Frasers Logistics & Commercial Trust (BUOU) H1 2026 earnings summary

Executive summary

• Revenue for 1HFY26 rose 2.8% year-over-year to S$238.9 million, with adjusted net property income up 3.6% to S$167.0 million, driven by positive rental reversions, annual rent reviews, and contributions from recent acquisitions, partially offset by divestments and higher vacancies in select assets.

• Distributable income for H1 FY2026 was S$111.9 million, with DPU at 2.95 Singapore cents, annualized yield of 6.6% based on unit price as of March 31, 2026.

• Portfolio occupancy rate stood at 96.1% as of March 31, 2026, with a WALE of 4.9 years and strong rent reversions in logistics and industrial segments.

• Portfolio remains diversified across five developed countries, with 113 properties valued at S$7.0–7.1 billion.

• Sustainability focus: over 90% of portfolio by GFA is green certified or pursuing certification, with a 5-Star GRESB rating.

Financial highlights

• Revenue rose 2.8% to S$238.9 million and adjusted net property income increased 3.6% to S$167.0 million year-over-year for 1HFY26.

• DPU before capital distribution-divestment gains was 2.82 Singapore cents, up 11.9% year-over-year; total DPU was 2.95 cents.

• Investment property value rose 1.6% to S$7.1 billion, mainly due to forex gains from AUD and capital expenditures.

• Net asset value per unit increased to S$1.12 as of March 31, 2026.

• Aggregate leverage stood at 33.7%, with interest coverage ratio at 4.4x and 75% of borrowings at fixed rates.

Outlook and guidance

• Market transitioning from scarcity-driven to quality-driven, with prime assets expected to outperform.

• Manager expects global growth to weaken in 2026, with risks from geopolitical tensions, inflation, and interest rates.

• Logistics and industrial sector expected to remain resilient amid cautious occupier sentiment and rising supply.

• Inflation protection is embedded in leases where possible, and capital structure is managed with diverse funding and hedging strategies.

• No material operational impact from current geopolitical or trade environment to date.