosmo Plaza would improve the overall quality of the portfolio and create additional debt headroom for FCOT to enlarge its existing portfolio via future acquisitions,” said Low Chee Wah, CEO of Frasers Centrepoint Asset Management.
Despite the drop in net property income, the trust saw a 4.1 percent increase in total distributable income to S$12.64 million.
The increase was attributed to “an absence of loss from realisation of forward contract incurred in the prior year”.
Distribution per unit (DPU) for Q1 was up 4.2 percent to 0.25 cents.