Frasers Logistics & Commercial Trust (FLCT) has reported a distribution per unit (DPU) of 2.95 cents, 11.1% lower y-o-y for the 2HFY2025. This brings the trust’s full year DPU to 5.95 cents, 12.5% lower y-o-y.
Distributable income for the six months ended Sept 30 fell by 10.6% y-o-y to $111.7 million due to higher finance costs and tax expense. This was partly offset by 96% of management fees payable in units compared to 0% in the 2HFY2024.
Similarly, distributable income for the full year fell by 12.1% y-o-y to $224.7 million due to higher finance costs and tax expense, but offset by 69.8% of FY2025’s management fees payable in units, compared to 49.7% in FY2024.
In 2HFY2025, revenue rose by 3.7% y-o-y to $239.2 million while adjusted net property income (NPI) was up by 2.2% y-o-y to $164.9 million. The growths were attributed to contributions from the acquisition of 2 Tuas South Link 1 in November 2024, better contributions from the UK business parks and contributions from the Maastricht property in the Netherlands. The Netherlands property achieved practical completion in October 2024.
That said, the contributions were offset by higher vacancies in Alexandra Technopark, a lower average Australian dollar to Singapore dollar (AUD/SGD) exchange rate in 2HFY2025 compared to 2HFY2024 and higher non-recoverable land taxes for Victoria and Queensland in August from January to July 2024.
FY2025 revenue was up by 5.6% y-o-y to $471.5 million while adjusted NPI was up by 1.9% y-o-y to $326.1 million due to the same factors as the half-year growths. This also includes full-year contributions from the acquisition of interests in four German logistics properties in March 2024.
As at Sept 30, FLCT’s portfolio occupancy rate stood at 95.1%, up from the rate of 93.9% as at March 31. The trust’s weighted average lease expiry (WALE) ended Sept 30 stood at 4.8 years, up from 4.6 years since March.
Portfolio reversion stood at a positive 29.5%.
Aggregate leverage as at Sept 30 stood at 35.7% while FLCT’s interest coverage ratio stood at 4.3 times.
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The ex-distribution date for the second half DPU is on Nov 18; the record date falls on Nov 19. Unitholders will receive their DPUs on Dec 23.
As at 9.47am, units in FLCT are trading flat at 95.5 cents.
