- Frasers Logistics & Commercial Trust has one of the lowest gearing ratios, at ~36%, amongst its peers, and debt headroom of more than S$400mil before gearing reaches 40%.
Revenues and NPI higher y-o-y due mainly to acquisitions.
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- However, the revenue uplift was partially offset by higher vacancy rates at Alexandra Technopark (ATP) and 357 Collins Street, which weighed on occupancy-driven income. In addition, an increase in taxes during the period also placed some pressure on overall revenue growth.
1HFY25 DPU of 3.00 cents was ~10% lower h-o-h – within our expectations, but below consensus.
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- During the period, approximately 57% of management fees were paid in cash, a shift from the previous practice of paying fees entirely in units.
- To help buffer DPU, management also utilised approximately S$18mil in distribution gains during the first half of the year. However, we understand that management intends to gradually reduce reliance on such distribution gains to support payouts moving forward, aiming for a more sustainable distribution profile over time.
Stable gearing and borrowing costs.
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