Frasers Logistics & Commercial Trust (FLCT) has reported a portfolio occupancy rate of 96.5% for the 3QFY2022 ended June, with its logistics and commercial portfolio at 100% occupancy and its commercial portfolio at 91.3% occupancy.
The REIT’s weighted average lease expiry (WALE) stood at 4.6 years based on gross rental income (GRI).
As at June 30, FLCT has 105 properties across five countries with a portfolio value of $6.5 billion.
As at June 30, FLCT’s aggregate leverage stood at 29.2%, down by 2.9 percentage points q-o-q.
In its outlook statement, the REIT sees volatile energy costs, inflationary pressures and rising interest rates to affect recovery and growth sentiments.
The REIT also sees the weakening of the AUD, EUR and GBP against the SGD, where it has properties in.
See also: IHH Healthcare’s 3QFY2024 patmi remains flat at RM534 mil
It adds that its properties in Europe remain unaffected by the Russo-Ukrainian conflict; its overall operating environment is expected to further improve with strong tenant activity observed on the back of countries adopting an endemic approach with Covid-19.
On sectoral trends, FLCT says it sees a future in e-commerce with global retail e-commerce penetration expected to grow at an average of 10.7% between 2022 and 2025, after a 19.6% surge in 2021.
Demand for warehouses will be supported due to supply chain security on the back of “just in case” strategies. Businesses will be expected to reduce their carbon emissions, translating to demand for buildings with strong sustainability credentials to assist occupiers in meeting their corporate targets.
See also: Marco Polo Marine reports lower 2HFY2024 earnings of $10.7 mil, down 42% y-o-y
Modern and, or flexible workspaces will be required on the back of post-pandemic hybrid work habits.
Finally, the logistics and industrial asset class remains broadly resilient with prime yields remaining low. FLCT is also expecting to see continued rental growth on the back of low vacancies, strong occupier demand and higher land and construction costs in all of its markets.
Units in FLCT closed 3 cents higher or 2.16% up at $1.42 on Aug 4.
