Frasers Logistics & Commercial Trust (FLCT) BUOU has reported a distribution per unit (DPU) of 3.52 cents for the 1HFY2023 ended March 31, 8.6% lower y-o-y.
The lower DPU came on the back of lower revenue and adjusted net property income (NPI) during the six-month period.
Revenue fell by 11.7% y-o-y to $208.0 million while NPI, which excludes straight-lining adjustments for rental income and adding lease payments of right-of-use assets, fell by 13.4% y-o-y to $155.9 million.
The y-o-y decreases were mainly due to the absence of contribution from Cross Street Exchange as well as weaker exchange rates from the foreign currencies against the Singapore dollar (SGD). Cross Street Exchange was divested on March 31.
Correspondingly, distributable income fell by 8.0% y-o-y to $130.8 million.
During the quarter, FLCT executed 14 leasing transactions representing a lettable area of around 84,500 sqm. The average rental reversion for the period was at a positive 3.6% on an incoming rent versus outgoing rent basis and a positive 23.2% on an average rent versus average rent basis.
See also: IHH Healthcare’s 3QFY2024 patmi remains flat at RM534 mil
The transactions bring the trust’s total leasing activity in the 1HFY2023 to around 324,000 sqm or around 12.2% of FLCT’s total portfolio lettable area.
As at March 31, FLCT reported an occupancy rate of 95.9% with a weighted average lease expiry (WALE) of 4.5 years.
As at the same period, FLCT’s net asset value (NAV) was $1.27, down from $1.30 as at Sept 30, 2022.
See also: Marco Polo Marine reports lower 2HFY2024 earnings of $10.7 mil, down 42% y-o-y
FLCT’s aggregate leverage stood at 27.8% as at March 31 with 76.2% of its total borrowings at fixed interest rates.
“The continued strength of the SGD has had an adverse translation impact on our foreign-sourced income. However, FLCT was able to demonstrate operational resilience, underpinned by the strength of our high-quality property portfolio,” says Robert Wallace, CEO of the REIT manager.
"Nevertheless, management remains optimistic about the future. We are committed to maintaining a high-quality logistics & industrial-focused property portfolio that is strategically located in developed countries, which coupled with our healthy balance sheet, gives us confidence that FLCT can weather any uncertainties and capture future opportunities,” he adds. “We are confident that with our sound business fundamentals and portfolio management capabilities, FLCT will continue to thrive and ensure our commitment to delivering long-term value for all FLCT stakeholders."
As at 11.10am, units in FLCT are trading 1 cent higher or 0.75% up at $1.34.
