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20 Key Numbers for a Deeper Understanding of Frasers Logistics and Industrial Trust

Frasers Logistics and Industrial Trust (SGX: BUOU) is a real estate investment trust (REIT) listed in Singapore with logistics and industrial properties. The REIT’s sponsor is Frasers Property Ltd (SGX: TQ5).

At the end of December 2018, the REIT released its annual report for the full year ended 30 September 2018 (FY2018). Here are some key figures from the report to give investors a deeper understanding of the REIT.

Where does the REIT make money from?

The REIT’s portfolio of 82 properties, as of 30 September 2018, is concentrated in major logistics and industrial markets of Australia, Germany and the Netherlands. The properties are mostly on freehold and long leasehold land tenures – 70% of the properties sit on freehold land, 21.6% are on more than 80-year leasehold while 8.3% have other leaseholds.

With a total gross lettable area (GLA) of 1.95 million square metres, Frasers Logistics and Industrial Trust’s portfolio was valued at about A$3.0 billion at the end of FY2018. The portfolio occupancy rate stood at 99.6% with a weighted average lease expiry of 6.87 years.

70.4% of the portfolio by GLA are properties under 10 years of age, and this benefits the REIT due to their lower capital expenditure requirements.

How much money did the REIT make?

Revenue for Frasers Logistics and Industrial Trust in FY2018 was A$195.8 million, a rise of 20.1% from A$163.1 million in FY2017.

The higher revenue was mainly due to 1) the acquisition of 21 industrial properties in Germany and the Netherlands in May 2018; 2) an increase in revenue from the practical completion of Beaulieu facility, Stanley Black & Decker facility, and Clifford Hallam facility; and 3) revenue contribution from 103 -131 Wayne Goss Drive and 3 Burilda Close.

Likewise, net property income for FY2018 was A$161.8 million, an increase of 20.8% from A$134.0 million in FY2017.

As of 30 September 2018, Frasers Logistics and Industrial Trust had a healthy gearing ratio of 34.6% and an interest coverage ratio of 7.1 times. The REIT’s net asset value per share at the end of FY2018 stood at A$0.95, up from A$0.88 clocked in a year ago.

How much did unitholders get?

Distributable income for FY2018 was A$118.3 million, an increase of 16.6% compared to A$101.5 million in FY2017. The income includes A$2.0 million from the gain on divestments in FY2018.

Distribution per unit (DPU) for the year came in at 7.19 Singapore cents, up 2.6% from 7.01 Singapore cents seen in FY2017. The smaller percentage increase in DPU compared to the rise in distributable income was mainly due to a higher unit base in FY2018, following the private placement and preferential offering to finance the German and Dutch logistics portfolio acquisition.

Frasers Logistics and Industrial Trust’s current unit price is at S$1.03. At that price, the REIT is selling at a price-to-book ratio of 1.1 and a distribution yield of 7%.

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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. Motley Fool Singapore contributor Sudhan P doesn’t own shares in any companies mentioned.