Frasers Logistics & Commercial Trust reports fiscal 1H edged higher

An artist's impression of the property under development at Worcester Six, a new business park in West Midlands, U.K. Frasers Logistics & Commercial Trust entered a deal to acquire the development property in late November 2021. Credit: FLCTAn artist's impression of the property under development at Worcester Six, a new business park in West Midlands, U.K. Frasers Logistics & Commercial Trust entered a deal to acquire the development property in late November 2021. Credit: FLCT

Frasers Logistics & Commercial Trust reported Friday its fiscal first half net profit rose 2.1 percent on-year to S$183.60 million on a full six month contribution from acquisitions made in the previous year and from an early surrender fee.

That was partly offset by divestments and lower exchange rates, the REIT said.

Adjusted net property income, excluding straight-line adjustments for rental income and adding lease payments of right-of-use assets, was up 3.6 percent on-year in the fiscal first half at S$180.09 million, the REIT said.

Revenue for the six months ended 31 March increased 1.7 percent on-year to S$235.67 million, the REIT said in a filing to SGX.

FLCT also posted a S$169.7 million gain on divestment of investment properties on the completion of the sale of Cross Street Exchange.

The distribution per unit (DPU) for the six-month period was 3.85 Singapore cents, up 1.3 percent from 3.80 Singapore cents in the year-ago period, the filing said.

The occupancy rate for the portfolio was at 96.1 percent, the REIT said,

“Amid a volatile macro environment and competitive landscape, we strategically deployed our capital to pursue over S$50 million in industrial development and forward-funding opportunities in the United Kingdom. The portfolio rebalancing activities conducted over the last six months – including the divestment of Cross Street Exchange in Singapore, have also provided us with significant financial strength and flexibility,” Robert Wallace, CEO of the REIT’s manager, said in the statement.

Outlook

In its outlook, the REIT said it expected the overall operating environment to improve as countries shift to an endemic Covid policy, but cited uncertainty over the possibility of a full recovery due to concerns over the potential for new, possibly more virulent, virus variants to emerge.

“With recovery on the cards in our key markets, FLCT remains focused on managing any financial implications arising from Covid-19, foreign exchange risks, and ongoing macroeconomic developments. There continues to be no material impact to the FLCT portfolio to-date, although the situation remains dynamic,” the REIT said.

FLCT’s portfolio had 94 logistics and industrial properties and seven commercial properties with a valuation of around S$6.7 billion as of end-March, the filing said.

Read more details of FLCT’s results.