Frasers Logistics & Industrial Trust's DPU up to 1.75 S cents
Thanks to lower expenses.
Frasers Logistics & Industrial Trust (FLT) reported its 2Q17 results which slightly exceeded expectations.
According to OCBC Investment Research, FLT's gross revenue came in at A$40.9m whilst DPU clocked in at 1.75 S cents. Its actual property operating expenses came in 2.3% below what is expected. Meanwhile, its net property income was 2.4% higher than forecast at A$34.5 million.
For 1H17, FLT’s gross revenue and DPU of A$80.6m and 3.49 S cents.
"Operationally, FLT’s portfolio occupancy remained high at 99.3%, while WALE is healthy at 6.7 years. Looking ahead, we expect FLT’s portfolio to remain resilient, as it only has 0.2% and 3.6% of lease expiries (by gross rental income) for the remainder of FY17 and FY18, respectively. In terms of financial position, FLT has a low gearing ratio 28.9%, as at 31 Mar 2017," OCBC Investment Research said.