Frasers Logistics & Commercial Trust H2 DPU drops 11.1% to S$0.0295

[SINGAPORE] The manager of Frasers Logistics & Commercial Trust (FLCT) on Friday (Nov 7) posted a distribution per unit (DPU) of S$0.0295 for the second half of FY2025 ended September. It was down 11.1 per cent from S$0.0332 in the previous corresponding period.

This was in line with capital DPU being steadily reduced to S$0.0026 in H2, and consistent with the approach by the real estate investment trust (Reit) to preserve debt headroom for growth while supporting near-term distribution stability, said the manager.

Revenue for H2 rose 3.7 per cent to about S$239.2 million, from S$230.6 million for the same period a year earlier.

Net property income (NPI) increased 5.7 per cent to S$172.4 million, from S$163.1 million previously.

Adjusted NPI – which excludes straight-lining adjustments for rental income and adds lease payments of right-of-use assets – stood at S$164.9 million, up 2.2 per cent from S$161.3 million in the previous corresponding period.

The year-on-year increases were mainly due to contributions from the acquisition of 2 Tuas South Link 1 in November 2024, and improved overall contributions from its UK business parks and the Maastricht property in the Netherlands, which achieved practical completion in October 2024.

Distributable income decreased 10.6 per cent to S$111.7 million for the period, from S$124.9 million in H2 FY2024.

As at Sep 30, aggregate leverage stood at 35.7 per cent, with an interest coverage ratio of 4.3 times.

The overall portfolio occupancy rate improved to 95.1 per cent, and the weighted average lease expiry stood at 4.8 years.

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The manager said it will continue to optimise returns from its commercial assets through proactive asset management and competitive marketing initiatives.

“While there are signs of potential easing in monetary policy, we continue to maintain a prudent capital management approach and employ appropriate hedging strategies to mitigate volatility arising from foreign exchange and interest rate risks,” it said.

It added that despite the anticipated rise in supply in certain markets, FLCT’s portfolio of logistics and industrial assets is well positioned, benefiting from “sustained demand for quality space”.

Units of FLCT closed Thursday 1.6 per cent or S$0.015 lower at S$0.955.