Frasers Logistics & Commercial Trust - CGS-CIMB Research 2023-11-02: Robust Balance Sheet

• Frasers Logistics & Commercial Trust (FLCT, SGX:BUOU)’s 2HFY23 (Apr to Sep 2023) revenue/NPI fell 0.8%/4.9% y-o-y to S$212.8m/S$157.1m, on weaker A$ vs S$, lower occupancies at Maxis Business Park and 357 Collins St, partly offset by contributions from new acquisitions and Worcester and Connexion II (completed in 1QCY23).
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Portfolio valuation down by 4.6%

• Frasers Logistics & Commercial Trust revalued its portfolio down by 4.6% y-o-y at end-FY23, dragged mainly by lower Australian commercial, UK business parks and Europe logistics values, partly offset by higher valuation of its Australia logistics portfolio on strong rental growth.
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Strong portfolio rental reversion

• Overall portfolio occupancy was 96% at end-FY23, with its logistics/industrial (L&I) portfolio 100% filled and commercial portfolio at 89.9% (-70bp q-o-q).
• Frasers Logistics & Commercial Trust renewed ~100k sq m of leases in 4QFY23 (492k sqm in FY23) and achieved an average positive rental reversion of 30.1% (FY23: +18.9), on an average-to-average basis.
• The L&I segment reported a +33.5%/19.9% rental uplift on lease renewals in 4QFY23/FY23. Meanwhile, nine commercial leases in Australia, Singapore and UK were re-contracted at average reversions of +9.2/12.3%.

Google's departure from Alexandra Technopark

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LOCK Mun Yee CGS-CIMB Research | Natalie ONG CGS-CIMB Research | https://www.cgs-cimb.com 2023-11-02 SGinvestors.io

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