not vested
Frasers Logistics & Commercial Trust (FLT SP) - Standing firm
Frasers Logistics & Commercial Trust’s (FLCT) recent 3QFY20 business update gave us confidence that its operational performance and outlook remains largely resilient despite a challenging macro landscape.
NPI and distributable income jumped 77.0% and 61.1% YoY to S$78.0m and S$61.1m, respectively, due largely to the consolidation of Frasers Commercial Trust (FCOT) following the merger completion.
NAV/unit grew 13.0% to S$1.04 from end-FY19 level.
Although not disclosed, we estimate that DPU was up ~3% YoY to 1.79 S cents.
Separately, FLT announced the proposed acquisitions of a logistics property in Melbourne and a business park in UK, and also a proposed divestment in Brisbane.
We believe these capital recycling activities would help to unlock value for unitholders.
After adjustments, we derive a higher fair value of S$1.59 (previously S$1.31). BUY.
Source: OCBC