SINGAPORE (Nov 5): The manager of Frasers Logistics & Industrial Trust (FLT) reported a DPU of 1.78 cents for the 4Q18 ended Sept, a 0.6% increase from 1.77 cents for 4Q17.
This brings total DPU for FY18 to 7.19 cents, which is a 2.6% increase from 7.01 cents in FY17.
Revenue and adjusted net property income rose 43.2% and 52.6% respectively during 4Q18 to A$60.4 million and A$49.3 million, compared to revenue and adjusted net property income of A$42.2 million and A$32.3 million for 4Q17.
The increases were mainly due to the acquisition of 21 properties in Germany and the Netherlands which was completed in May and the recent acquisition of two prime grade properties in Australia -- at South Centre Road, Melbourne Airport and Boundary Road, Carole Park, Queensland -- in September.
Distributable income correspondingly grew to A$36.0 million for 4Q18, up 35.6% from A$26.5 million a year ago.
On Oct 31, FLT also acquired a freehold logistics facility in the Netherlands.
As at Sept 30, the total value of FLT’s portfolio was A$3.0 billion, up by A$56 million compared with the carrying value of A$2.9 billion.
FLT’s portfolio remained at near full occupancy of 99.6%, with a weighted average lease expiry (WALE) by gross rental income (GRI) of 6.87 years.
FLT’s aggregate leverage was 34.6%. Total borrowings were A$1.07 billion, 82% of which were at fixed interest rates. The weighted average interest rate for borrowings for 4Q18 was 2.5% per annum.
In its outlook, Robert Wallace, CEO of the REIT manager, says, “The fundamentals for our key markets of Australia, Germany and the Netherlands are expected to remain positive, underpinned by healthy economic data and a burgeoning e-commerce sector, which has driven demand for industrial and logistics properties.”
Year to date, units in FLT are down 10.5% to close at $1.02 on Monday.