Frasers Logistics & Commercial Trust (FLCT) has seen a $0.2 million dip in its distributable income for 1QFY2021 ended Dec 31.
However, this has not been so material to the Real Estate Investment Trust (REIT), its manager announced in a business update on Feb 7.
The amount comes from rental waivers and allowance for doubtful receivables due to the pandemic.
So far, FLCT has not seen a material impact to its portfolio, it says adding that only the retail segment of the commercial portfolio has been more challenged. This segment makes up close to 1.7% of the REIT’s overall income.
Going forward, FLCT’s manager reckons that structural changes driven by the growth of e-commerce activities and ‘hub and spoke’ trends will drive demand for logistics and suburban office spaces respectively.
During the quarter. FLCT had 69.274 m of leasing, while its overall portfolio revision was down 1.6% on an incoming versus outgoing basis.
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Occupancy levels were healthy and were at 100% for the logistics and industrial portfolio and 91% for the commercial portfolio.
FLCT’s weighted average lease expire (WALE) was 4.6 years for its top 10 portfolio tenants which are based in Australia, Germany and Singapore.
The REIT is seen to have a well-spread out lease expiry profile with at most 17.4% of gross rental income (GRI) expiring in a single year. Another 54.7% of GRI contribution is accounted for by tenants from the logistics and industrial sectors.
In FY2022, six industrial and 38 commercial leases are up for renewal. This makes up for a GRI of 4.8%.
In 1QFY22, FLCT’s aggregate leverage stood at 34.3% while its average weighted debt maturity stood at 3.1 years. Meanwhile, its debt headroom was down from $139 million to $2.32 billion.
In this time, total gross borrowings stood at $2.56 billion.
Units of FLCT ended down a cent or 0.71% at $1.39 on Feb 7.
Cover image: The Edge Singapore
