FLCT logs positive rental reversions in Q3, led by logistics and industrial segment
Manager sees continued opportunities in the logistics and industrial sector, underpinned by resilient structural demand
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[SINGAPORE] The manager of Frasers Logistics & Commercial Trust (FLCT) recorded positive rental reversions of 8.2 per cent on an incoming versus outgoing basis, in the third quarter ended Jun 30.
On an average versus average basis, the trust booked positive rental reversions of 17.9 per cent, said it said in a business update on Thursday (Jul 30).
The overall positive reversions were driven mainly by its logistics and industrial (L&I) segment, which logged an 11.9 per cent increase on an incoming versus outgoing basis, and 23.8 per cent on an average basis.
Meanwhile, the commercial segment saw negative rental reversions of 0.3 per cent on an incoming versus outgoing basis, but positive 4.5 per cent on an average basis.
For the first nine months of 2026, the trust’s overall portfolio reversion stood at 9.3 per cent on an incoming versus outgoing basis and 23.2 per cent on average.
In Q3, FLCT’s portfolio occupancy rate was 96.1 per cent. Its entire portfolio of 114 logistics and industrial, and commercial properties, has a portfolio value of S$7.1 billion. The weighted average lease expiry stood at 4.9 years overall; 4.7 years for logistics and industrial properties; and 5.2 years for commercial properties.
Its aggregate leverage rose to 35.4 per cent and average weighted debt maturity stood at three years. FLCT had a total gross borrowing of S$2.5 billion as at end-June. The manager noted that S$526 million of undrawn committed facilities are currently available to meet upcoming debt obligations of S$80 million due in Q4 FY2026.
FLCT’s acquisition of four freehold logistics properties – comprising two in Germany and another two in the Netherlands – for S$441.5 million is expected to increase its distribution per unit. The deal was approved by unitholders on Jul 15.
The purchase would allow FLCT to “deepen its presence in two of Europe’s most resilient and trade-oriented logistics markets, consistent with its strategy to scale its L&I portfolio”.
Looking ahead, FLCT sees continued opportunities in the L&I sector, underpinned by resilient structural demand and ongoing supply chain realignment. That said, business uncertainties include fluctuating energy prices and oil supply disruptions, sticky inflation and foreign exchange volatility.
FLCT said that it will continue to focus on high-specification properties across multiple developed markets, structuring leases to meet tenant requirements and incorporating inflation protection where possible.
The counter ended Thursday flat at S$1, before the announcement.
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