Frasers L&C Tr    Last:0.99   -

Frasers Logistic & Industrial Trust IPO

3Q results will be announced on 31 July next Friday will it be good?

 

most importantly, it must not reduce it' s earnings 
Otherwise, selling pressures will come out in full force 
this point need to take note
 

 

The SREITs diversifying out of Singapore into Australia made a mistake. They went into a market they understood less well, and a market that was not as strong as perhaps they thought it was. The result was diluting the strength of being Singaporean. 

 

 

 

Bought the office at AUD 237m, sold it at AUD 192m. FX also loss.

👎

 

Thank you, superstartup,...... I browsed thru some materials and presentation slides, nothing around for us to do an intelligent guess on when will the loan interest rate peak. But there is one more ' new' problem. Mgmt is beginning to take their fees in cash. They used to take 100% of their fees in units in FY24.

superstartup      ( Date: 09-May-2025 17:44) Posted: I believe the exact details are not publicly available. However, a few brokerage firms had stated along the following :  " Management guided that its average funding cost is likely to rise to mid-3% post refinancing the remaining S$395m of debt maturing in 4QFY25F." I suppose the guidance was provided at the usual result / analysts  briefing as I don' t seem to read about it from the company announcement. But I stand to be corrected. chengwh1      ( Date: 09-May-2025 16:09) Posted: All their earlier loan packages need to be refinanced to the current rate first, then only will their distributable income (DI) starts to stabilize and not experience anymore year-on-year drops. DI stabilizing will cause dpu payout to stabilize too. How do we find out when will the last loan packages at the earlier lower rates be refinanced

 

I believe the exact details are not publicly available.

However, a few brokerage firms had stated along the following :  " Management guided that its average funding cost is likely to rise to mid-3% post refinancing the remaining S$395m of debt maturing in 4QFY25F."

I suppose the guidance was provided at the usual result / analysts  briefing as I don' t seem to read about it from the company announcement. But I stand to be corrected.

chengwh1      ( Date: 09-May-2025 16:09) Posted: All their earlier loan packages need to be refinanced to the current rate first, then only will their distributable income (DI) starts to stabilize and not experience anymore year-on-year drops. DI stabilizing will cause dpu payout to stabilize too. How do we find out when will the last loan packages at the earlier lower rates be refinanced ? superstartup      ( Date: 09-May-2025 12:37) Posted: This reit has one of the lowest cost of debt over the last 2 to 3 years. As their loans were properly hedged at the right timing then. Hence the rising interest rate environment did not hit them as hard as other reits over the last few years in term of cost of debt. However, the high interest rate environment persists, and with the hedging running out (expired), the cost of refinancing shoot up. Even as of now, their cost of Debt is still relatively low which is " not good" as this year financing will be done at much higher rate now. Another impact is China. Those avoiding China usually avoid this reit too, as Australia economy relied on China a lot.

 

All their earlier loan packages need to be refinanced to the current rate first, then only will their distributable income (DI) starts to stabilize and not experience anymore year-on-year drops. DI stabilizing will cause dpu payout to stabilize too. How do we find out when will the last loan packages at the earlier lower rates be refinanced ?

superstartup      ( Date: 09-May-2025 12:37) Posted: This reit has one of the lowest cost of debt over the last 2 to 3 years. As their loans were properly hedged at the right timing then. Hence the rising interest rate environment did not hit them as hard as other reits over the last few years in term of cost of debt. However, the high interest rate environment persists, and with the hedging running out (expired), the cost of refinancing shoot up. Even as of now, their cost of Debt is still relatively low which is " not good" as this year financing will be done at much higher rate now. Another impact is China. Those avoiding China usually avoid this reit too, as Australia economy relied on China a lot.

 

the occupancy fr the commercial is vry low only 85.5%....aussie dollar also super weak, close to historical low......guess will further downside in the next reporting......dyodd

superstartup      ( Date: 09-May-2025 12:37) Posted: This reit has one of the lowest cost of debt over the last 2 to 3 years. As their loans were properly hedged at the right timing then. Hence the rising interest rate environment did not hit them as hard as other reits over the last few years in term of cost of debt. However, the high interest rate environment persists, and with the hedging running out (expired), the cost of refinancing shoot up. Even as of now, their cost of Debt is still relatively low which is " not good" as this year financing will be done at much higher rate now. Another impact is China. Those avoiding China usually avoid this reit too, as Australia economy relied on China a lot.

 

This reit has one of the lowest cost of debt over the last 2 to 3 years.
As their loans were properly hedged at the right timing then.
Hence the rising interest rate environment did not hit them as hard as other reits over the last few years in term of cost of debt.
However, the high interest rate environment persists, and with the hedging running out (expired), the cost of refinancing shoot up.
Even as of now, their cost of Debt is still relatively low which is " not good" as this year financing will be done at much higher rate now.

Another impact is China. Those avoiding China usually avoid this reit too, as Australia economy relied on China a lot. 

 

Wow... so low now.

