FLCT posts 8.6% lower H1 DPU of S$0.0352 on foreign exchange weakness

FRASERS Logistics and Commercial Trust (FLCT) posted an 8.6 per cent decline in distribution per unit (DPU) to S$0.0352 for its first half ended Mar 31, from S$0.0385 the year before.

Revenue fell by 11.7 per cent to S$208 million for the half year, from S$235.7 million previously, said FLCT’s manager on Thursday (May 4).

It attributed the lower DPU to foreign exchange weakness against the Singapore dollar, as overseas assets in Australia, Europe and the UK represented 90.2 per cent of FLCT’s portfolio value.

The lower topline figures were also due to the divestment of Cross Street Exchange in Singapore in 2022, and the absence of an early surrender fee from Farnborough Business Park in the UK in H1 FY2023.

Net property income (NPI) fell to S$157.9 million for H1, representing a 14 per cent decline from the year before. Excluding straight lining adjustments for rental income and adding lease payments of right-of-use assets, adjusted NPI stood at S$155.9 million for the period.

Distributable income fell 8 per cent on year to S$130.8 million, from S$142.1 million previously. Capital distribution for H1 includes the distribution of S$4.3 million in divestment gains.

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The distribution will be paid on Jun 15, after the record date of May 12.

FLCT’s occupancy rate stood at 95.9 per cent as at Mar 31, with a weighted average lease expiry of 4.5 years.

During the half-year period, it completed the development of two logistic and industrial properties in Blythe Valley Park and Worcester.

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FLCT maintained a healthy aggregate leverage at 27.8 per cent for H1, although finance costs remained elevated due to higher interest costs on borrowing.

The manager remained optimistic about its logistics and industrial-focused portfolio, as well as its healthy balance sheet.

Units of FLCT ended flat at S$1.33 on Wednesday.