Frasers Logistics & Commercial Trust (BUOU) Q1 2025 earnings summary

Executive summary

• Achieved positive rent reversions of 31.3% (incoming vs outgoing) and 41.8% (average vs average) for the quarter ended 31 December 2024, with strong leasing momentum and ~175,000 sqm leased in 1QFY25.

• Portfolio expanded to 114 properties valued at S$6.8 billion, with 106 in the logistics & industrial segment, representing 72.4% of total assets and value, diversified across five developed countries.

• Portfolio occupancy stands at 94.3%, with logistics & industrial occupancy at 99.6%.

• Maintained a 5-star GRESB rating; over 87% of portfolio by GFA is green certified or pursuing certification; solar capacity at 13.4 MW.

Financial highlights

• Aggregate leverage rose to 36.2% as of 31 December 2024, up from 33% in the previous year, mainly due to debt-funded acquisition, distribution payment, and FX movements.

• Trailing 12-month borrowing costs increased slightly to 2.9%; interest coverage ratio is 4.9 times.

• S$433 million debt headroom to 40% aggregate leverage, with over S$750 million of undrawn facilities available and 70.9% of borrowings at fixed rates.

• SGD 709 million due for refinancing in 2024, with over SGD 715 million of facilities available.

Outlook and guidance

• Demand for logistics & industrial properties remains strong, driven by ESG preferences, supply chain resilience, e-commerce growth, and positive demographic trends, especially in Australia.

• Uncertain interest rate and Forex environments expected to persist and impact results in FY2025.

• Power and land availability are critical for site selection due to rising energy demand.