SINGAPORE (Jan 25): The manager of Fraser Logistics & Industrial Trust (FLT) has declared a distribution per unit (DPU) of 1.8 cents for 1Q18, growing 3.4% from 1.74 cents in 1Q17 on foreign exchange gains.
The improvement in the latest quarter’s DPU was mainly due a higher currency hedge rate of A$1 to $1.0583 compared to A$1 to $1 a year ago.
Revenue grew 6.9% to A$42.4 million from $39.7 million a year ago due to higher rental income.
Adjusted net property income (NPI) grew 8.9% to $33.4 million from $30.7 million a year ago.
The improvement in adjusted NPI was mainly due to contributions from properties the Beaulieu and Stanley Black & Decker facilities, which was completed in Oct and Nov 2017 respectively, as well as a full quarter’s contribution from the Martin Brower property which was acquired in Nov 2016.
Property expenses fell 21% to A$7.6 million from A$6.3 million a year ago, largely due to a decline in lower ground lease expenses.
“FLT started the year on a strong footing, delivering year-on-year DPU growth to our unitholders. In line with the REIT Manager’s focus on active portfolio management, we executed three forward lease extensions in 1QFY18, further extending FLT’s lease expiry profile,” says Robert Wallace, CEO of the manger.
“The continued strength of our property portfolio, together with the pipeline of potential Australian and European industrial and logistics properties from our Sponsor, Frasers Centrepoint Limited, positions FLT for both organic and inorganic growth opportunities,” he adds.
Looking ahead, FLT’s manager says it will continue to grow the trust’s prime industrial portfolio with a focus on generating sustainable, long-term value for its unitholders.
Units in FLT closed flat at $1.16 on Thursday.
