( YTD: -5.11% | 5D: -7.22%)

7 May - 1HFY2025 Results

• Highlights

  • Strong Logistics & Industrial (“L&I”) operating performance with high L&I occupancy rate of 99.6%

  • Positive L&I portfolio rental reversions of +8.7% (incoming rent vs. outgoing rent basis) and +33.0% (average rent vs. average rent basis) for the period from January to March 2025

  • Aggregate leverage remains stable at 36.1% with debt headroom of S$447 million

• Financial Performance and Distribution
  • FLCT reported revenue of S$232.3 million and Adjusted Net Property Income2 of S$161.3 million for 1HFY25, representing increases of 7.5% and 1.6% respectively, from S$216.0 million and S$158.7 million in the first half of FY2025 (“1HFY25”).
  • Finance costs were higher mainly due to the increase in interest rates and additional borrowings drawn for fund through developments and acquisitions.
  • Distributable income for 1HFY25 was correspondingly lower at S$113.0 million, from S$130.7 million in 1HFY24 after taking into account the higher finance costs, higher tax expense and 56.9% of 1HFY25 management fees paid in the form of cash.
  • The distribution per unit (“DPU”) for 1HFY25 was 3.00 Singapore cents, representing an annualised distribution yield of 6.5%3 . The 1HFY25 DPU will be paid on 18 June 2025.
    
    
• Portfolio Update
  • For the three months from January to March 2025 (“2QFY25”), FLCT achieved positive portfolio average rental reversion of +2.5% on an incoming rent vs. outgoing rent basis (“incoming vs outgoing”) and +19.2% for the average rent of the new/renewal lease as compared to the average rent of the preceding lease (“average rent vs. average rent”).
  • For 1HFY25, the portfolio achieved positive rental reversion of +2.0% on an incoming vs. outgoing basis and +29.0% on an average rent vs. average rent basis. The strong performance came from total leasing activity covering approximately 319,000 sq m or approximately 11.2% of the total portfolio lettable area.
  • FLCT maintained a healthy overall portfolio occupancy of 93.9% as at 31 March 2025. Supported by high- quality assets with good specifications located in prime locations, a favourable demand-supply environment and resilient underlying property fundamentals, the L&I portfolio contributing approximately 72.4% of portfolio value, continued to see near full occupancy at 99.6%.
  • The commercial portfolio occupancy was 84.1% as at 31 March 2025. The weighted average lease expiry (“WALE”) was 4.6 years for the L&I portfolio and 4.7 years for the commercial portfolio, resulting in an overall portfolio WALE of 4.6 years as at 31 March 2025.
    
    
• Capital Management
  • As at 31 March 2025, FLCT’s aggregate leverage remained healthy at 36.1%, with a weighted average debt maturity of 2.3 years and high interest coverage ratio of 4.5 times.
  • With 69.7% of borrowings at fixed rates, FLCT’s cost of borrowings was 3.0% per annum on a trailing 12-month basis. FLCT will continue to maintain a prudent capital management approach to navigate ongoing volatilities and risks.
  • As at 31 March 2025, FLCT has facilities in place for refinancing the S$395 million of debt due in FY20255 . FLCT has a “BBB+” rating by Fitch with a stable outlook.
    
    
• ESG Performance
  • FLCT remains committed in advancing our sustainability efforts, with the continuing installation of renewable energy capacity on our properties bringing total solar capacity from the FLCT portfolio to 15.1 MW, as well as the increasing proportion of green certification to 90%

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( YTD: -9.09% | 5D: -2.91%)

7 May - 3Q 2025 Business Update

Highlights

• Change of Leadership
  • Guy Cawthra joined the Manager as CEO effective 1 April, bringing with him over two decades of expertise in global real estate investment management.
  • Prior to his appointment, Guy led the S$12 billion Lendlease Asia Investment and Asset Management business. Notable assets under management in Singapore include Paya Lebar Quarter and Parkway Parade.
    
    
• Singapore Portfolio Achieved Positive Rental Reversions Despite Softer Retail Landscape
  • Achieved positive retail rental reversion of 10.4%.
  • Achieved positive rental uplift of approximately 13%2 for Jem office.
  • Visitation registered a decline of 0.2% and tenant sales declined 5.1% (both year-to-date), impacted by a softer retail landscape, outbound tourism and weakness in specific trade sectors like shoes & bags, fashion & accessories, and sporting goods & apparel.
    
    
• Active Asset Management
  • Signed Shaw Theatres as a new tenant at Jem, replacing Cathay Cineplex.
  • Asset enhancement works completed at the ground floor lobby of Building 3 in Milan.
  • Commenced refurbishment of restroom facilities at Jem to elevate amenities and shoppers’ comfort.
    Construction of the multifunctional event space is progressing well and on track to complete by 2H 2026.
    
    
• Reducing Cost of Capital
  • Refinanced S$200 million perpetual securities due in April 2025 with new issuance at a lower coupon rate and loans with lower cost of funding.

