Broker: CGS International
Date of Report: November 7, 2025
Excerpt from CGS International report.
- Frasers Logistics & Commercial Trust (FLCT) reported solid results for 2H/FY9/25, with distributable income slightly above forecasts despite a 10.6% year-on-year decline due to higher finance costs and lower capital distribution top-up.
- Portfolio occupancy improved to 95.1%, especially in Logistics & Industrial (L&I) segment, with positive rental reversions and strong balance sheet, supporting a target price of S\$1.10 and an Add rating, though dividend expectations for FY26-27 were slightly reduced.
- FLCT continues to focus on proactive asset management, increasing its L&I portfolio, and advancing ESG initiatives, including net zero emissions targets and high rates of green building certification.
- Risks include inability to make accretive acquisitions and macroeconomic challenges affecting occupancy and rent pricing, but key upside catalyst remains accretive new acquisitions.
- Dividend yield for FY26F is projected at 5.6%, and the REIT’s leverage and cost of borrowing remain within manageable levels.
- FLCT received high ESG ratings, including a 5 Star rating in GRESB for the eighth consecutive year, and continues to increase renewable energy use and reduce emissions.
above is an excerpt from a report by CGS International. Clients of CGS International can be the first to access the full report from the CGS International website : https://www.cgs-cimb.com
