Frasers Logistics & Commercial Trust (BUOU) Q3 2024 earnings summary

Executive summary

• Delivered robust operating performance in 3Q FY2024, anchored by strong leasing momentum and positive rental reversions across key markets.

• Portfolio occupancy improved to 95%, with 90,000 sq m leased or renewed during the quarter, and year-to-date leasing totaling around 233,000 sq m.

• Portfolio consists of 112 properties valued at S$6.9 billion across five developed countries, with logistics and industrial assets making up over 70% by value.

Financial highlights

• Aggregate leverage as of 30 June 2024 stands at 33.2%, among the lowest in the top 10 S-REITs by market capitalization.

• Interest coverage ratio was 5.7x, with significant debt headroom of S$793 million to reach a 40% leverage level.

• Trailing 12-month cost of borrowings rose slightly to 2.6%; trailing 3-month cost of debt for 3Q FY2024 is 2.8%.

• 72.6% of borrowings are hedged at fixed rates; 57% of borrowings are green or sustainability-linked.

Outlook and guidance

• Sustained demand for quality, core, and sustainable properties expected, with occupiers prioritizing strategic locations and sustainability credentials.

• Gradual monetary easing anticipated as inflation and recession risks subside, potentially boosting investment confidence.

• Digitalization and AI identified as key mega trends influencing logistics and industrial sectors.