Frasers Logistics & Commercial Trust H2 DPU drops 11.1% to S$0.0295

Revenue for the period rises 3.7% to S$239.2 million, from S$230.6 million previously

The manager of Frasers Logistics & Commercial Trust (FLCT) on Friday (Nov 7) posted a distribution per unit (DPU) for the second half of FY2025 ended September of S$0.0295. It was down 11.1 per cent from S$0.0332 in the corresponding period a year prior.

This was in line with capital distribution being steadily reduced to S$0.0026 in H2, consistent with the real estate investment trust’s (Reit) approach to preserve debt headroom for growth while supporting near-term distribution stability, said the manager.

Revenue for H2 rose 3.7 per cent to about S$239.2 million, from S$230.6 million in the same period a year before.

Net property income (NPI) also jumped 5.7 per cent to S$172.4 million, from S$163.1 million in H2 the previous year.

The manager said the adjusted NPI for H2 – which excludes straight-lining adjustments for rental income and adds lease payments of right-of-use assets – stood at S$164.9 million, up 2.2 per cent from S$161.3 million in the previous corresponding period.

The year-on-year increases were mainly due to contributions from the acquisition of 2 Tuas South Link 1 in November 2024, and improved overall contributions from its UK business parks and the Maastricht property in the Netherlands, which achieved practical completion in October 2024.

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On the other hand, distributable income decreased 10.6 per cent to S$111.7 million for the period, from S$124.9 million in H2 FY2024.

The Reit’s manager said it will continue to optimise returns from its commercial assets through proactive asset management and competitive marketing initiatives.

“While there are signs of potential easing in monetary policy, we continue to maintain a prudent capital management approach and employ appropriate hedging strategies to mitigate volatility arising from foreign exchange and interest rate risks,” it said.

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Units of FLCT closed Thursday 1.6 per cent or S$0.015 lower at S$0.955.