Frasers Logistics & Commercial Trust has reported 2HFY2024 ended Sept distribution per unit of 3.32 cents, down 5.7% y-o-y. This brings full-year DPU to 6.8 cents, down 3.4% over the preceding FY2023. The 2HFY2024 distribution will be paid on Dec 17.

 

FLCT increased its full-year revenue by 6.2% y-o-y to $446.7 million led by contributions from recently acquired assets in UK and Germany.

 

However,   the gain was offset by higher financing costs. Additional taxes in Australia further crimped distributable income to $255.5 million for FY2024, down 2.6% from FY2023.

 

In FY2024, FLCT managed to achieve an average rental reversion of an increase of 12.8% on an incoming rent vs outgoing rent basis, and an increase of 23.6% for the average rent of the new lease as compared to the average rent of the preceding lease.

 

As at Sept 30, it maintained a high portfolio occupancy of 94.5% and a weighted average lease expiry of 4.2 years. Its total portfolio of 112 properties across five countries was valued at $6.8 billion, with a net asset value per unit of $1.13.

 

Anthea Lee, CEO of the FLCT' s manager calls FY2024 a year where it demonstrated resilience in the face of ongoing challenges. 

 

" Our core logistics and industrial portfolio continued to show strength and these assets consistently outperformed, delivering robust rental reversions and maintaining their position as a key driver of FLCT&rsquo s overall performance.

 

" Looking ahead, we remain committed to increasing FLCT&rsquo s logistics and industrial exposure, while maintaining prudent capital management," says Lee, referring to FLCT' s recent acquisitions in Germany and the forward funded projects, as well as the acquisition of a prime logistics property in Singapore announced in October 2024.

 

" FLCT&rsquo s low aggregate leverage also positions us well to capitalise on strategic growth opportunities while maintaining financial flexibility," she adds.

 

As at Sept 30, FLCT&rsquo s aggregate leverage was 33.0%, with a weighted average debt maturity of 2.4 years and an interest coverage ratio of 5.0 times. 

 

Nearly three quarters, or 73.3% of its borrowings are at a fixed rate as at Sept 30 and its cost of borrowings for FY2024 was 2.8% per annum.

 

In its outlook commentary, FLCT observes global low economic growth and an evolving interest rate environment. 

 

" While there are signs of potential easing in monetary policy, the REIT Manager continues to maintain a prudent capital management approach and employ appropriate hedging strategies to mitigate forex and interest rate risks," says FLCT.

 

As at Mar 31, the Caroline Chisholm Centre accounted for 3.2% of FLCT&rsquo s portfolio value

 

THE manager of Frasers Logistics and Commercial Trust : BUOU -1.74% (FLCT) on Thursday (Oct 10) said the trust has renewed the lease at its Grade A office building in Canberra, Australia, for 12 years beginning Jul 5, 2025.

 

Its tenant, the Commonwealth Government of Australia, will take up 100 per cent of the 99-year leasehold office complex&rsquo s lettable area. 

 

The five-storey Caroline Chisholm Centre is situated in the core of Tuggeranong Town Centre in Canberra with a net lettable area of 40,244 square metres. It has been wholly leased to the Commonwealth Government of Australia since July 2007.

 

As at Mar 31, the building accounted for 3.2 per cent of FLCT&rsquo s portfolio value. 

 

According to the trust&rsquo s latest half-year briefing, the Caroline Chisholm Centre is valued at around S$216.6 million, or 11 per cent of the trust&rsquo s commercial portfolio. It has a weighted average lease expiry of 1.3 years. 

Its top 10 tenants account for 23% of portfolio gross rental income

FRASERS Logistics & Commercial Trust : BUOU +0.51% (FLCT) on Wednesday (Jul 31) reported that its portfolio occupancy rose to 95 per cent as at Jun 30, up 0.7 percentage point from 94.3 per cent as at Mar 31.

 

The improvement comes as the real estate investment trust (Reit) secured new leases at Alexandra Technopark in Singapore and Farnborough Business Park in the United Kingdom.

 

The Reit also leased around 90,000 square metres (sq m) in the third quarter of FY2024, the manager said in a business update. This brings the total space leased year-to-date to 233,000 sq m.

 

The manager noted that the Reit had positive portfolio rental reversions of 14.8 per cent on an incoming versus outgoing basis, and 25.1 per cent on an average versus average basis.

 

This was across its portfolio, which spans 112 commercial, as well as logistics and industrial properties in Singapore, Australia, Germany, the Netherlands and UK.

 

FLCT has a &ldquo well-spread lease expiry profile&rdquo and is focused on proactive lease renewals and securing new leases, the manager noted. It has 16 leases expiring in the fourth quarter of FY2024, representing 2 per cent of gross rental income.

 

Its top 10 tenants account for 23 per cent of portfolio gross rental income. FLCT has secured a new lease for one of two sites occupied by manufacturing company Techtronic, unlocking &ldquo positive rental reversion with no downtime&rdquo , said the manager.

 

Its total portfolio is valued at S$6.9 billion, excluding one property under development in Europe and right-of-use assets.

 

FLCT&rsquo s manager also noted that it has a healthy aggregate leverage of 33.2 per cent and interest coverage ratio of 6.7 times, as well as significant debt headroom of S$793 million.

 

Maintaining balance sheet strengths as S-Reits average 39% gearing

 

Looking ahead, the manager said there is sustained demand for &ldquo quality and core properties&rdquo , with occupiers preferring locations that are strategic to business operations.