Covid-19 impact expected to be limited for FY2021: FLCT

THE impact of the Covid-19 pandemic on the distributable income of Frasers Logistics and Commercial Trust (FLCT) is about S$1.1 million for the nine months ended June 30, mainly due to rental waivers and allowance for doubtful receivables attributable to the Covid-19 pandemic, the manager said in a business update on Wednesday. This figure is down from the S$1.2 million projected for H1 ended March.

The manager of FLCT said it is well-positioned to face the current challenging global environment thanks to its resilient portfolio, strong balance sheet and financial flexibility.

FLCT is also expected to benefit from structural trends driven by the growth of e-commerce activities and the adoption of hub-and-spoke models, which will drive demand for logistics and suburban office spaces respectively, said the manager. And although the retail segment of the commercial portfolio is challenged by the Covid-19 pandemic, it accounts for just 1.6 per cent of FLCT's overall income.

The manager of Reit said that it will continue to monitor the situation closely, support tenants and exercise prudence.

As at June 30, FLCT's portfolio is valued at S$6.84 billion, comprising 103 properties across Singapore, the United Kingdom, Australia, Germany and the Netherlands. Occupancy rate came in at 96.3 per cent while the weighted average lease expiry (Wale) stood at 4.9 years.

For the third quarter ended June 30, some 74,865 square metres of leasing was completed, representing 2.8 per cent of total lettable area. Portfolio rental reversion rose by 0.8 per cent.

On the acquisition front, FLCT had acquired a S$564.2 million portfolio of six European properties and raised gross proceeds of about S$335.8 million through a private placement.

Some S$540 million had been refinanced in the year to date and it had in July priced S$150 million of its maiden 2.18 per cent sustainability notes due 2028.

Units of FLCT ended Wednesday S$1.52, down S$0.01 or 0.7 per cent.