SINGAPORE (July 28): The manager of Frasers Logistics & Industrial Trust (FLT) has posted distribution per unit (DPU) of 1.75 cents for the third quarter ended June, 6.7% higher than its IPO forecast for DPU of 1.64 cents.
Distributable income was 5.8% above the forecast at A$25.0 million. This was mainly due to 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.
FLT recorded gross revenue of A$40.2 million ($43.7 million) for the quarter, marginally below the forecast of A$40.3 million.
Actual property operating expenses were 1.6% below forecast at A$6.4 million.
As a result, adjusted net property income was in line with forecast at A$30.8 million.
“The June quarter has been another strong period for FLT, marked by financial results exceeding IPO forecasts for the fourth consecutive period,” says Robert Wallace, CEO of the manager.
Wallace adds that FLT during the quarter also announced the acquisition of seven properties in the eastern seaboard of Australia, as well as its first capital raise of 78 million units placed to institutional and accredited investors.
As at June 30, 2017, FLT’s portfolio occupancy held steady at 99.3%, with a weighted average lease expiry (WALE) of 6.7 years.
The total value of FLT’s portfolio was A$1.75 billion as at June 30, 2017.
Cash and cash equivalents stood at A$50.7 million as at June 30, 2017.
Looking ahead, the REIT manager says the Australian industrial supply is marginally above the long-term average, with construction activity predominantly concentrated in Melbourne and Sydney.
The manager says FLT is expected to at least meet the DPU forecast of 6.50 cents for the full-year ended September.
Units of Frasers Logistics & Industrial Trust closed 1.5 cents higher at $1.11 on Friday.
