Frasers Logistics & Industrial Trust fiscal 4Q net property income rose 53 percent on acquisitions

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Frasers Logistics & Industrial Trust reported on Monday that its adjusted net property income for the fiscal fourth quarter rose 52.6 percent on-year to A$49.31 million after recent acquisitions.

Revenue for the quarter ended 30 September increased 43.2 percent on-year to A$60.44 million, the trust’s manager, Frasers Logistics & Industrial Asset Management, said in a filing to SGX on Monday.

“The increases were mainly contributed by the acquisition of 21 properties in Germany and the Netherlands which was completed in May 2018 and the recent acquisition of two prime grade properties in Australia in September 2018,” the trust manager said.

The distribution per unit (DPU) for the quarter was 1.78 Singapore cents, up 0.6 percent on-year from 1.77 Singapore cents in the year-ago quarter, it said. It will be paid out on 19 December, the filing said.

For the full fiscal year, adjusted net property income rose 24.6 percent on-year to A$155.40 million, while revenue increased 20.1 percent on-year to A$195.77 million, the trust manager said. DPU for the full year was 7.19 Singapore cents, up 2.6 percent on-year from 7.01 Singapore cents in the previous year, it said.

The portfolio remained near full occupancy at 99.6 percent as of 30 September, it said.

Outlook

In the trust’s outlook, Robert Wallace, CEO of the REIT manager, was positive.

“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,” Wallace said in the statement.

“For Australia, high levels of public infrastructure spending, population and consumption growth will continue to drive demand for industrial and logistics space. The German and Dutch markets are similarly in an upswing with growing demand for industrial and logistics space set against a backdrop of limited supply,” he added.

FLT’s manager noted that after the quarter’s end, it it acquired a freehold logistics property in the Netherlands.

Including that acquisition, FLT has a portfolio of 83 logistics and industrial properties valued at around A$3.0 billion across Australia, Germany and the Netherlands, the filing said.