Company Coverage
Frasers Logistics & Commercial Trust (FLT SP): Scaling Up In Europe By Tapping On Sponsor Pipeline
BUY (Maintained)
Current price:
Target price:
Upside:
S$0.99
S$1.33
+34.3%
Analyst
Highlights
- The logistics portfolio maintained near-full occupancy at 99.7% as of Jun 26. It generated positive rental reversion of 11.9% on an incoming-versus outgoing basis (Sydney: 8.8%, Melbourne: 29% and Germany: 3%).
- The acquisition of four freehold logistics properties in Europe for €294.9m (S$441.5m) is expected to be 1.7% DPU accretive. The four properties are strategically located near major transport infrastructure.
- FLT’s resiliency is reflected in near-full occupancies for its logistics properties in Australia and Europe. Maintain BUY. Target price: S$1.33.
Analysis
- Frasers Logistics & Commercial Trust (FLT) delivered resilient operating performance for its 3QFY26 business update.
- Logistics: Sustained positive leasing momentum. The logistics portfolio maintained near-full occupancy at 99.7% as of Jun 26. Europe and the UK maintained full occupancy while Singapore logistics occupancy improved 0.7ppt qoq to 95.0% in 3QFY27. FLT completed 13 logistics leases covering 132,489sqm and achieved rental reversion of 11.9% on an incoming-versus outgoing basis (Singapore: 17.4%, Sydney: 8.8%, Melbourne: 29%, Germany: 3% and Netherlands: 10%) and 23.8% on an average-versus-average basis in 3QFY26. FLT benefits from supply chain resilience, e-commerce adoption and limited new supply in its core markets.
- Commercial: Progressively backfilling vacant space. Occupancy for the commercial portfolio was stable at 88.4% as of Jun 26. Occupancy at Alexandra Technopark (ATP) was stable at 85.3%, while occupancy at Central Park improved 1.2ppt qoq to 96.3%. FLT completed 17 commercial leases covering 14,120sqm, recording a modest negative reversion of 0.3% on an incoming-versus-outgoing basis but positive at 4.5% on an average-versus average basis, largely due to leasing at Alexandra Technopark.
- FLT’s portfolio remains well diversified across five developed markets with a WALE of 4.9 years (top 10 tenants: 5.8 years).
Highlights
- The logistics portfolio maintained near-full occupancy at 99.7% as of Jun 26. It generated positive rental reversion of 11.9% on an incoming-versus outgoing basis (Sydney: 8.8%, Melbourne: 29% and Germany: 3%).
- The acquisition of four freehold logistics properties in Europe for €294.9m (S$441.5m) is expected to be 1.7% DPU accretive. The four properties are strategically located near major transport infrastructure.
- FLT’s resiliency is reflected in near-full occupancies for its logistics properties in Australia and Europe. Maintain BUY. Target price: S$1.33.
Analysis
- Frasers Logistics & Commercial Trust (FLT) delivered resilient operating performance for its 3QFY26 business update.
- Logistics: Sustained positive leasing momentum. The logistics portfolio maintained near-full occupancy at 99.7% as of Jun 26. Europe and the UK maintained full occupancy while Singapore logistics occupancy improved 0.7ppt qoq to 95.0% in 3QFY27. FLT completed 13 logistics leases covering 132,489sqm and achieved rental reversion of 11.9% on an incoming-versus outgoing basis (Singapore: 17.4%, Sydney: 8.8%, Melbourne: 29%, Germany: 3% and Netherlands: 10%) and 23.8% on an average-versus-average basis in 3QFY26. FLT benefits from supply chain resilience, e-commerce adoption and limited new supply in its core markets.
- Commercial: Progressively backfilling vacant space. Occupancy for the commercial portfolio was stable at 88.4% as of Jun 26. Occupancy at Alexandra Technopark (ATP) was stable at 85.3%, while occupancy at Central Park improved 1.2ppt qoq to 96.3%. FLT completed 17 commercial leases covering 14,120sqm, recording a modest negative reversion of 0.3% on an incoming-versus-outgoing basis but positive at 4.5% on an average-versus average basis, largely due to leasing at Alexandra Technopark.
- FLT’s portfolio remains well diversified across five developed markets with a WALE of 4.9 years (top 10 tenants: 5.8 years).
BUY (Maintained)
Current price:
Target price:
Upside:
S$0.99
S$1.33
+34.3%
Analyst
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