Saturday, September 09, 2023

Frasers Logistics & Commercial Trust – Dividend yield = 6%

The Europe- and Australia-focused Frasers Logistics & Commercial Trust (SGX: BUOU) owns 107 logistics & industrial (L&I) as well as commercial properties.

Valued at a total of S$6.9 billion, 99 of these properties are in the L&I segment meaning the REIT is primarily focused in the industrial space.

Frasers Logistics & Commercial Trust, also known as FLCT, saw an overall positive rental reversions of +9.8% (on an incoming vs outgoing basis) in Q3 FY2023 (for the three months ended 30 June 2023).

It has a low gearing ratio of just 28.6% and its cost of borrowing is also relatively low at just 2.0%. Its low gearing means the REIT has debt headroom of around S$3 billion to make accretive acquisitions if it wants.

At its current share price, FLCT shares are offering investors a 12-month forward dividend yield of 6%.

With commercial and retail properties that span Singapore, Hong Kong, China, South Korea, and Japan, the REIT’s share price is down around 12% so far in 2022.

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