On 7 November 2025, Frasers Logistics & Commercial Trust (“FLCT”) released their full year result for FY2025. FLCT reported a notable improvement in its overall occupancy rate this quarter, with management highlighting successful efforts to backfill previously vacated spaces across its logistics and industrial portfolio. This stronger take-up suggests that cash-flow visibility may improve, and it could potentially support a stabilization or uplift in DPU in the next financial period as more assets begin contributing fully.
However, it is important to note that FLCT’s commercial properties continue to face softer demand and lower occupancy levels. This segment remains a drag on the overall portfolio occupancy and may limit the pace at which performance metrics recover. While the industrial and logistics assets remain resilient, sustained challenges in the commercial segment mean that the FLCT’s outlook will depend on management’s ability to lease up vacant space, manage refinancing costs, and navigate ongoing macroeconomic uncertainty.
Disclaimer: Not financial advice. All data and information provided on this site is for informational purposes only. It does not take into account your individual needs, investment objectives and specific financial circumstances.
Website: Financial Statements And Related Announcement::Full Yearly Results
Photo source: https://fifthperson.com/2023-frasers-logistics-commercial-trust-agm/
Financial Highlights
Distribution Per Unit (“DPU”)
| Metrics | Current | Previous |
|---|---|---|
| Distribution Per Unit | -1.7% | No Update |
| Rating | Unfavorable | Unfavorable |
DPU for the second half of FY2025 has decreased by 1.7% to SGD0.0295 per unit when compared to SGD0.0300 per unit for the first half of FY2025. The main reason for the decrease was due to an increase in finance costs to SGD43 million from SGD39 million, while adjusted net property income saw an increase to SGD164 million from SGD161 million. The metric remains Unfavorable.
Occupancy
| Metrics | Current | Previous |
|---|---|---|
| Occupancy | 95.1% | 92.5% |
| Rating | Favorable | Unfavorable |
Occupancy rate as of 30 September 2025 saw a significant increase to 95.1%. This is contributed by 99.7% for the logistics and industrial assets and 86.1% for their commercial assets. The improvement was due to the backfilling of previously vacated space. This metric shifted towards Favorable as it is above my expected healthy occupancy rate of 95%.
Gearing Ratio
| Metrics | Current | Previous |
|---|---|---|
| Gearing Ratio | 35.7% | 36.8% |
| Rating | Favorable | Favorable |
Gearing ratio as of 30 September 2025 has decreased to 35.7%. Noted that the total borrowings remain relatively unchanged at SGD2,513 million compared to SGD2,482 million in the previous quarter. The metric remains Favorable.
Interest Coverage
| Metrics | Current | Previous |
|---|---|---|
| Interest Coverage | 4.3x | 4.1x |
| Rating | Favorable | Favorable |
The interest coverage as of 30 September 2025 has increased to 4.3 times. The metric remains Favorable as it is significantly above my preferred interest coverage of 3.0 times.
Debt Maturity Profile
| Metrics | Current | Previous |
|---|---|---|
| Debt Maturity Profile | 2.8 years | 2.6 years |
| Rating | Favorable | Favorable |
Weighted average term to maturity of their debt as of 30 September 2025 has lengthened to 2.8 years. This metric is Favorable. Do note that approximately 26.0% of their debt will mature by end of FY2027.
Price to Book Ratio
| Metrics | Current | Previous |
|---|---|---|
| Price to Book Ratio | 0.89 | 0.88 |
| Rating | Favorable | Favorable |
The Price to Book (“P/B”) ratio became more expensive at 0.89. This is computed using the closing share price of SGD0.980 per unit on 1 December 2025 and the net asset value of SGD1.10 per unit as of 30 September 2025. The P/B ratio is Favorable as it is still a discount from book value.
As of 1 December 2025, the Market Capitalization is approximately SGD3,715 million.
