REIT-TIREMENT - REITs Investing & Personal Finance

REITs investing & personal finance

Sunday, May 19, 2024

Frasers Logistics & Commercial Trust's 1H FY24 Result Review

Basic Profile & Key Statistics

Key Indicators

Performance Highlight
Year over year, gross revenue and NPI have seen a slight increase, driven by positive rent reversions and rental escalations. Despite a significant rise in finance costs, distributable income and DPU remain similar, supported by the release of a greater divestment gain this year.

Rental Reversion
FLCT achieved strong portfolio rent reversion for the 1h FY24, with 10% for incoming vs outgoing and 18.3% for average vs average.

In March, FLCT completed the acquisition of 4 logistics properties in Germany. 

The construction of the Maastricht Logistics Development began in the 2Q FY24 and is expected to be completed in the 1H FY25, which is an ambitious 12-month timeframe. Additionally, the development of Ellesmere Port reached completion in December 2023.

Asset Enhancement Initiative
Facade replacement for Central Park is expected to be completed by 4Q 2024. A substantial amount of material is expected to be recycled, aligning with sustainability practices.

Related Parties Shareholding
The directors of the REIT manager hold a relatively high proportion of shares, while the REIT sponsor and REIT manager hold a relatively low proportion.

Lease Profile

Overall, the lease profile falls within the median range, with a well-spread lease expiry.

Debt Profile
The adjusted interest coverage ratio is high, with a low cost of debt and low gearing ratio. In addition, debt maturity is well spread. However, WADM is relatively short.

Diversification Profile
The diversification profile is excellent.

Key Financial Metrics

Operating distributable income margin is high. However, the management fee is relatively low compared to the operating distributable income, and the operating distribution proportion is also low.

DPU Breakdown
  • TTM Distribution Breakdown:
    • 75.8% from Operation
    • 14.4% from Management Fees Paid in Units
    • 0.1% from Income Support
    • 9.6% from Divestment Proceeds
    • 0.1% from Release of Retention


  • Uptrend: NAV per Unit, Adjusted Interest Coverage Ratio
  • Slight Downtrend: Committed Occupancy
  • Downtrend: DPU from Operation, Property Yield, Operating Distributable Income on Capital, Operating Distributable Income Margin

Relative Valuation

  • Dividend Yield - Above +1SD for 1y, 3y & 5y
  • P/NAV - Below -1SD for 1y, 3y & 5y

Author's Opinion

Gross revenue and NPI have slightly increased from the previous half-year. While finance costs have risen, affecting distributable income to unitholders and DPU, the impact has been mitigated by a higher divestment gain, keeping the figures relatively stable. Regarding debt, there's a a significant portion of debt, 22.7%, maturing in the next six months.

For more information, check out:

SREITs Dashboard - Detailed information on individual Singapore REIT

SREITs Data - Overview and details of Singapore REIT

REIT Review - List of previous REIT review posts

To support my work, check out:

Patreon - Subscribe and get exclusive content

Investing Note - Support by following my Investing Note profile

X - Support by following my X account

Facebook Page - Support by liking my Facebook Page    

Facebook Group - REIT Investing Community - Join to share and discuss REITs

Telegram Channel - Singapore REITs Post - Join to receive posts for Singapore REITs

Buy Me a Coffee - Treat me a coffee for my efforts

*Disclaimer: The information presented on this blog is for educational and informational purposes only. The materials, including research and opinions, are based solely on my findings and should not be considered professional financial advice or a definitive statement of fact. I cannot guarantee the accuracy, completeness, or reliability of the information provided. I shall not be held liable for any errors, omissions, or losses that may occur as a result of using the information presented on this blog. It should be noted that the information presented on this blog does not constitute a buy, sell, or hold recommendation for any security. It is crucial to conduct your own thorough research and due diligence before making any investment decisions.

No comments:

Post a Comment