FRASERS Logistics & Commercial Trust (FLCT) leased 128,000 sq m of space across its portfolio in the first quarter ended Dec 31, with a portfolio occupancy rate of 95.8 per cent.

The leased space includes the 62,000 sq m lease at the newly completed Ellesmere Port in North West England in the UK, FLCT said in a business update on Tuesday (Jan 30).

For Q1, FLCT recorded positive rental reversions of 11.6 per cent on an incoming versus outgoing basis, and 18.2 per cent on an average versus average basis. The “positive leasing momentum” has reduced FY2024 expiries from 8.7 per cent as at Sep 30, 2023, to 7 per cent as at Dec 31, it added.

FLCT has 100 logistics and industrial properties – which are fully occupied as at Dec 31, 2023 – and eight commercial properties with an 89.4 per cent occupancy rate. Its recent projects include the Maastricht Logistics Development in the Netherlands, where construction commenced in December 2023 and is targeted to finish in H1 FY2025.

In terms of capital management, FLCT said that facilities are already in place or available for more than half of the debt maturing in FY2024. It has aggregate leverage of 30.7 per cent, with an interest coverage ratio of 6.2 times.

Looking ahead, FLCT sees growing demand for logistics facilities. “Global e-commerce penetration is forecast to grow in the next three years, driving demand for quality warehousing,” it said in the business update.

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Demand is also bolstered by near-shoring and re-shoring activities, as global supply chains are “reconfigured to prioritise resilience over cost”, it added.

That said, business uncertainties include a weak global economic outlook, volatility in the financial markets and geopolitical tensions.

FLCT ended Tuesday at S$1.08, up by S$0.01 or 0.9 per cent.