Frasers Logistics & Commercial Trust (BUOU) Q2 2025 earnings summary

Executive summary

• Revenue for 1HFY25 rose 7.5% year-over-year to S$232.3 million, driven by new property completions and acquisitions, but net property income growth was limited by higher expenses and vacancies.

• Distributable income declined between 13.5% and 18.9% year-over-year, reaching S$113.0 million or S$95.0 million, mainly due to higher finance costs, tax expenses, and adverse Forex movements.

• Distribution per unit (DPU) for 1HFY25 was 3.00 Singapore cents, down 13.8% year-over-year, with an annualised yield of 6.5%–6.7%.

• Portfolio occupancy stands at 93.9%, with L&I at 99.6% and commercial at 84.1%.

• ESG progress includes 15.1 MW solar capacity and over 90% of the portfolio green certified.

Financial highlights

• Adjusted Net Property Income increased 1.6% year-over-year to S$161.3 million.

• Finance costs surged 35% year-over-year to S$39.4 million due to higher borrowings and interest rates.

• Net asset value per unit declined 4.4% year-over-year to S$1.08, mainly due to Forex translation losses.

• Aggregate leverage increased to 36.1%, with S$447 million headroom to the 40% limit.

• Interest coverage ratio at 4.5x; cost of borrowings at 3.0% per annum.

Outlook and guidance

• Strategic focus remains on growing the resilient L&I segment and potential divestment of non-core office assets.

• Manager remains cautious amid global low growth, volatile rates, and persistent inflationary pressures.

• Market uncertainties, interest rate volatility, and Forex risks are expected to persist through FY2025.

• E-commerce and supply chain resilience trends support selective demand for modern logistics assets.

• Office and commercial segments face subdued demand and high vacancies, especially in Singapore and Melbourne.