Frasers Logistics & Commercial Trust (FLCT) (SGX:BUOU
) has reported a distribution per unit (DPU) of 2.95 cents for 1HFY2026 ended March 31, down 1.7% y-o-y.
Revenue and adjusted net property income (NPI) increased by 2.8% and 3.6% y-o-y to $238.9 million and $167.0 million. The increases were attributed to positive rental reversion and annual increment from rent review for both Australia and European Union logistics & industrial segments and full contribution from 2 Tuas South Link 1.
However, these were partially offset by the divestment of 357 Collins Street last September, higher vacancies in Alexandra TechnoPark (ATP) and Farnborough Business Park (FBP), and higher non-recoverable land taxes for Victoria and Queensland, Australia.
Total distributable income for 1HFY2026 was down 1.0% y-o-y to $111.9 million and 75% of 1HFY2026’s management fees were taken in units.
On the portfolio front, FLCT saw healthy leasing momentum with approximately 155,967 square metres leased across 14 leasing transactions. Portfolio average rental reversion was positive at 8.8% on an incoming rent versus outgoing rent basis and average rent of new lease compared to the average rent of the preceding lease was positive at 22.0%.
In particular, its logistics & industrial portfolio saw positive rental reversions of 9.4% and 23.2% on an incoming rent vs. outgoing rent basis and on an average rent vs. average rent basis respectively.
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Portfolio occupancy rate was at 96.1% as at March 31, with logistics & industrial portfolio and commercial portfolio at 99.8% and 88.4% respectively. Portfolio weighted average lease expiry (WALE) is 4.9 years.
FLCT’s aggregate leverage remained at 33.7% with weighted average debt maturity of 2.8 years and interest coverage ratio of 4.4 times. Cost of borrowing stood at 3.2% per annum on a trailing 12-month basis and 75% of its borrowings are on fixed rate.
Portfolio valuation went up by 1.6% to $7.1 billion as at March 31, compared to $7 billion as at Sept 30, 2025. The higher valuation was due to forex gain from strong AUD, partially offset by weaker EUR and GBP against SGD. Net asset value per unit was $1.12 as at March 31.
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“Amid this backdrop, our logistics and industrials portfolio showed strength by delivering robust rental reversions and maintaining its position as a crucial driver of FLCT’s overall performance. Our acquisition in the Netherlands in April reflects our ability to act on high-quality opportunities with financial discipline and underscores our confidence in FLCT's balance sheet strength to support continued, measured growth,” says Anthea Lee, CEO of the manager.
As at 9.45am, Units in FLCT are trading 2.5 cents higher, or 2.58% up at 99.5 cents.
