Update On Frasers Logistics Trust
Frasers Logistics Trust is a REIT listed at SGX.
All of Frasers Logistics Trust (FLT)'s properties are located in Australia, where the dynamics are different than those in Singapore. Moreover Australia dollar has been appreciating against Singapore dollar.
CEO of FLT said "FLT is a pretty clean story: long leases, good assets. We are quite prolific consumers in Australia and population is growing. Melbourne is growing at about 100,000 people a year, Sydney about 60,000 people a year."
The portfolio's occupancy had improved to 99.30% as at 31Dec2016 from 98.3% at listing.
Its weighted average lease to expiry (WALE) has lengthened to 6.9 years, up from 6.6 years at listing.
Total value of FLT's portfolio increased 8.8% since IPO to AUD1.74bil as at 31Dec2016.
FLT's largest tenant is Coles, which accounts for 14.2% of its total rental income and has a WALE of 11.8 years. Coles is opening 20 to 25 supermarkets a year in Australia. They need distribution centres to do that.
FLT's second largest tenant is Schenker, which contributes about 4.5% of its rental income and has a WALE of 7.9 years.
CEVA Logistics has a WALE of 9.5 years and contributes 4.1% of total rental income.
FLT CEO said "We believe that FLT remains attractive with a prospective yield of close to 7%. With an under geared balance sheet, FLT has the ability to surprise upside through acquisitions."
Main risk for this REIT:
If FLT's tenant choose not to renew their leases. Another risk is if Reserve Bank of Australia decides to raise cash rates, it will impact interest cost for the REIT.
Information from The Edge.
Chart from Bloomberg
All of Frasers Logistics Trust (FLT)'s properties are located in Australia, where the dynamics are different than those in Singapore. Moreover Australia dollar has been appreciating against Singapore dollar.
CEO of FLT said "FLT is a pretty clean story: long leases, good assets. We are quite prolific consumers in Australia and population is growing. Melbourne is growing at about 100,000 people a year, Sydney about 60,000 people a year."
The portfolio's occupancy had improved to 99.30% as at 31Dec2016 from 98.3% at listing.
Its weighted average lease to expiry (WALE) has lengthened to 6.9 years, up from 6.6 years at listing.
Total value of FLT's portfolio increased 8.8% since IPO to AUD1.74bil as at 31Dec2016.
FLT's largest tenant is Coles, which accounts for 14.2% of its total rental income and has a WALE of 11.8 years. Coles is opening 20 to 25 supermarkets a year in Australia. They need distribution centres to do that.
FLT's second largest tenant is Schenker, which contributes about 4.5% of its rental income and has a WALE of 7.9 years.
CEVA Logistics has a WALE of 9.5 years and contributes 4.1% of total rental income.
FLT CEO said "We believe that FLT remains attractive with a prospective yield of close to 7%. With an under geared balance sheet, FLT has the ability to surprise upside through acquisitions."
Main risk for this REIT:
If FLT's tenant choose not to renew their leases. Another risk is if Reserve Bank of Australia decides to raise cash rates, it will impact interest cost for the REIT.
Information from The Edge.
Chart from Bloomberg
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