(See also: Frasers Commercial Trust posts 2.4% rise in 2Q DPU to 2.51 cents)
The management of FCOT notably achieved positive portfolio rental reversions which were mainly driven by Alexandra Technopark (ATP), while 55 Market Street also saw positive rental uplifts.
“Looking ahead, we believe there would be some pressure on FCOT’s rental reversions for its Singapore portfolio,” notes lead analyst Andy Wong in a Monday report.
This is due to a lack of concrete updates on the leases for the two Hewlett-Packard (HP) entities which are expiring in Sep/Nov this year, he explains, although the trust’s management continues to engage these tenants actively.
Nonetheless, Wong highlights an improved outlook for Perth for the Australia portfolio with an increase in enquiries seen by FCOT, while Melbourne’s CBD office market is expected to remain robust.
As at 10:56am, units of FCOT are trading 1 cent higher at $1.34.
