portfolio gross revenue decreased by 7.0% year-on-year, mainly due to lower occupancy rate for Alexandra Technopark, divestment of 55 Market Street on 31 August 2018 and effects of the average weaker Australia Dollar, partially offset by higher rent revenue for China Square Central. The corresponding
NPI decreased 3.0% year-on-year, mainly due to the lower gross revenue, higher property tax expense for Alexandra Technopark and higher amortisation of lease incentives for Central Park and 357 Collins Street, partially offset by lower maintenance expenses for the Singapore properties and Caroline Chisholm Centre and lower utilities expense for Alexandra Technopark.
The NPI figures above are before contribution from the 50.0% indirect interest in Farnborough Business Park (“FBP”) in the United Kingdom (“UK”), which is held as a joint venture and equity-accounted. The 50.0% interest in FBP was acquired on 29 January 2018 and the attributable NPI for 3QFY19 was S$2.0 million2 . Including the attributable NPI of FBP, portfolio NPI for 3QFY19 would be S$21.8 million.
While there are currently uncertainties with regard to the eventual outcome and impact of Brexit, the Manager remains confident on the long-term prospects of the UK market. The Manager expects the performance of FBP to remain stable given the property’s solid fundamentals, which include a high-quality tenant base, healthy occupancy rate of 97.4% and long WALE of 7.1 years3 (with 90% of current leases by income expiring beyond FY22), as at 30 June 2019.
The portfolio average committed occupancy rate as at 30 June 2019 was 94.1%4 , a 12.6 percentage-point improvement from 81.5% at the end of the previous quarter. Occupancy rates for the Singapore portfolio, the Australia portfolio and FBP as at 30 June 2019 were 93.9%5 , 93.5%5 and 97.4%6 , respectively. The Singapore portfolio saw a significant uplift in committed occupancy by 26.4 percentage-points from the end of the previous quarter. This was mainly due to committed occupancy at Alexandra Technopark rising to 93.7% from 59.2%, on the back of lease commitments secured from Google Asia Pacific Pte. Ltd. (for around 344,100 sq ft of space)7 and several other tenants during the quarter.
I think result doesn't look good with NPI down 3% to $19.7m. Even though the occupancy rate has increased from 81.5% to 94.1%.
DPU is flat /maintain at 2.4 cents .
Yearly Dividend of 9.6 cents, Yield is about 5.8%.
P/B of 1.05x
I think is good to be cautious!
Not a call to buy or sell.
Pls dyodd.
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