The higher AOS rate has increased FLCT's land and property tax by $9 million and lowered its net property income by 2 percentage points in FY2024.
UOB Kay Hian's Jonathan Koh has reiterated his "buy" call for Frasers Logistics & Commercial Trust (SGX:BUOU
) (FLCT) but with a lower target price of $1.33, from $1.44, to take into account higher taxes in Australia. Income foregone because of the time needed to find new tenants for some of its properties in Singapore and the UK had also been taken into account.
In his Jan 2 note, Koh says that absentee owner surcharge (AOS) levied by Australia's state of Victoria has been doubled in 2024 to 4% of the taxable value of land. The affected properties account for 16% of FLCT's gross revenue in its FY2024 ended Sept 2024.
