FLCT Records Positive Q3 Rental Reversions, Led by Its Logistics and Industrial Portfolio
Frasers Logistics & Commercial Trust (FLCT) reported positive rental reversions for the third quarter ended 30 June 2026. Its logistics and industrial portfolio drove the strong results.
FLCT Reports Positive Q3 Rental Reversions
FLCT recorded rental reversions of 8.2% during the quarter. This figure compares incoming rents with outgoing rents. On an average-to-average basis, rental reversions reached 17.9%. These results show continued leasing demand across the portfolio.
Logistics and Industrial Portfolio Leads Growth
FLCT’s logistics and industrial (L&I) portfolio led the growth. The segment achieved rental reversions of 11.9% on an incoming-to-outgoing basis. On an average-to-average basis, the rate reached 23.8%.
FLCT’s manager sees attractive opportunities in this sector. Resilient demand and favourable long-term market conditions continue to support growth.
The commercial portfolio recorded a slight rental reversion decline of 0.3% on an incoming-to-outgoing basis. However, the segment achieved positive rental reversions of 4.5% on an average-to-average basis.
For the first nine months of FY2026, FLCT recorded overall rental reversions of 9.3% on an incoming-to-outgoing basis. The average-to-average figure reached 23.2%.
Portfolio Occupancy and Lease Expiry
As at 30 June 2026, FLCT maintained a healthy portfolio occupancy rate of 96.1%. Its portfolio included 114 logistics, industrial and commercial properties worth about S$7.1 billion.
The weighted average lease expiry (WALE) stood at 4.9 years. Logistics and industrial properties recorded a WALE of 4.7 years. Commercial properties recorded 5.2 years.
Debt Position and Available Funding
FLCT’s aggregate leverage rose slightly to 35.4%. Its weighted average debt maturity remained at three years.
At the end of June, gross borrowings totalled S$2.5 billion. FLCT also held S$526 million in undrawn committed credit facilities. These facilities provide funding flexibility for the S$80 million of debt due in the fourth quarter of FY2026.
FLCT Expands Its European Logistics Portfolio
In July, unitholders approved FLCT’s S$441.5 million acquisition of four freehold logistics properties. Two properties are in Germany and two are in the Netherlands.
The acquisition aims to enhance FLCT’s distribution per unit (DPU). It will also strengthen the trust’s presence in two European markets with strong trade and logistics activity.
Outlook for the Logistics and Industrial Sector
FLCT’s manager remains optimistic about the logistics and industrial sector. Resilient demand and changes in global supply chains continue to support its outlook.
However, FLCT continues to monitor several external risks. These include volatile energy prices, possible oil supply disruptions, persistent inflation and foreign exchange fluctuations.
The trust will focus on high-specification properties in developed markets. It also plans to structure leases around tenants’ operational needs. Where suitable, FLCT will include inflation-linked protection in its leases.
FLCT units closed unchanged at S$1.00 on Thursday before the business update was released.
