Frasers Logistics & Commercial Trust (BUOU) investor relations material

Executive summary

• Distributable income for H1 FY2026 reached S$111.9 million, with DPU at 2.95 Singapore cents, annualized yield of 6.6% based on unit price as of March 31, 2026.

• Revenue and adjusted net property income increased year-over-year, driven by positive rental reversions, annual rent increments, and favorable FX rates, partially offset by divestments and higher vacancies in select assets.

• Portfolio occupancy rate stood at 96.1%, with a 4.9-year WALE and strong rent reversions in logistics and industrial segments.

• Portfolio remains diversified across five developed countries, with 113 properties and a total value of S$7.0 billion as of 31 March 2026.

• Maintained a strong focus on sustainability, with over 90% of the portfolio green-certified or pursuing certification and a 5-Star GRESB rating.

Financial highlights

• Revenue rose 2.8% to S$238.9 million and adjusted net property income increased 3.6% to S$167.0 million year-over-year for 1HFY26.

• DPU before capital distribution-divestment gains was 2.82 Singapore cents, up 11.9% year-over-year; total DPU was 2.95 cents.

• Investment property value rose 1.6% to S$7.1 billion, mainly due to forex gains from AUD and capital expenditures.

• Net asset value per unit was S$1.12 as of 31 March 2026.

• Aggregate leverage stood at 33.7% and cost of borrowing averaged 3.2% on a trailing 12-month basis.

Outlook and guidance

• Market transitioning from scarcity-driven to quality-driven, with prime assets expected to outperform.

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

• Occupier decision-making remains cautious, especially in Australia due to capacity constraints and rising costs.

• European demand stabilizing as development pipeline shrinks; vacancy expected to peak by 2026.

• Manager remains prudent, focusing on risk mitigation from high interest rates, inflation, and FX volatility.