Key Points
- FLT’s share price has gained 12.4% year-to-date in 2023, outperforming the FTSE Straits Times REIT Index’s 3.8% gain.
- The trust’s strong performance has been driven by its exposure to the resilient industrial property sector, which has benefited from the growth of e-commerce and the continued expansion of the logistics industry.
- FLT’s portfolio of high-quality industrial properties in Singapore, Australia, and Europe has also contributed to its strong performance.
Introduction
Frasers Logistics & Industrial Trust (FLT) is a leading real estate investment trust (REIT) in Asia-Pacific. The trust invests in a diversified portfolio of industrial properties across Singapore, Australia, and Europe. FLT’s share price has outperformed the FTSE Straits Times REIT Index in recent years, due to its exposure to the resilient industrial property sector.
Factors Driving FLT’s Share Price Growth
There are several factors that have contributed to FLT’s strong share price performance in 2023. These include:
- Resilient industrial property sector: The industrial property sector has been resilient to the economic challenges posed by the COVID-19 pandemic. The growth of e-commerce and the continued expansion of the logistics industry have driven demand for industrial space. This has led to increased rental rates and occupancy levels for industrial properties, which has benefited FLT’s portfolio.
- High-quality portfolio of properties: FLT owns a portfolio of high-quality industrial properties in Singapore, Australia, and Europe. These properties are located in strategic locations and are leased to a diverse range of tenants. The trust’s portfolio is also well-diversified across different industries, which reduces its exposure to any one sector.
- Strong management team: FLT is managed by a experienced management team with a track record of success. The team has a deep understanding of the industrial property sector and has been able to identify and acquire high-quality properties for the trust.
Benefits of Investing in FLT
There are several benefits to investing in FLT, including:
- Exposure to the resilient industrial property sector: The industrial property sector is expected to continue to grow in the coming years, driven by the growth of e-commerce and the continued expansion of the logistics industry. This will benefit FLT’s portfolio and provide investors with stable rental income.
- High dividend yield: FLT offers a high dividend yield, which is attractive to investors looking for income. The trust’s dividend yield is currently around 6.0%, which is higher than the average yield for REITs in Singapore.
- Potential for capital appreciation: FLT’s share price has outperformed the FTSE Straits Times REIT Index in recent years, due to its strong portfolio and management team. The trust has the potential to deliver further capital appreciation for investors in the coming years.
Table of FLT’s Key Performance Indicators
The following table shows FLT’s key performance indicators for the first half of 2023:
| Key Performance Indicator | Value |
|---|---|
| Net property income | S$160.1 million |
| Distributable income | S$124.3 million |
| Distribution per unit | S$0.0663 |
| NAV per unit | S$1.375 |
| Gearing ratio | 34.6% |
Table of FLT’s Net Property Income by Country
The following table shows FLT’s net property income by country for the first half of 2023:
| Country | Net Property Income (S$ million) |
|---|---|
| Singapore | 99.8 |
| Australia | 54.3 |
| Europe | 6.0 |
| Total | 160.1 |
Table of FLT’s Top 10 Tenants
The following table shows FLT’s top 10 tenants by gross rent as at 30 June 2023:
| Tenant | Gross Rent (S$ million) |
|---|---|
| Amazon | 21.6 |
| DHL | 15.3 |
| FedEx | 12.1 |
| UPS | 9.8 |
| SF Express | 8.5 |
| CEVA Logistics | 7.4 |
| Kuehne + Nagel | 6.9 |
| Kerry Logistics | 6.2 |
| Toll Group | 6.0 |
| APL Logistics | 5.9 |
Conclusion
FLT is a leading REIT in Asia-Pacific with a strong portfolio of industrial properties in Singapore, Australia, and Europe. The trust has benefited from the resilient industrial property sector and the growth of e-commerce. FLT’s high dividend yield and potential for capital appreciation make it an attractive investment for investors looking for income and growth.
