On 6 May 2026, Frasers Logistics & Commercial Trust (“FLCT”) released their half year result for FY2026. Management has disclosed that while DPU remain unchanged on a half-yearly basis, it is mainly supported by operations as capital distributions from divestment gains have decreased significantly. FLCT has also paid down their borrowings, leading to lower interest expenses and a stronger financial position. These factors translate to a potentially more sustainable distribution yield, and FLCT is in a more reliable position to grow their DPU moving forward.
Disclaimer: Not financial advice. This content is provided for general informational purposes only and does not constitute financial, investment, legal, or tax advice. The information presented is based on publicly available data and estimates that may be subject to change without notice. It does not take into account your individual financial situation, investment objectives, risk tolerance, or specific needs.
Website: Financial Statements And Related Announcement::Half 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 | Unchanged | No Update |
| Rating | Neutral | Unfavourable |
The DPU metric will be assessed on a half yearly basis given the information available from the business updates.
DPU for the first half of FY2026 has remained unchanged at SGD0.0295 per unit. Noted that DPU from operations have improved this half of the year, supported by an increased in adjusted net property income. The metric shifted towards Neutral.
Occupancy
| Metrics | Current | Previous |
|---|---|---|
| Occupancy | 96.1% | 96.2% |
| Rating | Favourable | Favourable |
The occupancy metric will be assessed on a quarterly basis given the information available from the business updates.
Occupancy rate as of 31 March 2026 has remained relatively unchanged to 96.1%. This is contributed by 99.8% for the logistics and industrial assets and 88.4% for their commercial assets. The metric remains Favourable as it is above my expected healthy occupancy rate of 95%.
Gearing Ratio
| Metrics | Current | Previous |
|---|---|---|
| Gearing Ratio | 33.7% | 34.8% |
| Rating | Favourable | Favourable |
The gearing ratio metric will be assessed on a quarterly basis given the information available from the business updates.
Gearing ratio as of 31 March 2026 has decreased to 33.7%. Noted that this is contributed with a decrease in total borrowings to SGD2,355 million compared to SGD2,405 million in the previous quarter. The metric remains Favourable.
Interest Coverage
| Metrics | Current | Previous |
|---|---|---|
| Interest Coverage | 4.4x | 4.1x |
| Rating | Favourable | Favourable |
The interest coverage metric will be assessed on a quarterly basis given the information available from the business updates.
The interest coverage as of 31 March 2026 has increased to 4.4 times. The metric remains Favourable 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 | 2.8 years |
| Rating | Favourable | Favourable |
The debt maturity profile metric will be assessed on a quarterly basis given the information available from the business updates.
Weighted average term to maturity of their debt as of 31 March 2026 has remained unchanged at 2.8 years. This metric remains Favourable. Do note that approximately 18.0% of their debt will mature by end of FY2027.
Price to Book Ratio
| Metrics | Current | Previous |
|---|---|---|
| Price to Book Ratio | 0.87 | 0.88 |
| Rating | Favourable | Favourable |
The price to book ratio metric will be assessed on a quarterly basis. Although the information on net asset value is only available from the business updates on a half yearly basis, the most recent share price is available on a daily basis.
The Price to Book (“P/B”) ratio remain relatively unchanged at 0.87. This is computed using the closing share price of SGD0.970 per unit on 19 June 2026 and the net asset value of SGD1.12 per unit as of 31 March 2026. The P/B ratio is Favourable as it is still a discount from book value.
As of 19 June 2026, the Market Capitalization is approximately SGD3,687 million.
Website: Yahoo Finance: Frasers Logistics & Commercial Trust (BUOU.SI)
Dividend
| Year | Yield | Total |
|---|---|---|
| 2026 | 3.04% | SGD 0.030 |
| 2025 | 6.13% | SGD 0.060 |
| 2024 | 7.01% | SGD 0.068 |
| 2023 | 7.26% | SGD 0.070 |
| 2022 | 7.86% | SGD 0.076 |
With a distribution of SGD0.030 per unit paid in the first half of the calendar year 2026, when annualised this is aligned to the total distribution paid out during the calendar year 2025 amounting to SGD0.060 per unit. With a closing share price of SGD0.970 per unit as of 19 June 2026, this translates to a dividend yield of 6.13%. For my benchmark, a reasonable yield would be around an average of 4.75%. The dividend yield for FLCT is Favourable.
Website: Reasonable Dividend Yield 2026Q2 – 4.75%
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 17 June 2026 held US interest rates between 3.50% and 3.75% after Kevin Warsh’s first meeting in charge of the central bank.
Fed governors were split on whether to keep rates steady or increase them in a bid to tame inflation, which has been pushed up by the US-Israel war in Iran.
Website: Warsh to review how Fed works after holding US interest rates at first meeting
FLCT have disclosed that every potential +50 bps in interest rates on variable rate borrowings is estimated to reduce DPU by 0.08 Singapore cents per annum. With a DPU of SGD0.0595 per unit for FY2025, the impact is illustrated as below:
| Change in Interest Rates | Impact on DPU (SG cents) | Impact on DPU (%) |
|---|---|---|
| 50 bps | 0.08 | 1.3% |
| 100 bps | 0.16 | 2.7% |
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 21.9% and 11.7% and the top tenant accounting for 3.8% and 4.1% of GRI contribution for the Logistics & Industrial tenants and Commercial tenants respectively. This provides income diversity to the portfolio.
Summary
| Metrics | Financials | Rating |
|---|---|---|
| Distribution Per Unit | Unchanged | Neutral |
| Occupancy | 96.1% | Favourable |
| Gearing Ratio | 33.7% | Favourable |
| Interest Coverage | 4.4x | Favourable |
| Debt Maturity Profile | 2.8 years | Favourable |
| Price to Book Ratio | 0.87 | Favourable |
| Overall | Favourable |
Overall, FLCT metrics remain Favourable. For a final look at the overarching strategy, I recommend a quick reread of the summary and overall outlook provided in the opening paragraphs.
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): FY2026 First Quarter Business Update
