Frasers Logistics &Commercial Trust (FLCT) reported a distribution per unit (DPU) of 3.8 cents for the 1HFY2021 ended March, 9.5% higher y-o-y from 3.47 cents previously.
The higher DPU follows FLCT's record revenue of $231.7 million for the period (up 95.1% y-o-y), while adjusted net property income (NPI) grew 79.3% y-o-y to $173.9 million. The higher revenue and NPI are mainly attributable to the merger between Frasers Logistics Trust and Frasers Commercial Trust, acquisitions, as well as the strengthening AUD:SGD and EUR:SGD currencies.
These were partly offset by the divestments made in 1HFY21 and rental waivers and allowance for doubtful receivables of $1.2 million attributable to the Covid-19 pandemic
To that end, distributable income grew 71.1% y-o-y to $130.4 million for the 1HFY2021. Unitholders can expect distribution to be paid out on June 18.
FLCT’s portfolio value stood at $6.3 billion as of 1HFY2021, comprising 97 properties spanning 2.5 million square meters of lettable area. Occupancy stood at 96.8%, with a weighted average lease expiry (WALE) of 4.7 years and upcoming lease expiries of 3.5%. Net asset value per unit stood at $1.14 as at March 31, 3.6% higher than the $1.10 as at Sep 30, 2020.
SEE:Analysts positive on Frasers Logistics & Commercial Trust on growth prospects
In its 1HFY2021 business update, the manager notes that FLCT executed 33 leasing transactions (126,133 square metres) in the half-year.
In terms of its outlook, the manager states that “significant uncertainty” remains on the economy’s return to normalcy would be fully realised, given concerns on new virus variants and a resurgence in Covid-19 cases.
Nonetheless, the manager states that Covid-19 has had “no material impact” to FLCT’s portfolio to date, with only the retail segment of the commercial portfolio, which represents 1.8% of FLCT’s total portfolio income, being more challenged.
Looking ahead, the REIT Manager will continue to focus on proactive asset and lease management strategies to generate sustainable long-term value for FLCT unitholders.
Robert Wallace, CEO of the REIT manager, says FLCT’s performance y-t-d demonstrates the strength and resilience of its logistics and commercial portfolio. “I am delighted that FLCT is in a position to report a record 1HFY2021 DPU of 3.8 cents, and a healthy portfolio occupancy rate of 96.8%.”
“We also achieved two milestones in April 2021, firstly with FLCT being included as a constituent stock of the benchmark Straits Times Index and secondly, the assignment to FLCT of an inaugural ‘BBB+’ credit rating with a ‘Stable’ outlook by global rating agency S&P Global. Both achievements are expected to elevate FLCT's profile and will assist it to generate sustainable long-term growth for unitholders,” he adds.
Units in FLCT closed flat at $1.47 on May 5.
