Frasers Logistics & Commercial Trust (BUOU) Q1 2026 earnings summary

Executive summary

• Achieved 96.2% occupancy rate as of 31 December 2025, up from 95.1% at end-4Q25, with a WALE of 4.9 years and 113 properties valued at S$6.9 billion.

• L&I assets comprise 75.1% of portfolio value, with 99.7% occupancy and strong rental reversions; commercial assets have 89.0% occupancy.

• L&I portfolio fundamentals remain favorable, supported by e-commerce, population growth, and supply chain modernization.

• Sustainability remains a focus, with over 90% of portfolio by GFA green-certified and 19.7 MW of solar capacity installed.

Financial highlights

• Positive rental reversions: 13.4% incoming vs outgoing and 36.4% average vs average for L&I; 10.7% and 29.8% respectively for overall portfolio.

• Aggregate leverage at 34.8%, improved by 0.9 percentage points from previous quarter, with S$592 million debt headroom to 40% leverage.

• Trailing 12-month borrowing costs at 3.1%, with a slight decrease from 3.2% three months ago; 68.6% of borrowings at fixed rates.

• Interest coverage ratio was 4.1x, and portfolio value reached S$6.9 billion.

Outlook and guidance

• No significant revaluation changes expected in L&I portfolio over the next 12 months.

• Focus remains on best-in-class assets in established logistics and industrial hubs with supply constraints.

• Continued emphasis on lease structuring with inflation protection and maintaining a diversified, resilient tenant base.

• Modern, ESG-credentialed facilities in strategic locations expected to remain in demand.

• Macroeconomic headwinds include inflation, gradual interest rate adjustments, and FOREX volatility.