 

I had substantial hldgs here too,... my hldg price was a good $1, but even this price is not good enough today. The rental collection (revenue) & npi (adjusted) are good, they are growing year-on-year. So,... the properties seems to be right, but what did you notice, bro ? 

My opinion says the drop in dpu has always been abt the increasing loan expenses for this REIT. The following statement from the Press Release is referred :-
Distributable income for 1HFY25 was correspondingly lower at S$113.0 million, from S$130.7 million in 1HFY24 after taking into account the higher finance costs, higher tax expense and 56.9% of 1HFY25 management fees paid in the form of cash.

And to aggravate the situation, they are now taking more of their fees in cash. When a REIT Mgr starts taking her fees in cash, it will ' lessen' the dpu payout. There willl be justifications, no doubt, to taking fees in cash but not in units, but the net effect is a lower dividend payout to unitholders. So,.. we have to ask : when will the high interest rates start to get neutralised ?

jebuscries      ( Date: 07-May-2025 14:56) Posted: Looks like DPU will continue to come under pressure. Without the capital distribution, the DPU would have fallen below 3 cents.  FLCT has made a number of questionable acquisitions since 2022. SH ought to make Manager accountable. Taking on debt in an high int rate environment buying assets of suspect quality (UK biz parks really?).    FLCT used to have an enviable gearing lower than 30%. In 2022, its DPU was 7.6 cents. Today, DPU is falling below 6 cents, despite FLCT gearing level rising from mid-20% to now approaching 40%,  Shareholders gotta ask whether the current Managers are worth the millions paid to them yearly.

 

Looks like DPU will continue to come under pressure. Without the capital distribution, the DPU would have fallen below 3 cents. 
FLCT has made a number of questionable acquisitions since 2022. SH ought to make Manager accountable. Taking on debt in an high int rate environment buying assets of suspect quality (UK biz parks really?).   
FLCT used to have an enviable gearing lower than 30%. In 2022, its DPU was 7.6 cents. Today, DPU is falling below 6 cents, despite FLCT gearing level rising from mid-20% to now approaching 40%, 
Shareholders gotta ask whether the current Managers are worth the millions paid to them yearly.
 

 

market over reacted. will go back to 0.92.

 

Thank you halleluyah.

halleluyah      ( Date: 07-May-2025 10:43) Posted: 1H DPU drop 13.8%...... guiren      ( Date: 07-May-2025 10:13) Posted: Why dropped so much ?? Can enlightened

 

1H DPU drop 13.8%......

guiren      ( Date: 07-May-2025 10:13) Posted: Why dropped so much ?? Can enlightened? infoshare      ( Date: 29-Apr-2025 16:21) Posted: https://sbr.com.sg/commercial-property/news/flct-maintains-943-occupancy-positive-rent-reversions-in-q1-2025 FLCT maintains 94.3% occupancy with positive rent reversions in Q1 2025 FLCT reported 175,000 sq m of active leases and renewals in Q1 2025. Frasers Logistics & Commercial Trust (FLCT)  has maintained a portfolio occupancy of 94.3% in Q1 2025, with 175,000 sq m of active leases and renewals, achieving overall positive rent reversions. The occupancy rate for its Logistics & Industrial portfolio stood at 99.6%, whilst its Commercial portfolio was at 85.5%. FLCT' s portfolio currently comprises 114 properties across five developed countries, with a total value of $6.8b. Its top 10 tenants, which contribute 25.3% of the portfolio' s gross rental income, include the Commonwealth of Australia, Hermes, Germany, CEVA Logistics, Google, Rio Tinto, BMW, FDM Warehousing, DSV, Commonwealth Bank of Australia, and Techtronic.

 

Why dropped so much ?? Can enlightened?

infoshare      ( Date: 29-Apr-2025 16:21) Posted: https://sbr.com.sg/commercial-property/news/flct-maintains-943-occupancy-positive-rent-reversions-in-q1-2025 FLCT maintains 94.3% occupancy with positive rent reversions in Q1 2025 FLCT reported 175,000 sq m of active leases and renewals in Q1 2025. Frasers Logistics & Commercial Trust (FLCT)  has maintained a portfolio occupancy of 94.3% in Q1 2025, with 175,000 sq m of active leases and renewals, achieving overall positive rent reversions. The occupancy rate for its Logistics & Industrial portfolio stood at 99.6%, whilst its Commercial portfolio was at 85.5%. FLCT' s portfolio currently comprises 114 properties across five developed countries, with a total value of $6.8b. Its top 10 tenants, which contribute 25.3% of the portfolio' s gross rental income, include the Commonwealth of Australia, Hermes, Germany, CEVA Logistics, Google, Rio Tinto, BMW, FDM Warehousing, DSV, Commonwealth Bank of Australia, and Techtronic.

 

https://sbr.com.sg/commercial-property/news/flct-maintains-943-occupancy-positive-rent-reversions-in-q1-2025

FLCT maintains 94.3% occupancy with positive rent reversions in Q1 2025

 

 

Will Frasers L& C Trust lose their STI component status since they have dropped 27.7% from 19 Sep 24? Till then, their price shall drop further to disaster price level.