FLCT Records Positive Q3 Rental Reversions, Led by Logistics and Industrial Portfolio
SINGAPORE – Frasers Logistics & Commercial Trust (FLCT) posted positive rental reversions for the third quarter ended 30 June, supported by the strong performance of its logistics and industrial (L&I) portfolio.
The trust recorded rental reversions of 8.2% on an incoming versus outgoing basis during the quarter. On an average versus average basis, rental reversions reached 17.9%, reflecting continued leasing momentum across its portfolio.
The positive performance was primarily driven by the L&I segment, which achieved rental reversions of 11.9% on an incoming versus outgoing basis and 23.8% on an average versus average basis.
FLCT’s manager said it continues to see attractive opportunities in the logistics and industrial sector, supported by resilient structural demand and favourable long-term market fundamentals.
FLCT’s commercial portfolio recorded a marginal rental reversion decline of 0.3% on an incoming versus outgoing basis during the third quarter. However, on an average versus average basis, the segment achieved a positive rental reversion of 4.5%.
For the first nine months of FY2026, the trust delivered overall rental reversions of 9.3% on an incoming versus outgoing basis and 23.2% on an average basis, reflecting continued leasing strength across its portfolio.
As at 30 June, FLCT’s portfolio occupancy remained healthy at 96.1%, with 114 logistics & industrial and commercial properties valued at approximately S$7.1 billion. The portfolio’s weighted average lease expiry (WALE) stood at 4.9 years, comprising 4.7 years for logistics and industrial assets and 5.2 years for commercial properties.
The trust’s aggregate leverage increased slightly to 35.4%, while its weighted average debt maturity remained at three years. Total gross borrowings stood at S$2.5 billion as at end-June. FLCT also has S$526 million in undrawn committed credit facilities, providing sufficient liquidity to meet the S$80 million of debt maturing in the fourth quarter of FY2026.
Earlier in July, unitholders approved FLCT’s S$441.5 million acquisition of four freehold logistics properties, comprising two assets in Germany and two in the Netherlands. The acquisition is expected to enhance the trust’s distribution per unit (DPU) while strengthening its presence in two of Europe’s most resilient and trade-focused logistics markets.
Looking ahead, FLCT’s manager remains optimistic about the logistics and industrial sector, citing resilient structural demand and ongoing global supply chain realignment as key growth drivers. However, the trust continues to monitor external risks, including volatile energy prices, potential oil supply disruptions, persistent inflation and foreign exchange fluctuations.
FLCT will continue focusing on high-specification properties across developed markets, while structuring leases to meet tenants’ operational needs and incorporating inflation-linked protection where appropriate.
FLCT units closed unchanged at S$1.00 on Thursday before the business update was released.
