Frasers Logistics and Commercial Trust H1 DPU falls 8.6% on foreign exchange weakness

SINGAPORE – Frasers Logistics and Commercial Trust (FLCT) posted an 8.6 per cent decline in distribution per unit (DPU) to 3.52 cents for its first half ended March 31, from 3.85 cents the year before.

Revenue fell by 11.7 per cent to $208 million for the half year from $235.7 million previously, said FLCT’s manager on Thursday.

It attributed the lower DPU to foreign exchange weakness against the Singapore dollar, as overseas assets in Australia, Europe and Britain represented 90.2 per cent of FLCT’s portfolio value.

The lower top-line figures were also due to the divestment of Cross Street Exchange in Singapore in 2022, and the absence of an early surrender fee from Farnborough Business Park in Britain in the first half of financial year 2023.

Net property income fell to $157.9 million for the first half, representing a 14 per cent decline from the year before.

Distributable income fell 8 per cent year on year to $130.8 million from $142.1 million previously. Capital distribution for the half year includes the distribution of $4.3 million in divestment gains.

The distribution will be paid on June 15, after the record date of May 12.

FLCT’s occupancy rate stood at 95.9 per cent as at March 31, with a weighted average lease expiry of 4½ years.

During the half-year period, it completed the development of two logistics and industrial properties in Britain – Blythe Valley Park and Worcester Six.

FLCT maintained a healthy aggregate leverage at 27.8 per cent for the first half, although finance costs remained elevated due to higher interest costs on borrowing.

The trust’s manager remains optimistic about its logistics and industrial-focused portfolio, as well as its healthy balance sheet.

Units of FLCT closed three cents higher, or 2.26 per cent, at $1.36 on Thursday.

THE BUSINESS TIMES