Frasers Logistics & Commercial Trust's 2H FY24 Result Review

REIT_TIREMENT
11-25

$Frasers L&C Tr(BUOU.SI)$

Basic Profile & Key Statistics

Key Indicators

Performance Highlight

Year over year, gross revenue and adjusted NPI have seen improvement, mainly driven by contributions from Ellesmere Port, which achieved practical completion in December 2023 and from the acquisition of German logistics properties in March 2024. However, distributable income to unitholders and DPU have declined YoY despite a higher distribution from divestment gain mainly due to higher finance costs and 100% of management fees being paid in cash.

Rental Reversion

FLCT achieved strong portfolio rent reversion for the FY24, with 12.8% for incoming vs outgoing and 23.6% for average vs average.

Acquisition

On 5th November, FLCT completed the acquisition of 2 Tuas South Link in Singapore. 

Development

The development of the Maastricht Logistics Development is completed and the lease commenced in October. 

Asset Enhancement Initiative

The facade replacement for Central Park was completed in August. 

Related Parties Shareholding

  • REIT Sponsor's Shareholding: Less Favorable

  • REIT Manager's Shareholding: Less Favorable

  • Directors of REIT Manager's Shareholding: Favorable

Lease Profile

  • Occupancy: Moderate

  • WALE: Moderate

  • Highest Lease Expiry in 4 Years: Favorable

  • Weighted Average Land Lease Expiry: Moderate

Debt Profile

  • Gearing Ratio: Favorable

  • Cost of Debt: Favorable

  • Fixed Rate Debt %: Moderate

  • Unsecured Debt %: Moderate

  • WADM: Moderate 

  • Highest Debt Maturity in 4 Years: Moderate

  • Interest Coverage Ratio: Favorable

Diversification Profile

  • Top Sector Contribution: Favorable

  • Top Geographical Contribution: Favorable

  • Top Property Contribution: Favorable

  • Top 5 Properties' Contribution: Favorable

  • Top Tenant Contribution: Favorable

  • Top 10 Tenants' Contribution: Favorable

Key Financial Metrics

  • Property Yield: Favorable

  • Management Fees over Operating Distributable Income: Moderate

  • Operating Distributable Income on Capital: Moderate

  • Operating Distributable Income Margin: Favorable

  • Operating Distribution Proportion: Less Favorable

DPU Breakdown

  • TTM Distribution Breakdown:76.3% from Operation7.3% from Management Fees Paid in Units16.3% from Divestment Proceeds0.1% being Retention Release

Trends (Up to 10 Years)

  • Uptrend: NAV per Unit, Adjusted Interest Coverage Ratio

  • Downtrend: DPU from Operations, Committed Occupancy, Property Yield, Operating Distributable Income over Manager's Fees, Operating Distributable Income on Capital, Operating Distributable Income Margin, Operating Distribution Proportion

Price Range & Relative Valuation Metrics

  • Dividend Yield: Above +1SD for 1y, 3y, 5y & 10y

  • P/NAV: Below -1SD for 1y, 3y, 5y & 10y

Author's Opinion

As compared to the previous half-year, gross revenue and NPI have improved. However, distributable income to unitholders and DPU have declined mainly due to higher finance costs and 100% of management fees being paid in cash, offset by higher distribution from divestment gain. Regarding debt, around 24% would be maturing in the coming 12 months.

For more information, check out REIT-TIREMENT

*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 own findings and should not be considered as 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 decision.

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Comments

  • ELI_59
    11-25
    ELI_59
    Thanks for the massive information 😘 I will digest this slowly. Thanks for sharing 🌈🌈🌈
  • icycrystal
    11-25
    icycrystal
    thanks for sharing
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