FLCT revenue hits S$216M in 1HFY24 but 1.1% lower DPU of 3.48 cents

SINGAPORE: Frasers Logistics & Commercial Trust (FLCT) revenue surged, hitting S$216 million in the first half of the financial year, a 3.9% increase from last year’s S$208 million.

Singapore Business Review reported that the boost in financial figures was largely attributed to positive rent adjustments, which significantly increased revenue.

Adjusted net property income also showed a positive trend, reaching S$158,694 for the period, a 1.8% increase year-over-year.

Commenting on the market scenario, FLCT noted in their statement:

“In Singapore, overall demand for business parks remained cautious as consolidations outweighed new set-ups and expansions, as firms continued to prioritise cost-savings and workplace optimisation strategies.”

The positive momentum in financials was further fuelled by contributions from newly acquired properties like Ellesmere Port, Connexion II, and Worcester. However, higher vacancies and higher operating expenses offset this uptrend.

Despite the overall growth, distributable income for the first half of the financial year experienced a slight dip, falling to S$130,662 from $130,782 in the corresponding period of the previous year.

The distribution per unit (DPU) for the same period also saw a marginal decrease, at 3.48 cents compared to 3.52 cents in the previous year. This translated to an annualised distribution yield of 6.9%.

Investors can mark their calendars for the 1HFY24 DPU, scheduled to be paid out on June 18 this year.

FLCT also highlighted a significant influx of new supply in the business park and light industrial space, amounting to over 4 million sq ft since the end of 2022. Consequently, vacancy rates in the sector remained elevated at 21%.

FLCT noted, “While overall rents remained stable, the market was increasingly bifurcated as buildings experiencing higher vacancies began to witness softening rentals in efforts to retain and attract new tenants.” /TISG

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