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FLT's Q1 DPU falls 1.1% as Australian dollar weakens against Sing dollar

FRASERS Logistics & Industrial Trust (FLT), which derives its income mainly from Australian industrial properties, posted on Thursday a 1.1 per cent fall in distribution per unit (DPU) for its fiscal first quarter, reflecting foreign exchange translation changes as the Australian dollar hit multi-year lows against the Singapore dollar in the quarter.

The trust said DPU for the three months ended Dec 31, 2018 stood at 1.78 Singapore cents, down from 1.80 Singapore cents the same period a year ago, reflecting a foreign exchange hedge taken by the trust. FLT said its weighted average hedged rate for the first quarter of fiscal stood at one Australian dollar against 98.2 Singapore cents. In the same period a year ago, the weighted average hedged rate stood at A$1 against S$1.0583.

As a comparison, its quarterly DPU taken in Australian dollars stood at 1.81 Australian cents, up 6.5 per cent from 1.70 Australian cents in the same period a year ago. FLT derives income from industrial and logistics sectors in Australia and Europe. Its portfolio in Australia consists of 61 properties spread across five states in Australia. 

Distributable income attributable to unitholders of the trust rose 16.3 per cent in its fiscal first quarter to A$29.7 million (S$28.7 million), due to contributions from various property acquisitions.

sentifi.com

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FLT's DPU in fiscal 2019's first quarter is calculated based on 83.1 per cent of management fees to be taken up in the form of units. The higher number of units in issue compared to the year-ago period was also due to the placement and the preferential offering units and the manager’s acquisition fees related to the acquisition in Europe in fiscal 2018.

Units of FLT closed on Thursday at S$1.08, up one Singapore cent.