F&N's commercial property revenue jumped 19%

Thanks to stronger rents.

According to CIMB, F&N's development PBIT rose 8% yoy, slower than expected due to timing issues. Its OCP projects (c.70% sold) in Sydney, Australia will becompleting in stages in 3Q13-3Q14.

OCP West was recently completed but only saw 180 settlements booked for 3Q13. CIMB said they expect property earnings to catch up in the next 12 months, with unbooked presales robust at S$3.3bn.

"Commercial property revenue rose 19% yoy, driven by stronger rents and occupancy from its REITs and non-REIT portfolio, and stronger room revenue (+141% yoy) from Fraser Hospitality with contributions from newly opened properties in the UK, Australia and Singapore," CIMB said.