Website: Yahoo Finance: Frasers Logistics & Commercial Trust (BUOU.SI)
Dividend
| Year | Yield | Total |
|---|---|---|
| 2025 | 6.07% | SGD 0.060 |
| 2024 | 6.94% | SGD 0.068 |
| 2023 | 7.18% | SGD 0.070 |
| 2022 | 7.78% | SGD 0.076 |
| 2021 | 7.84% | SGD 0.077 |
The total dividend paid out during the calendar year 2025 amounted to SGD0.060 per unit. With the closing share price of SGD0.980 per unit as of 1 December 2025, this translates to a dividend yield of 6.07%. For my benchmark, a reasonable yield would be around an average of 4.25%. The dividend yield for FLCT is Favorable.
Website: Reasonable Dividend Yield 2025Q4 – 4.25%
Do note that DPU has been declining over the past few years. As such, there is a risk that this trend may persist, which could negatively impact the share price.
Interest Rate Sensitivity
The Federal Reserve on 29 October 2025 approved its second straight interest rate cut, though Chair Jerome Powell rattled markets when he threw doubt on whether another reduction is coming in December. This lowers the benchmark overnight borrowing rate to a range of 3.75% to 4.00%.
Website: Fed cuts rates again, but Powell raises doubts about easing at next meeting
FLCT have disclosed that every potential +50 bps in interest rates on variable rate borrowings is estimated to reduce DPU by 0.10 Singapore cents per annum. With DPU of SGD0.0595 per unit for FY2025, the impact is illustrated as below:
| Change in Interest Rates | Impact on DPU (SG cents) | Change as % of FY2025 DPU |
|---|---|---|
| 50 bps | 0.10 | 1.7% |
| 100 bps | 0.20 | 3.4% |
| 150 bps | 0.30 | 5.0% |
| 200 bps | 0.40 | 6.7% |
Other Metrics
Tenant Profile
FLCT has an enlarged portfolio covering logistics and industrial properties, CBD commercial assets and office and business parks, FLCT has government related entities, well-established multinationals, conglomerates, and publicly listed companies among its tenants.
The high quality and diverse tenant base provide resilience to the FLCT portfolio across challenging events. The top 10 tenants accounted for 22.1% and 12.1% of GRI contribution for the logistics & industrial tenants and commercial tenants respectively with the top tenant accounting for 4.7% during the period. This provides income diversity to the portfolio.
Summary
| Metrics | Financials | Rating |
|---|---|---|
| Distribution Per Unit | -1.7% | Unfavorable |
| Occupancy | 95.1% | Favorable |
| Gearing Ratio | 35.7% | Favorable |
| Interest Coverage | 4.3x | Favorable |
| Debt Maturity Profile | 2.8 years | Favorable |
| Price to Book Ratio | 0.89 | Favorable |
| Overall | Favorable |
Overall, the metrics for FLCT shifted towards Favorable, supported by an improved occupancy rate. This may lead to higher DPU in the next half of the year, which could in turn further strengthen the other metrics.
Background
FLCT is a real estate investment trust (“REIT”) with a portfolio comprising logistic, industrial, and commercial properties diversified across five developed countries – Australia, Germany, Singapore, the United Kingdom (“UK”) and the Netherlands.
FLCT was listed on the Mainboard of Singapore Exchange Securities Trading Limited (“SGX-ST”) on 20 June 2016 as Frasers Logistics & Industrial Trust (“FLT”) and was subsequently renamed FLCT on 29 April 2020 following the completion of a merger with Frasers Commercial Trust (“FCOT”).
FLCT’s investment strategy is to invest globally in a diversified portfolio of income-producing properties used predominantly for logistics or industrial purposes located globally, or commercial purposes (comprising primarily central business district (“CBD”) office space) or business park purposes (comprising primarily non-CBD office space and/or research and development space) located in the Asia-Pacific region or in Europe (including the UK).
Previous Post
Website: Frasers Logistics and Commercial Trust (SGX: BUOU): 2025 Third Quarter Business Update
One thought on “Frasers Logistics and Commercial Trust (SGX: BUOU): 2025 Full Year Result”