Frasers Logistics & Commercial Trust second-half DPU up 5.5%

Revenue nearly doubled, rising to a record $213.3 million for the half year, from $109.6 million a year ago. PHOTO: FRASERSPROPERTY.COM

SINGAPORE (THE BUSINESS TIMES) - Frasers logistics & Commercial Trust (FLCT) distribution per unit (DPU) rose 5.5 per cent to 3.65 cents for its second half ended Sept 30, from 3.46 cents a year ago, its manager said in a regulatory filing on Friday morning (Nov 6).

Revenue nearly doubled, rising to a record $213.3 million for the half year, from $109.6 million a year ago. Adjusted net property income (NPI) soared 80.6 per cent to $161.4 million, from $89.4 million in the year-ago period.

The year-on-year increases were attributed to the merger of FLCT and Frasers Commercial Trust, and the acquisition of properties in Germany and Australia in 2019 and 2020, FLCT's manager said.

This was partially offset by the effects of the divestments of several properties, as well as $5.7 million in rental waivers granted and provisions for doubtful debt for mainly qualifying SME tenants due to the Covid-19 pandemic, it added.

Distributable income jumped 81.7 per cent year on year to $124.9 million for the six months, from $68.7 million in the year-ago period. The DPU of 3.65 cents represents a full payout of FLCT's H2 2020 distributable income, the manager said.

FLCT's total distributions for the six-month period ended Sept 30 comprise a distribution of 3.39 cents per unit for the period Apr 15 to Sept 30, which will be paid out on Dec 17, and an advanced distribution of 0.26 cent per unit for the period Apr 1 to Apr 14, which was paid on June 26, 2020.

For the full year ended Sept 30, DPU was higher at 7.12 cents, versus seven cents a year ago, and distributable income grew 48.8 per cent to $201.1 million. Revenue was 53 per cent higher at $332 million, while adjusted NPI rose 46.2 per cent to $258.3 million for the full year.

"Our solid performance, with a full-year DPU of 7.12 cents delivered amid the Covid-19 pandemic, testifies to the strength and resiliency of the FLCT portfolio," said Robert Wallace, chief executive officer of FLCT's manager. He added that FLCT had stable portfolio occupancy of 97.5 per cent as at Sept 30.

FLCT's manager said the operating environment is expected to remain challenging in the months ahead, as the global spread of Covid-19 continues to disrupt the business environment and operating conditions across global markets.

"There has been no material impact to the FLCT portfolio to date, although the situation remains dynamic with continued uncertainties," the manager said, adding that capital and liquidity management remains a key strategic priority.

FLCT units rose four cents or 3 per cent to close at $1.37 on Thursday.

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