Frasers Logistics and Commercial Trust FY20 Full Year Results

Frasers Logistics and Commercial Trust

Frasers Logistics and Commercial Trust has announced their FY20 full year results on 6th November 2020. This post came late as I was too busy with work and only realize Frasers Logistics and Commercial Trust had announce their full year results last month. Since Frasers Logistics and Commercial Trust makes up a major position in my stock portfolio, I am very interested to see how it has performed in FY20, the year of COVID-19 pandemic.

Gross revenue increased 53.0% to A$332.0 million and Distributable Income increased 48.8% to A$201.1 million. A full year DPU of 7.12 Singapore cents was paid in FY20 which was an increase of 1.7% as compared to FY19. Solid performance despite the COVID-19 pandemic!

Frasers Logistics and Commercial Trust FY20 Full Year Results

Net Property Income increased by 46.2% as compared to FY19. The year-on-year (“y-o-y”) increases were contributed by the merger, German properties acquisition, and the FY2019 and FY2020 acquisitions.

FY20
(A$’000)
FY19
(A$’000)
Change
Gross Revenue 332,029 217,076 53.0%
Net Property Income 258,335 176,641 46.2%
Distributable Income 201,080 135,098 48.8%
Distribution Per Unit (“DPU”) (Singapore cents) 7.12 7.00 1.7%

Debt

Gearing ratio stood at 37.4%. There is still a debt headroom of S$1,651 million prior to reaching the 50.0% aggregate regulatory leverage limit.

Occupancy

Frasers Logistics and Commercial Trust portfolio stood stable with an occupancy rate of 97.5% and a weighted average lease expiry (“WALE”) of 4.9 years. Lease expiries represent 7.9% of gross rental income for the financial year ending 30 September 2021.

Current Dividend Yield

Now the question you may want to ask is if the current dividend yield still attractive?

Based on the full year distribution per unit of 7.2 Singapore cents and share price of S$1.43, this translate to a current dividend yield of 5.03%.

Frasers Logistics and Commercial Trust Share Price 24 Dec 20

Summary

Frasers Logistics and Commercial Trust pays out its DPU in AUD. This means it is subjected to foreign exchange risk whereby dividend collect in SGD tends to be impacted.

Since March 2020, AUD starts to strengthen. As of today, the current exchange rate for AUD to SGD is 1 AUD to 1.02 SGD. This means means more dividends for investors when converted from AUD to SGD.

I have also noticed that Mr. Robert Wallace, Chief Executive Officer of the REIT Manager is good at recycling capital by divesting assets when valuation goes up and then reinvest the capital into new assets to continue growing them. I noticed a similar strategy that is used to by adopted by CapitaLand Commercial Trust.

Frasers Logistics and Commercial Trust has certainly brought value to investors by growing its dividend payout y-o-y and the appreciation of its share price has added value as well.

Well done!