Frasers Logistics & Commercial Trust (FLCT) booked a 12.1% year-on-year decline in distributable income to S$224.65 million for the 12 months ended 30 September 2025, even as revenue rose 5.6% to S$471.49 million, aided by recent acquisitions and firmer logistics rents but weighed down by higher finance expenses.
FLCT will pay a distribution per unit (DPU) of 2.95 Singapore cents for the six months to 30 September, bringing full-year DPU to 5.95 cents, 12.5% lower than the preceding year’s 6.80 cents. The final payout is scheduled for 23 December 2025 and represents an annualised distribution yield of about 6.3% based on the end-September unit price of S$0.95.
Revenue growth was driven by contributions from the S$140.3 million acquisition of 2 Tuas South Link 1 in Singapore, the maiden lease income from the newly completed Maastricht logistics facility in the Netherlands, and stronger occupancy at UK business parks. Overall, FLCT completed about 510,300 sq m of leasing in FY2025, achieving average rental reversions of +5.0% on an incoming-outgoing basis and +29.5% on an average-rent comparison. Portfolio occupancy improved to 95.1%, underpinned by a 99.7% rate for logistics and industrial (L&I) assets, while the portfolio WALE lengthened to 4.8 years.
These gains were partly eroded by headwinds including higher vacancies at Alexandra Technopark, a softer Australian dollar and increased land-tax outlays in Victoria and Queensland. Finance costs also rose after refinancing at higher interest rates and additional borrowings to fund developments and acquisitions, curbing bottom-line growth despite stronger topline performance.
During the year FLCT sharpened its L&I focus, lifting the segment’s share of assets to 75.1% from 71.9%. Key transactions included the DPU-accretive purchase of 2 Tuas South Link 1—its first Singapore logistics property—and the divestment of 357 Collins Street in Melbourne for A$192.1 million, which released capital for reinvestment and reduced exposure to a challenged CBD office market. The trust also completed a fully-leased logistics facility near Maastricht Airport, adding 37,000 sq m of space on a 10-year lease.
According to chief executive officer Anthea Lee, the trust navigated FY2025’s “complex operating environment” of geopolitical tension and elevated interest rates by leaning on the resilience of its modern L&I assets, which delivered double-digit rental uplifts and near-full occupancy. She noted that prudent capital management—reflected in a 35.7% aggregate leverage ratio and 70.4% fixed-rate debt—would underpin the pursuit of further accretive logistics acquisitions as market conditions evolve. Lee added that sustaining DPU and enhancing portfolio quality remain immediate priorities, even as the manager keeps an eye on currency and rate volatility.
Looking ahead, FLCT expects industrial demand in its core markets—particularly Australia, the UK and continental Europe—to stay underpinned by e-commerce and supply-chain reconfiguration, while office segments in certain regions may remain soft. The manager said it will continue to recycle capital from non-core commercial assets, maintain a disciplined approach to gearing and hedging, and target opportunities that bolster the trust’s logistics and industrial weighting and long-term income resilience.
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