On 6th May 2022, Frasers Logistics and Commercial Trust announced their 1HFY22 financial results. The Trust currently makes up 12.12% of my stock portfolio.
Revenue increased 1.7% to S$235.7 million while Net Property Income (NPI) increased 3.6% to reach S$180.1 million. Distribution Per Unit (DPU) increased 1.3% to 3.85 cents.
As at 31 March 2022, the FLCT portfolio comprises 94 logistics and industrial properties and 7 commercial properties, with a total value of approximately S$6.7 billion as at 31 March 2022.
Net Asset Value increased 6.5% from S$1.24 as at 30 September 2021 to S$1.32 as at 31st March 2022.
As a dividend investor, I am certainly excited to hear that Frasers Logistics and Commercial Trust is able to grow their Net Asset Value and achieve higher DPU year-on-year.
Frasers Logistics and Commercial Trust 1HFY22 Financial Results
| 1HFY22 (S$’000) |
1HFY21 (S$’000) |
Change | |
| Gross Revenue | 235,670 | 231,701 | 1.7% |
| Net Property Income | 180,085 | 173,890 | 3.6% |
| Distributable Income | 142,108 | 130,426 | 9.0% |
| Distribution Per Unit (“DPU”) (Singapore cents) | 3.85 | 3.80 | 1.3% |
Occupancy
Overall portfolio occupancy stood at 96.1% with a WALE (Weight Average Lease Expiry) of 4.6 years.
Debt
As at 31 March 2022, Frasers Logistic and Commercial Trust’s aggregate leverage was 33.1%. Subsequently in April 2022, Frasers Logistic and Commercial Trust repaid S$395 million of borrowings which brought down the aggregate leverage to approximately 29.5%.
Current Dividend Yield
Based on the FY21 full year DPU of 7.68 cents and current share price of S$1.34, this translate to a current dividend yield of 5.73%.
Summary of Frasers Logistics and Commercial Trust 1HFY22 Results
Given the current environment whereby interest rates are rising, I applaud the manager for reducing its aggregate debt ratio. At a low gearing of 29.5%, the manager definitely has lots of room for more acquisitions.
The share price of Frasers Logistic and Commercial Trust seem to be beaten down just like any other stocks out there in the market. This has made the current dividend yield attractive at 5.73%.
In my opinion, this is a good opportunity for dividend investors who wanted to buy but didn’t have a chance to do so previously.