Frasers Logistcs & Commercial Trust (FLCT) has achieved a distribution per unit (DPU) of 3.88 cents for the 2HFY2021 ended September, 6.3% higher than 3.65 cents posted the previous year.
This brings FY2021 DPU to 7.68 cents, 7.9% higher y-o-y.
Revenue for the 2HFY2021 came in at $237.6 million, up 11.4% y-o-y, mainly attributable to acquisitions undertaken in FY2020 and FY2021, which was partially offset by divestment activities during the same period, and rental waivers amounting to $1.6 million in FY2021.
In tandem with the higher revenue, adjusted net property income grew 12.4% y-o-y to $181.3 million, while distributable income grew 11.8% y-o-y to $139.6 million for the 2HFY2020.
For the full year, FLCT achieved revenue of $469.3 million, up 41.4% y-o-y, underpinning adjusted net property growth of 37.5% y-o-y to $355.2 million. Distributable income grew 34.4% y-o-y to $270.1 million.
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In 2H2021, FLCT executed 60 leasing transactions across its logistics and commercial portfolio, representing a lettable area of 226,840 sq m. This brings the total leasing activity in FY2021 to 93 transactions for 352,972 sq m or 13.3% of total portfolio lettable area.
As at Sept 30, FLCT’s portfolio had an occupancy rate of 96.2% and a weighted average lease expiry of 4.8 years.
FLCT’s portfolio has a total of 103 properties across five countries which is valued at approximately $7.3 billion as at Sept 30, up from S$6.2 billion a year ago. This increase was mainly due to the acquisition of six freehold properties in Germany, the Netherlands and the UK during the year, as well as a $603.9 million valuation uplift of FLCT’s investment properties.
FLCT’s cash and cash equivalents stood at $140.4 million as of 30 Sept, while aggregate leverage stood at 33.7%.
In terms of outlook, FLCT’s manager notes that the overall operating environment is expected to continue being influenced by global events included the recent global energy crunch and the ongoing pandemic.
“As we continue to navigate through this period of global uncertainty, FLCT remains focused on managing any financial implications arising from Covid-19 and will continue to work closely with our tenant community to overcome this trying period,” the manager says.
The manager also highlights that although the situation remains dynamic, there has been no material impact to the FLCT portfolio to-date with only the retail segment of the commercial portfolio, which represents just a minor proportion of FLCT’s total portfolio income, being more challenged.
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Looking ahead, the manager says it will continue to focus on proactive asset and lease management strategies to generate sustainable long-term value for FLCT unitholders.
Units in FLCT closed down 2 cents or 1.32% lower at $1.49 on Nov 10.
Photo: FLCT
