To The Moon

$FRASERS LOGISTICS & IND TRUST(BUOU.SI)$

I like Reit investment. Today would like to share another of my favourite Reit, Fraser Logistic and Commercial Trust. Short form FLCT.

In today's price at $1.46, this reit pay out a decent 5% dividend.

Price of the Trust was not affected by the pandemic. In fact it outperform other reit.

But having said that, we are recovering from pandemic, yet price continue to hold.

Here I provide some background and their Q1FY22 news.

FLCT currently manages more than 100 properties across Australia, Singapore, Germany, the UK, and the Netherlands. The appraised value of FLCT’s portfolio about $7b.

In the recent FY2022 Q1 report, FLCT reported the following;

The Clcommencement of development at Blythe Valley Park to drive value creation; generating an additional NLA of 10,800 sqm

Key takeaway: i) commenced development at Blythe Valley Park, ii) unlocking value through the 2 recently announced divestments that will generate total divestment gains of S$200m, iii) plenty debt headroom to take on more value acquisitions and fund development project.

All these are positive to the reit.

However, some point to take note, i) slight dip in overall portfolio occupancy rates, largely due to the commercial portfolio, ii) negative rental reversions due to weakness in the Western Australian market. Will have to monitor further if the occupancy can recover post pandemic.

Despite the drop in portfolio occupancies and negative rental reversions, I still think that FLCT’s portfolio will improve once the divestment of Cross Street Exchange is completed. With an occupancy of only 83.6% at Cross Street Exchange, FLCT overall portfolio occupancy will improve once the leasehold property is divested. In addition, the divestment at a 28.3% premium to book value will also improve FLCT’s leverage to 29.8%, giving it opportunity for value acquisitions.

FLCT has also just announced the commencement of the development at the vacant plot at Blythe Valley Park. The GBP23.3m project will create an additional 10,800 sqm of L&I space which expect to generate healthy demand and complement the existing precinct once completed in 4Q22.

Pesonally I remain positive on FLCT given its strong set of results for FY21, and the resilience of its portfolio to pandemic. The portfolio remains very stable with its occupancy and built-in annual rental escalations in its leases will drive further growth to earnings.

Since April 2021, FLCT was included into STI index component stock.

I continue to stay vested and have regular DCA through Syfe Reit and also STI ETF.

Thank you for reading and happy investin@TigerStars