FLCT logs positive rental reversions in Q1, boosted by logistics and industrial segment

[SINGAPORE] The manager of Frasers Logistics & Commercial Trust (FLCT) recorded positive rental reversions of 10.7 per cent on an incoming versus outgoing basis, in the first quarter ended Dec 31.

On an average versus average basis, the trust booked positive rental reversions of 29.8 per cent, said FLCT in its business update on Tuesday (Feb 3).

The overall positive reversions were driven mainly by its logistics and industrial segment, which logged a 13.4 per cent increase on an incoming versus outgoing basis, and 36.4 per cent on an average basis.

Meanwhile, FLCT’s commercial segment saw negative rental reversions of 3.3 per cent on an incoming versus outgoing basis, and negative 1.6 per cent on an average basis, largely due to the performance of its Singapore asset.

The manager noted that the secured leases for Alexandra Technopark in Singapore stood at about 83 per cent, up from 58 per cent as at Sep 30, 2025.

Excluding committed leases that have yet to commence, occupancy stood at 74.5 per cent. All committed leases will commence no later than Q3 FY2026, said the manager.

In Q1, the trust leased 186,683 square metres of space across its portfolio, with a portfolio occupancy rate of 96.2 per cent.

FLCT’s entire portfolio of 113 logistics and industrial, as well as commercial properties, has a portfolio value of S$6.9 billion.

The weighted average lease expiry of its portfolio stands at 4.9 years overall; 4.7 years for logistics and industrial properties; and 5.2 years for commercial properties.

In terms of capital management, FLCT said it has S$251 million of undrawn committed facilities currently available to meet upcoming debt obligations of S$60 million due in Q2 FY2026. It has an aggregate leverage of 34.8 per cent, with an interest coverage ratio of 4.1 times.

Looking ahead, FLCT sees growing demand for logistics assets driven by e-commerce growth and population expansion.

Demand is also supported by near-shoring and re-shoring activities, as businesses adopt inventory management and geographically diversified distribution networks to mitigate disruption risks, it added.

That said, business uncertainties include inflation, gradual interest rate adjustments, growth concerns and foreign exchange volatility.

FLCT said it will continue to focus on high-specification properties across multiple developed markets, structuring leases to meet tenant requirements and incorporating inflation protection where possible.

The counter ended Tuesday flat at S$1.01, before the announcement.