Frasers Logistics & Commercial Trust (BUOU) Q4 2024 earnings summary

Executive summary

• FY2024 revenue rose 6.2% year-over-year to S$446.7 million, with adjusted net property income up 2.7% to S$320.0 million.

• Distributable income declined 2.6% to S$255.5 million, and DPU fell 3.4% to 6.80 Singapore cents, yielding 5.9% as of 30 September 2024.

• Portfolio comprises 112 properties valued at S$6.8 billion, with 94.5% occupancy and a WALE of 4.2 years.

• Strong rental reversions: +23.6% overall, +38.8% for logistics & industrial segment; average rental reversion of +12.8% (incoming vs. outgoing rent).

• Maintained 5-star GRESB rating for the eighth consecutive year and named Global Listed Sector Leader 2024.

Financial highlights

• 2HFY24 revenue up 8.4% year-over-year to S$230.6 million; adjusted net property income up 3.7% to S$161.3 million.

• Distributable income for 2HFY24 was S$124.9 million, down 5.1% year-over-year.

• Net change in fair value of investment properties was a loss of S$40.8 million, significantly less negative than FY2023.

• Aggregate leverage increased to 33.0%; NAV per unit decreased 3.4% year-over-year to S$1.13.

• DPU for 2HFY24 was 3.32 Singapore cents, with a total FY2024 DPU of 6.80 Singapore cents.

Outlook and guidance

• Sustained demand for quality logistics properties, with occupiers prioritizing strategic locations and modern facilities.

• Geopolitical and inflationary pressures drive supply-chain resilience and support warehouse demand.

• Interest rates and FX volatility remain key risks impacting financial performance.

• Focus remains on expanding logistics & industrial exposure and prudent capital management.

• The REIT Manager will continue to pursue investment opportunities to enhance portfolio resilience.