99 Station Road in Sydney, a property in the initial portfolio of Frasers Logistics & Industrial Trust. (Photo: Frasers Logistics & Industrial Trust)99 Station Road in Sydney, a property in the initial portfolio of Frasers Logistics & Industrial Trust. (Photo: Frasers Logistics & Industrial Trust)

Frasers Logistics & Industrial Trust announced on 5 May that it has achieved DPU of 1.75 Singapore cents for the reporting period of 1 January – 31 March 2017, 6.7% higher than the 1.64 cents forecast at IPO.

Gross revenue and net property income for the period, the latter adjusted for straight lining rental adjustments, came in at AUD40.9 million (USD30.2 million) and AUD30.9 million, trumping expectations by 1.6% and 0.3% respectively.

“Actual property operating expenses was AUD6.4 million, 2.3% below forecast due mainly to an exemption for absentee landlord tax levy by the Victorian State Government for the 2017 tax year, which was partially offset by provisions for repairs and maintenance costs incurred for some properties that had their leases extended and those undergoing leasing negotiations”, said the REIT in a clarification of the adjustments.

“As a result, adjusted net property income for the quarter was marginally above forecast at AUD30.9 million” it added.

The REIT’s portfolio occupancy was 99.3% as at 31 March 2017, with a weighted average lease expiry (WALE) of 6.7 years.

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By Ridzwan Rahmat

Ridzwan has been analysing REITs and business trusts since 2008, and personally manages a portfolio comprising mainly of SGX-listed REITs. He founded REITsWeek in 2013.