Frasers Logistics & Commercial Trust (BUOU) Q1 2025 earnings summary

Executive summary

• Achieved positive rent reversions of 31.3% (incoming vs outgoing) and 41.8% (average vs average) for Q1 FY2025, with ~175,000 sqm leased and portfolio occupancy at 94.3% as of 31 December 2024.

• Portfolio expanded to 114 properties valued at S$6.8 billion, with 106 logistics & industrial assets comprising 72.4% of total value across five developed countries.

• Maintained a 5-star GRESB rating and over 87% of portfolio by GFA is green certified or pursuing certification.

Financial highlights

• Aggregate leverage increased to 36.2% as of 31 December 2024, up from 33% last year, mainly due to debt-funded acquisition, distribution payment, and FX movements.

• Trailing 12-month borrowing costs at 2.9%, with interest coverage ratio at 4.9 times.

• Over S$750 million of undrawn facilities available and S$433 million debt headroom to 40% leverage.

Outlook and guidance

• Demand for logistics & industrial properties remains strong, driven by ESG preferences, supply chain resilience, e-commerce growth, and demographic trends, especially in Australia.

• Interest rate and Forex volatility expected to persist and impact results in FY2025.

• Focus on optimizing portfolio through potential divestment of non-core office assets.