Frasers Logistics & Commercial Trust H1 DPU up 9.5% to 3.8 S cents post merger
FRASERS Logistics & Commercial Trust (FLCT) on Thursday posted a 9.5 per cent rise in distribution per unit (DPU) to 3.8 Singapore cents for the first half ended March 31, from 3.47 cents for the comparative period the year before.
This came amid record revenue for the period, boosted by contributions from Frasers Logistics Trust's merger with Frasers Commercial Trust in April 2020.
For the six months ended March 31, revenue nearly doubled to S$231.7 million, from S$118.7 million the year before. Meanwhile, adjusted net property income (NPI) grew 79.3 per cent on the year to S$173.9 million for the half year, from S$97 million.
The higher revenue and adjusted NPI also benefited from acquisitions made in the financial year ended Sept 30, 2020, as well as higher exchange rates.
The gains were partially offset by the effect of divestments made in H1 2021, as well as rental waivers and allowance for doubtful receivables of S$1.2 million attributed to the Covid-19 pandemic, the manager said in a bourse filing.
FLCT divested its remaining half stake in 99 Sandstone Place in November 2020, and a portfolio of three industrial properties in South Australia in March 2021.
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Meanwhile, adjusted net property income grew 79.3 per cent on the year to S$173.9 million for the half year, from S$97 million.
Distributable income climbed 71.1 per cent year on year to S$130.4 million, from S$76.2 million. The distribution will be paid out on June 18, after the May 17 record date.
In H1 2021, FLCT executed 33 leasing transactions representing a lettable area of 126,133 square metres (sq m). Occupancy rate was 96.8 per cent, while its weighted average lease expiry was 4.7 years
FLCT's aggregate leverage stood at 35.3 per cent as at March 31, 2021. Total borrowings were S$2.32 billion, 70.6 per cent of which were at fixed interest rates.
Although the situation remains dynamic, there has been no material impact to the FLCT portfolio to date with only the retail segment of the commercial portfolio being more challenged, the manager said. The retail segment represents just 1.8 per cent of FLCT's total portfolio income, it added.
FLCT units closed flat at S$1.47 on Thursday, after the news.
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