Frasers Logistics & Commercial Trust Review @ 21 May 2023
$FRASERS LOGISTICS & IND TRUST(BUOU.SI)$
Basic Profile & Key Statistics
Main Sector(s): Office, Industrial & Logistics
Country(s) with Assets: Australia, Singapore, Germany, England & Netherlands
No. of Properties (exclude development/associate/fund): 107
Key Indicators
Performance Highlight
Gross revenue, NPI, distributable income and DPU declined YoY mainly due to mainly loss of income from Cross Street Exchange which was divested on 31 March 2022 and lower exchange rate for f AUD, EUR and GBP against the SGD.
Rental Reversion
Rent reversion for the latest quarter is at 3.6% for incoming vs outgoing and 23.2% for average vs average.
Development
The development of Ellesmere Port is targeted to be completed by Dec 2023. Whereas for Blythe Valley Park and Worcester, the development has been completed.
Related Parties Shareholding
REIT Sponsor's Shareholding: Below median by 10% or more
REIT Manager's Shareholding: Below median by 20% or more
Directors of REIT Manager's Shareholding: Above median by 20% or more
Lease Profile
Occupancy: ± 5% from median
WALE: Above median by 10% or more
Highest Lease Expiry within 5 Years: ± 10% from median; Falls in FY25
Weighted Average Land Lease Expiry: Above median by 20% or more
Debt Profile
Gearing Ratio: Below median by 20% or more
Cost of Debt: Below median by 20% or more
Fixed Rate Debt %: ± 10% from median
Unsecured Debt %: ± 10% from median
WADM: Below median by 10% or more
Highest Debt Maturity within 5 Years: Below median by 10% or more; Falls in FY25
Interest Coverage Ratio: Above median by 20% or more
Diversification Profile
Top Geographical Contribution: Below median by 20% or more
Top Property Contribution: Below median by 20% or more
Top 5 Properties' Contribution: Below median by 20% or more
Top Tenant Contribution: Below median by 20% or more
Top 10 Tenants' Contribution: Below median by 20% or more
Key Financial Metrics
Property Yield: ± 10% from median
Management Fees over Operating Distributable Income: ± 10% from median; $5.56 distribution for every dollar paid
Operating Distributable Income on Capital: ± 10% from median
Operating Distributable Income Margin: Above median by 10% or more
Operating Distribution Proportion: Below median by 10% or more
DPU Breakdown
TTM DPU Breakdown:80.6% from Operation14.5% from Management Fees Paid in Units1.2% from Income Support3.6% from Proceeds from Divestment0.1% from Release of Retention
Trends
Uptrend: NAV per Unit, Interest Coverage Ratio
Flat: DPU from Operation, Operating Distributable Income Margin
Slight Downtrend: Occupancy
Downtrend: Property Yield, Operating Distributable Income on Capital
Relative Valuation
P/NAV: Average for 1y; Below -1SD for 3y & 5y
Dividend Yield: Average for 1y, 3y & 5y
Author's Opinion
Performance has declined as compared to the previous half-year due to lower income arising from lower exchange rates against SGD, higher borrowing costs, and reduced income support and divestment proceeds. Only 3.9% of debts will expire by 2H FY23 and the proportion of fixed-rate debt is at 76.2%, close to the SREITs median level. Although the gearing ratio is low, it is unclear if any acquisitions will be pursued in the near future to enhance the DPU back to the previous year's levels.
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 decisions.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
Will the company be pursuing any acquisitions to boost its DPU in the near future?
How can the company mitigate the effects of higher borrowing costs on its financials?
mark