Frasers Logistics & Commercial Trust (BUOU) H2 2026 earnings summary

Executive summary

• FY2026 revenue rose 4.8% to S$494.074m and adjusted net property income increased 6.6% to S$347.600m; distributable income before divestment-gain capital distributions rose 10.0% to S$216.438m.

• FY2026 DPU was 5.90 cents, including 0.20 cents of divestment-gain capital distributions; DPU before those distributions rose 9.4% to 5.70 cents, from 5.95 cents total DPU in FY2025.

• Portfolio occupancy was 96.2%, WALE was 4.9 years and aggregate leverage was 39.2% at 30 September 2026.

• FY2026 rent reversions were 10.4% incoming versus outgoing and 24.0% average versus average.

Financial highlights

• FY2026 finance costs increased 4.6% to S$86.844m; higher borrowing rates after refinancing and acquisition-related debt partly offset operating growth.

• 2HFY26 revenue rose 6.7% to S$255.166m and adjusted net property income increased 9.6% to S$180.605m; finance costs rose 8.2% to S$47.106m.

• 2HFY26 distributable income was S$112.543m and DPU was 2.95 cents, including S$3.0m of capital distributions; DPU before those distributions rose 7.1% to 2.88 cents.

• FY2026 capital distributions declined 71.3% to S$8m; 2HFY26 distributable income before divestment-gain distributions increased 7.6% to S$109.5m.

Outlook and guidance

• At least 75% of management fees are expected to be taken in units in FY2027; barring unforeseen circumstances, divestment-gain capital distributions are targeted at no more than 5% of total DPU.

• Strategy prioritises modern, high-specification assets in established logistics hubs and growing the L&I portfolio share toward 85%; capital recycling proceeds are intended for accretive L&I opportunities.

• FY2027 borrowing costs are expected to rise due to variable-rate debt exposure and refinancing; interest-rate and FX risks will be actively mitigated where practicable.

• Prime Singapore logistics rents are expected to grow at a measured pace into 2027 amid inflation concerns and occupier cost sensitivity.