Frasers Logistics & Commercial Trust H1 DPU drops 1.7% to S$0.0295

[SINGAPORE] Frasers Logistics & Commercial Trust (FLCT) reported a 1.7 per cent drop in its distribution per unit (DPU) to S$0.0295 for its first half ended Mar 31, 2026, from S$0.03 the year before.

Distributable income for the period declined 1 per cent year on year to S$111.9 million from S$113 million. The decline in DPU was due to a lower capital distribution of S$6.6 million in H1 2026 compared with S$19.5 million in H1 2025.

The distribution will be paid out on Jun 22 after books closure on May 15.

In a statement on Tuesday (May 5), the manager reported that revenue for H1 was up 2.8 per cent at S$238.9 million from S$232.3 million in the year-ago period. 

Net property income (NPI) grew 4.1 per cent on the year to S$174.1 million from S$167.4 million.

Excluding straight lining adjustments for rental income and adding lease payments of right-of-use assets, its adjusted NPI grew 3.6 per cent to S$167 million from S$161.3 million. 

The manager attributed the higher revenue and adjusted NPI to positive rental reversions and annual rent increments in the Australian and European logistics and industrial segments. 

Performance was also boosted by a full six-month contribution from 2 Tuas South Link 1 and favourable exchange rate movements. 

These gains were partially offset by the divestment of 357 Collins Street in September 2025, higher vacancies at Alexandra Technopark and Farnborough Business Park, and increased non-recoverable land taxes in Australia, the manager said.

As at Mar 31, 2026, the group’s portfolio occupancy stood at 96.1 per cent with a weighted average lease expiry of 4.9 years. Aggregate leverage remained healthy at 33.7 per cent with an interest coverage ratio of 4.4 times.

Units of FLCT closed S$0.01 or 1 per cent higher at S$0.97 on Monday.