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!

Screening For Dividend Stocks In April 2020

Screening For Dividend Stocks In April 2020

Last month, the stock market had crashed due to the impact of COVID-19. Since then, the stock market has started its recovery when news of government from different countries started to provide stimulus budget to revive the economy. During the crisis, I have picked up OCBC Bank, Singtel, US Manulife REIT and added more of CapitaMall Trust when their stock prices fell. If you didn’t know, I am a dividend investor. Thus, I usually look out for stocks with attractive dividend yield that provides me with endless dividends many years ahead. The stock market crash has provided me with such an opportunity.

I will run the Stocks Café stock screener every month which gives me a list of stocks that fulfill my dividend criteria. I fall into the medium risk type of investor and thus I never looked at stocks with dividend yield more than 10%. Below are the criteria that I used to identify dividend stocks.

  • Current Yield (%) >= 5 and <= 10
  • Price / Earnings <=20
  • Price / Book <= 3
  • Market Capitalization >= 1B

Below are the top dividend yielding stocks as of 10th April 2020. I believe you will see some REITs that you have been eyeing for before the stock market had crashed. Even though the stock prices have started the recovery, the current yield is still attractive.

Name Current Yield % P/E P/B Market Cap
Mapletree NAC Trust 9.981 4.44 0.611 2.8B
OUE Commercial REIT 8.711 13.38 0.618 2B
Ascendas-iTrust 8.644 5.29 1.084 1.4B
DBS 7.837 7.65 0.998 48.7B
Frasers Logistics and Industrial Trust 7.568 9.05 0.974 2.1B
CapitaRetail China Trust 7.557 8.46 0.845 1.6B
Frasers Commercial Trust 7.385 7.91 0.794 1.2B
Suntec REIT 7.37 9.21 0.605 3.6B
CapitaMall Trust 7.125 8.89 0.798 6.2B
Ascendas REIT 7.038 17.7 1.29 10.1B
Yanlord Land 6.733 2.97 0.358 2B
ComfortDelgro 6.527 12.25 1.252 3.2B
Frasers Centrepoint Trust 6.275 9.41 0.87 2.2B
UOB 6.197 7.74 0.849 33.4B
SIA Engineering 6.18 10.44 1.29 2B
CapitaCommercial Trust 6.082 12.77 0.784 5.6B
SPH REIT 6.081 11.84 0.786 2.1B
TCIL HK$ 6.044 17.2 0.329 3.7B
SATS 5.938 15.9 2.211 3.6B
OCBC Bank 5.922 7.91 0.863 39.4B
Jardine Cycle & Carriage 5.833 6.71 0.875 8.1B
Mapletree Commercial Trust 5.595 5.45 0.955 5.6B
Yangzijiang Ship Building 5.435 5.9 0.601 3.6B
Guocoland 5.385 5.72 0.374 1.4B
Olam International 5.208 9.01 0.852 4.6B
SPH 5.195 12.19 0.72 2.5B
Frasers Property 5.128 7.32 0.453 3.4B
Lonza 5.042 5.72 0.659 5.9B

Last, I just want to mention again that the above list is for reference only and we should do our homework before buying into the stock simply for the dividend yield.