Frasers Logistics Trust reports nearly flat fiscal 4Q net property income

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Frasers Logistics & Industrial Trust reported Wednesday fiscal fourth quarter net property income rose 0.6 percent on-year to A$50.49 million (S$47.26 million) on contributions from acquisitions in Europe and Australia, partially offset by divestments in Australia.

Revenue for the quarter ended 30 September rose 1.9 percent on-year to A$61.62 million, the REIT said in a filing to SGX.

The distribution per unit (DPU) came in at 1.82 Australian cents, up 2.2 percent from 1.78 Australian cents in the year-ago period, Frasers Logistics Trust said.

In Singapore dollar terms, the DPU was 1.73 Singapore cents, down 2.8 percent from 1.78 Singapore cents in the year-ago period, the trust said.

The portfolio reached 100 percent occupancy in October, up from 99.6 percent at end-September, with the signing of a five-year lease agreement with Amazon at the 60 Paltridge Road, Perth Airport, Western Australia property, the filing said.

For the full fiscal year, Frasers Logistics Trust reported net property income increased 23.2 percent on-year to A$199.35 million on revenue of A$240.76 million, up 23 percent on-year.

The full-year DPU was 7.27 Australian cents, up 4.8 percent from 6.94 Australian cents in the year-ago period, the filing said. In Singapore dollar terms, the DPU was 7.0 Singapore cents, down 2.6 percent from 7.19 Singapore cents in the year-ago period, the trust said.

“FLT maintained a creditable performance in FY2019, achieving distributable income growth and a stable DPU notwithstanding the volatile
currency market,” Robert Wallace, CEO of the REIT’s manager, said in the statement.

“We deepened our foothold in the major logistics markets of Australia, Germany and the Netherlands via the acquisitions of 11 freehold logistics properties and undertook three opportunistic divestments that were all transacted at premiums to book value,” he added.

The REIT was upbeat on the Australian market outlook, pointing to strong demand for industrial space on strong population growth, public infrastructure spending and e-commerce sector growth.

Vacancies are at five-year lows across the three major industrial markets of Sydney, Melbourne and Brisbane, the REIT said.

Take-up levels for industrial space also remained high in Germany and the Netherlands, the REIT said.

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