SINGAPORE (Nov 2): The manager of Frasers Logistics & Industrial Trust has reported a 4Q distribution per unit (DPU) of 1.77 cents, 8.6% higher than forecast.
This brings FLT's FY17 DPU to 8.85 cents, 6.1% higher than forecast.
FLT achieved gross revenue of A$42.2 million ($44.1 million) for 4Q, 4.8% above forecast of A$40.3 million, and adjusted net property income of A$32.3 million, 4.7% above forecast.
Distributable income was 12.1% above forecast at A$26.5 million, backed by contributions from the four completed properties acquired in August, coupon interest income from the three development properties, and partially due to the recovery of an insurance claim provided for in the prior quarter.
FLT also benefited from interest savings arising from a lower actual weighted average interest rate of 2.8% per annum, compared to a forecast weighted average interest rate of 3.4% per annum and lower debt drawn as compared to forecast.
During the quarter, FLT renewed two leases in Victoria and also signed a new 3-year lease with Adelaide Packaging Supplies in South Australia. In total, 31,947 sq m of space was leased/renewed during the quarter.
As at Sept 30, portfolio occupancy improved to 99.4%, with a WALE of 6.75 years and minimal lease expiries of 2.5% for FY17.
The total value of FLT’s portfolio was A$1.91 billion as at end Sept.
FLT’s aggregate leverage was 29.3%. Total borrowings was A$580 million, 72% of which are hedged. The weighted average interest rate for borrowings for 4Q was 2.8% per annum.
In its outlook, FLT’s manager says demand remains strong and developments are predominately leased prior to completion.
Units in FLT closed at $1.11 on Wednesday.
