FLCT raises H1 DPU by 1.3% to S$0.0385 on contributions from FY2021 acquisitions

FRASERS Logistics and Commercial Trust : BUOU 0% (FLCT)’s distribution per unit (DPU) rose by 1.3 per cent to S$0.0385 for its first half ended March 31, 2022, from S$0.038 a year ago.

Gross revenue was up 1.7 per cent to S$235.7 million for the half-year period, from S$231.7 million a year ago.

The increase was mainly due to a full 6 months of income contribution from its acquisitions made in the financial year ended Sep 30, 2021, as well as an early surrender fee received in H1 FY2022, the manager of the real estate investment trust (Reit) said on Friday (May 6).

FLCT also recorded a S$169.7 million gain on the divestment of investment properties in the half year, in relation to its divestment of mixed-use commercial property Cross Street Exchange in Singapore.

However, these were partially offset by divestments and the effects of lower exchange rates, the manager said.

Net property income (NPI) grew 3.6 per cent on the year to S$180.1 million for the half year, from S$173.9 million.

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Distributable income rose 9 per cent on year to S$142.1 million, from S$130.4 million.

The distribution will be paid out on Jun 17, after the record date on May 17.

Meanwhile, the occupancy rate for the Reit's portfolio stood at 96.1 per cent as at Mar 31, with a weighted average lease expiry (WALE) of 4.6 years.

During the half-year period, the Reit entered into an acquisition of a freehold warehouse facility in Worcester, UK for £28.3 million (S$48.5 million), and started development on a £23.3 million logistics and industrial development at Blythe Valley Park, UK.

It also divested a leasehold property in Port Melbourne, Australia, for A$42.5 million (S$41.7 million), and its remaining leasehold interest in Cross Street Exchange for S$810.8 million.

The manager said it remains focused on managing financial implications from Covid-19, foreign exchange risks, and ongoing macroeconomic developments, as well as capital and liquidity management.

“FLCT’s resilient portfolio, strong balance sheet and financial flexibility well positions the Reit to face the current challenging global environment,” it said.

Units of FLCT closed S$0.02 or 1.4 per cent higher at S$1.45 on Thursday.