SINGAPORE (July 26): The manager of Frasers Logistics & Industrial Trust (FLT) reported 3Q19 DPU of 1.82 Australian cents, 3.4% higher than 1.76 Australian cents in 3Q18.
However, in Singapore dollar terms, 3Q19 DPU came in at 1.73 cents, a decrease of 3.9% from a year ago, due to the softening of the Aussie dollar and Euro against the Singdollar.
Frasers Logistics & Industrial Asset Management says 3Q19 revenue came in at A$60.0 million, 21.6% higher compared to A$49.3 million in 3Q18, while adjusted net property income rose 24.4% to A$48.9 million in 3Q19, from A$39.3 million for 3Q18.
The increases took into account contributions from FLT’s FY18 European acquisition, FY18 Australian acquisition and the FY19 Dutch acquisition, as well as other income of A$1.1 million which was partially offset by the FY18 divestments and the South Park Drive divestment.
Distributable income for 3Q19 therefore came in 20.4% higher at A$36.9 million compared to A$30.7 million a year ago.
Currently, FLT has a portfolio of 81 logistics and industrial properties, worth A$2.9 billion ($2.7 billion), concentrated within major logistics and industrial markets in Australia, Germany and the Netherlands.
As at June 30, FLT’s portfolio remained at near full occupancy of 99.5%, with a weighted average lease expiry (WALE) of 6.27 years, and there were no lease expiries for the financial year ending Sept 30 2019.
FLT’s aggregate leverage stood at 35.4% while total borrowings were A$1.11 billion, 63% of which were at fixed interest rates.
In its outlook statement, FLT’s manager says industrial take-up levels in Australia remain robust with 2.4 million sqm leased over the 12-month period to June, underpinned by demand from retail, third-party logistics and logistics occupiers.
The strong demand for industrial space is largely due to population growth, public infrastructure spending and the growth in e-commerce, it adds.
For Germany, take-up levels for logistics and industrial properties of above 5,000 sqm remained high at 2.9 million sqm for the first half of 2019, as new supply for the rental market remained limited with users continuing to seek build-to-suit solutions. Average prime yields for the major German logistics hubs were at 3.9% for the first half of 2019.
For the Netherlands, take-up levels for logistics and industrial properties of above 5,000 sqm also remained high at 1.5 million sqm for the first half of 2019.
Units in FLT closed at $1.21 on Friday.
