Frasers Commercial Trust heading for an accelerated growth phase

Growth initiatives about to bear fruit.

According to OCBC, Frasers Commercial Trust "has essentially locked in robust growth for FY14 with lower interest costs and the redemption of its 321.9m Series A Convertible Perpetual Preferred Units (CPPUs) this year."

"Apart from being buoyed by CPPU redemption, we also expect FCOT to gain from its growth initiatives embarked over the past year," OCBC added.

The research firm cited the completion of the Precinct Master Plan and asset enhancement works for the office tower at China Square Central, which will likely result in improved occupancy and higher secured rentals going forward.

FCOT has also successfully completed the renewal of 511,000 sqft of the underlying leases at Alexandra Technopark ahead of expiry in FY14-15.

"This not only allows FCOT to achieve positive rental reversion of 17.4% at the property but also to improve its lease expiry profile," said OCBC.