Frasers Logistics & Commercial Trust leases 90,000 sq m in Q3, occupancy rises to 95%
Sign up now: Get ST's newsletters delivered to your inbox
FLCT's portfolio spans 112 commercial, logistics and industrial properties in Singapore, Australia, Germany, the Netherlands and the UK.
PHOTO: FLCT
Megan Cheah
SINGAPORE - Frasers Logistics & Commercial Trust (FLCT) on July 31 reported that its portfolio occupancy rose to 95 per cent as at June 30, up 0.7 percentage point from 94.3 per cent as at March 31.
The improvement comes as the real estate investment trust (Reit) secured new leases at Alexandra Technopark in Singapore and Farnborough Business Park in the United Kingdom.
The Reit also leased around 90,000 sq m in the third quarter of financial year 2024, the manager said in a business update. This brings the total space leased year-to-date to 233,000 sq m.
The manager noted that the Reit had positive portfolio rental reversions of 14.8 per cent on an incoming versus outgoing basis, and 25.1 per cent on an average versus average basis.
This was across its portfolio, which spans 112 commercial, logistics and industrial properties in Singapore, Australia, Germany, the Netherlands and United Kingdom.
FLCT has a “well-spread lease expiry profile” and is focused on proactive lease renewals and securing new leases, the manager said. It has 16 leases expiring in the fourth quarter of FY2024, representing 2 per cent of gross rental income.
Its top 10 tenants account for 23 per cent of portfolio gross rental income.
FLCT has secured a new lease for one of two sites occupied by manufacturing company Techtronic, unlocking “positive rental reversion with no downtime”, said the manager.
Its total portfolio is valued at $6.9 billion, excluding one property under development in Europe and right-of-use assets.
FLCT’s manager also noted that it has a healthy aggregate leverage of 33.2 per cent and interest coverage ratio of 5.7 times, as well as significant debt headroom of $793 million.
Looking ahead, the manager said there is sustained demand for “quality and core properties”, with occupiers preferring locations that are strategic to business operations.
Units of FLCT closed 3 per cent higher at $1.02 on Aug 1.
Correction note: The story has been amended to reflect the correct interest coverage ratio of 5.7 times.
