THE manager of Frasers Logistics & Commercial Trust (FLCT) on Wednesday (Nov 6) reported a distribution per unit (DPU) of S$0.0332 for the second half ended September, down 5.7 per cent from S$0.0352 in the corresponding period the year before.
This brings DPU for the full year to S$0.068, a 3.4 per cent decline from S$0.0704 previously.
Distributable income for H2 fell 5.1 per cent to S$124.9 million, from S$131.6 million the year prior.
On Wednesday, the real estate investment trust (Reit) manager attributed the declines mainly to higher property expenses and financing costs.
H2 revenue rose 8.4 per cent to S$230.6 million, from S$212.8 million the year before.
This was mainly due to contributions from the Ellesmere Port facility in the United Kingdom, which achieved practical completion in December 2023, and from the acquisition of interests in four German logistics properties in March 2024.
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These were partially offset by higher vacancies in Alexandra Technopark in Singapore, and 357 Collins Street in Melbourne, Australia.
Net property income (NPI) climbed 3.9 per cent in H2 to S$163.1 million, from S$157.1 million previously.
On an adjusted basis – excluding straight-lining adjustments for rental income and adding lease payments of right-of-use assets – the Reit manager said NPI for H2 would have been S$161.3 million, up 3.7 per cent from S$155.5 million previously.
Property operating expenses rose 21.1 per cent to S$67.5 million in H2, mainly due to higher non-recoverable land taxes in Australia.
Financing costs jumped 45.6 per cent to S$36.4 million, mainly due to an increase in interest rates and additional borrowings drawn for capital expenditure, fund-through developments and acquisitions.
As at Sep 30, FLCT’s portfolio occupancy stood at 94.5 per cent, with a weighted average lease expiry of 4.2 years.
For FY2024, the portfolio average rental reversion was 12.8 per cent on an incoming rent versus outgoing rent basis.
FLCT’s aggregate leverage stood at 33 per cent as at end-September, with a weighted average debt maturity of 2.4 years and interest coverage ratio of five times.
Some 73.3 per cent of its borrowings are at a fixed rate as at Sep 30, the Reit manager said.
“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’s overall performance,” said Anthea Lee, chief executive officer of the Reit manager.
Units of FLCT ended Tuesday S$0.01 or 0.9 per cent down at S$1.06.
