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FLCT’s 1HFY2024 DPU down by 1.1% y-o-y to 3.48 cents from higher finance costs

Felicia Tan
Felicia Tan • 2 min read
FLCT’s 1HFY2024 DPU down by 1.1% y-o-y to 3.48 cents from higher finance costs
FLCT's Egelsbach property. Photo: FLCT
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The manager of Frasers Logistics & Commercial Trust (FLCT) has reported a distribution per unit (DPU) of 3.48 cents for the 1HFY2024 ended March 31, 1.1% lower y-o-y.

Revenue for the six-month period rose by 3.9% y-o-y to $216.0 million from positive rent reversions, rental escalations and contributions from Ellesmere Port, Connexion II and Worcester. The growth was partly offset by higher vacancies in the REIT’s commercial assets and higher property operating expenses. The higher property operating expenses were mainly due to higher non-recoverable land taxes in Australia, utilities, repair and maintenance expenses.

Finance costs also rose y-o-y due to the higher interest rates and additional borrowings drawn for capital expenditure

Distributable income dipped by 0.1% y-o-y to $130.7 million.

As at March 31, portfolio occupancy stood at 94.3% with 100% occupancy maintained for FLCT’s logistics and industrial arm. FLCT’s commercial portfolio stood at 85.0%. Weighted average lease expiry (WALE) stood at 4.3 years.

As at the same period, aggregate leverage stood at 32.7%; the REIT’s interest coverage ratio stood at 5.9 times.

See also: Cordlife posts net loss of $11.57 mil for 1QFY2024 due to refund fulfilment

Net asset value (NAV) per unit stood at $1.16, down from $1.17 as at Sept 30, 2023.

“FLCT continued to record resilient operating performance across its portfolio supported by sound underlying portfolio fundamentals. Despite macroeconomic uncertainties and market volatility, we have maintained a high portfolio occupancy of 94.3% with overall positive rental reversions across asset classes,” says Anthea Lee, CEO of the manager.

“With our healthy capital position, we will maintain our focus on seeking opportunities for investing in logistics & industrial assets,” she adds. “We remain confident that with our healthy business fundamentals and portfolio management capabilities, FLCT will continue to deliver value for all stakeholders.”

See also: Changi Airport Group reports FY2024 earnings of $431 mil, 13.1 times higher y-o-y

The DPU will be paid out on June 18.

Units in FLCT closed at $1.01 on May 6.

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