SINGAPORE (May 7): The manager of Frasers Logistics & Industrial Trust (FLT) reported a distribution per unit (DPU) of 1.81 cents for the 2Q ended March, 3.4% higher than the DPU of 1.75 cents reported a year ago, lifted by the higher distributable income and a higher hedged exchange rate.
As FLT makes distributions to unitholders on a semi-annual basis, FLT's distribution for the six months ended March comes in at 3.61 cents. This is 3.4% higher than the DPU of 3.49 cents declared in 1H17.
Frasers Logistics & Industrial Asset Management says gross revenue and adjusted net property income grew by 6.4% and 8.1% respectively during 2Q18 to A$43.6 million ($43.7 million) and A$33.4 million, compared to gross revenue and adjusted net property income of A$40.9 million and A$30.9 million for the previous corresponding quarter (2Q17).
These were lifted by additional contributions from the four completed properties in the 2017 acquisition transaction, as well as the Beaulieu and Stanley Black & Decker facilities, which had achieved practical completion on Oct 13 2017 and Nov 17 2017, respectively.
FLT distributable income for 2Q18 increased by 3.2% to A$25.9 million, from A$25.1 million a year ago, due mainly to contributions from the 2017 acquisition transaction.
Three leases in New South Wales and Victoria were executed during the review quarter for a total gross lettable area (GLA) of 34,527 sq m. As at March 31, FLT’s portfolio remains at near full occupancy of 99.4%, with a weighted average lease expiry (WALE) by gross rental income (GRI) of 6.75 years, and minimal lease expiries by GRI of 1.1% for the financial year ending Sept 30.
As at March 31, FLT’s aggregate leverage was 30.5%, providing FLT with available debt headroom for growth. Total borrowings were A$615 million, 85% of which are at fixed interest rates. The weighted average interest rate for borrowings for 2QFY18 was 2.9% per annum.
Looking ahead, the REIT manager says it will continue to grow FLT’s prime industrial portfolio with a focus on generating sustainable, long-term value for its unitholders.
Units in FLT closed at 3 cents lower at $1.02 on Monday.
