SINGAPORE (Aug 1): The manager of Frasers Logistics & Industrial Trust (FLT) reported a 2.9% year-on-year growth in distribution per unit (DPU) to 1.80 cents for the 3Q18 ended June from a year ago.
Frasers Logistics & Industrial Asset Management said gross revenue and adjusted net property income grew by 22.6% and 27.4% respectively during 3Q18 to A$49.3 million ($49.7 million) and A$39.3 million, compared to gross revenue and adjusted net property income of A$40.2 million and A$30.8 million in 3Q17.
The uplift was backed by additional contributions from the four completed properties in Australia which were acquired in 2017 as well as maiden contributions from the 17 industrial properties in Germany and four in the Netherlands which were acquired this year.
Underpinned by the positive factors, distributable income rose 22.4% to A$30.7 million for 3Q18, compared to A$25.0 million a year ago.
For the nine-month period from Oct 1 2017 to June 30 (9M18), FLT’s distributable income rose 9.9% to A$82.4 million, from A$75.0 million in 9M17. DPU grew 3.2% to 5.41 cents, compared to 5.24 cents for 9MFY17.
As at June 30, FLT’s portfolio remained at near full occupancy of 99.3%, with a weighted average lease expiry (WALE) by gross rental income (GRI) of 7.01 years, and minimal lease expiries by GRI of 0.1% and 3.4% respectively.
FLT’s aggregate leverage was 36.3%, providing adequate available debt headroom for growth. Total borrowings were A$1.08 billion, 81% of which were at fixed interest rates. The weighted average interest rate for borrowings for 3Q18 was 2.5%7 per annum.
In its market update, FLT’s manager says Australia’s leasing market has been robust with national take-up levels 13% above the 10-year average over the past 12 months. The German industrial and logistics market remains underpinned by increasing demand, including growth in e-commerce and a favourable economic environment.
Units in FLT closed at $1.05 on Wednesday.
