Frasers Logistics & Commercial Trust (BUOU) Q3 2025 earnings summary

Executive summary

• Portfolio occupancy rate stood at 92.5% as of June 30, with a WALE of 4.6 years and positive rental reversions across both logistics & industrial and commercial segments.

• Portfolio consists of 114 assets valued at S$6.9 billion, diversified across Australia, Germany, the Netherlands, UK, and Singapore.

• Strategic divestment of 357 Collins Street, Melbourne, for A$192.1 million post-quarter, marks a strategic exit from the CBD office market, enhancing focus on logistics & industrial assets and improving portfolio metrics and financial flexibility.

Financial highlights

• Aggregate leverage stands at 36.8%, with pro-forma gearing at 35.4% post-divestment.

• Cost of borrowings averaged 3.1% over the trailing 12 months, with a slight uptick to 3.2% for the recent quarter.

• Total borrowings are SGD 2.5 billion, with SGD 209 million in undrawn facilities and SGD 103 million in debt due in Q4.

• Interest coverage ratio at 4.1x, with 67.3% of borrowings at fixed rates.

Outlook and guidance

• Proceeds from the 357 Collins Street divestment will be used to pursue high-quality logistics & industrial opportunities.

• Demand for logistics space remains robust, driven by population growth, e-commerce, and supply chain resilience, especially in Australia.

• Market uncertainties, grid constraints, and cautious expansion by logistics providers may delay major investment decisions.

• Continued focus on prudent financial management amid uncertain interest rate environment.