This is the financial results announcement I have been waiting for. On Monday, 5th November 2018, Frasers Logistics and Industrial Trust has announced their 4QFY18 financial results. You can guess why I am so anxious and excited as Frasers Logistics and Industrial Trust makes up 15% of my stock portfolio and 23% of my wife’s stock portfolio. The manager of Frasers Logistics and Industrial Trust has been rather aggressive in their property divestment and new acquisition and I am expecting some extraordinary results.
You can read more of them here:
Frasers Logistics and Industrial Trust Divests 80 Hartley Street Asset
Frasers Logistics and Industrial Trust Divests Lot 102 Coghlan Road In South Australia
Frasers Logistics and Industrial Trust Acquires NSW Property and QLD Property
4QFY18 Results
Now, lets look at their 4QFY18 results.
Distributable income was up 35.6% to A$36.0 million as compared to A$27.0 million in 4QFY17. Distribution Per Unit (“DPU”) increased 0.6% to 1.78 Singapore cents as compared to 1.77 cents in 4QFY17. I was slightly disappointed with the DPU as it has only increased 0.6% as compared to 4Q2017 despite distributable income jumping 35.6%.
| 4QFY18 (A$’000) | 4QFY17 (A$’000) | Change | |
| Gross Revenue | 60,439 | 42,217 | 43.2% |
| Net Property Income | 49,306 | 32,320 | 52.6% |
| Distributable Income | 35,955 | 26,517 | 35.6% |
| Distribution Per Unit (“DPU”) (Singapore cents) | 1.78 | 1.77 | 0.6% |
FY18 Results
Distribution Per Unit (“DPU”) for the full year increased 2.6% to 7.19 cents. Dividend investors should celebrate.
| FY18 (A$’000) | FY17 (A$’000) | Change | |
| Gross Revenue | 195,766 | 163,060 | 20.1% |
| Net Property Income | 155,398 | 124,735 | 24.6% |
| Distributable Income | 118,341 | 101,501 | 16.6% |
| Distribution Per Unit (“DPU”) (Singapore cents) | 7.19 | 7.01 | 2.6% |
Debt
Gearing ratio stood at 34.6% and 82% of the borrowings are pegged to fixed interest rates.
Summary
There is really nothing much to write about this stable REIT which is able to grow its DPU. The only risk here is the AUD to SGD foreign exchange. As I only bought into Frasers Logistics and Industrial Trust this year, it is still early to tell if this cow can grow its DPU year on year.