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( YTD: +1.60% | 5D: +2.42%)

7 May - FY2025 Financial Results

• Highlights

  • Distributions to Unitholders and Distribution per Unit (“DPU”) grew by 5.2% and 2.6% YoY respectively, anchored by the resilient operational performance

  • Achieved 20.0% rental reversion for FY2025

  • Stable portfolio occupancy of 95.8% based on committed leases and excluding impact from Asset Enhancement Initiatives (“AEIs”) and transitory movement of tenants Portfolio WALE stood at 4.4 years with the signing of new master and anchor leases over FY2025

  • Successful issuance of S$125 million 5-year perpetual securities priced at 4.70% underscores AA REIT’s proactive capital management to secure competitive cost of capital ahead of time

  • Healthy balance sheet with low gearing of 28.9% provides ample headroom to fund future growth initiatives and new acquisitions

  • The ongoing execution of our AEIs and proposed divestment of 3 Toh Tuck Link are key levers in our portfolio rejuvenation strategy to drive sustainable long term returns

• Portfolio Update
  • In FY2025, the Manager executed 25 new and 50 renewal leases, totaling 159,827 sqm, representing 20.6% of the portfolio’s net lettable area (“NLA”), with positive rental reversion of 20.0%.
  • As at 31 March 2025, overall portfolio occupancy was 93.6%.
  • Excluding the ongoing AEIs and transitory movements by tenants, the portfolio occupancy rate based on committed leases would be 95.8%. Weighted average lease expiry by income stood at 4.4 years.
  • The portfolio is well supported by 200 tenants diversified across multiple trade sectors, with 83.1% of gross rental income (“GRI”) from tenants in defensive and resilient industries.
    
    
• Valuations
  • As at 31 March 2025, AA REIT owns 28 properties valued at S$2.13 billion, comprising S$1.51 billion (~70.9%) of investment properties in Singapore and S$0.62 billion (~29.1%) of investment properties (including the 49.0% interest in Optus Centre held through a joint venture) in Australia.
  • AA REIT’s portfolio valuation declined by approximately 1.5% or S$33.1 million from 31 March 2024 largely due to the cap rates expansion of two Australian properties and the softening of the Australian Dollar but offset by higher valuation for the Singapore properties.
    
    
• Capital Management
  • As at 31 March 2025, AA REIT’s aggregate leverage stood at 28.9% with no debt refinancing until FY2027 and an interest coverage ratio of 2.4 times
  • Through proactive capital management, the blended debt funding cost decreased slightly to 4.3% as compared to the past two quarters while the weighted average debt maturity is at 3.0 years with strong financial flexibility2 of approximately S$289.5 million.
  • AA REIT has also maintained healthy hedges of about 85%3 fixed on its debt allowing it to capture positive impact from any reduction in floating rates; while 74% of its expected Australian dollar distributable income is hedged into Singapore dollars on a rolling four-quarter basis, minimising the impact of any adverse exchange rate fluctuations.
    
    
• Sustainability
  • The Manager is committed to continuously improving the operational sustainability and resilience of its portfolio of assets. In FY2025, AA REIT has progressed on its Phase 2 of the rooftop solar PV system installation across three properties in Singapore.
  • The solar panels will have a capacity of 3.65 Megawatt-peak (“MWp”) once operational, positioning AA REIT to achieve its medium-term solar generation capacity target by FY2027.

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( YTD: -1.72% | 5D: +0.00%)

9 May - 1Q 2025 Result

• Highlights
  • Acquired DPL Gunma Fujioka in March 2025, adding a high-quality property to its growing portfolio
  • Healthy rent uplift of 13% from new tenants secured for vacated space
  • Maintained healthy portfolio occupancy rate of 92.1% as at 31 March 2025
    
    
• During 1Q FY2025, DHLT acquired DPL Gunma Fujioka, a freehold logistics property located in Greater Tokyo, Japan (“Property”).
  
  
• Built in 2022, the Property is entirely leased to a blue-chip tenant which is a group company of one of the largest multinational consumer goods corporations globally, thereby further strengthening the tenant base of DHLT’s portfolio
  
  
• During the quarter, three leases expired and tenants have been secured for two of these leases with a weighted average rent uplift of approximately 13%
  
  
• A space that was vacated during FY2024 was also partially leased. As a result, portfolio occupancy rate was 92.1% as at 31 March 2025, and the weighted average lease expiry (“WALE”) of the portfolio remained relatively long at 6.7 years
  
  
• Net property income (“NPI”) of the Japan portfolio for 1Q FY2025 in JPY terms was slightly lower year-on-year (“y-o-y”) by 1.0% as contribution from DPL Ibaraki Yuki which was acquired in March 2024 was offset by vacancies in the Japan portfolio and higher property-related expenses.
  
  
• Aggregate leverage was higher at 41.1% as at 31 March 2025 compared to 31 December 2024, mainly due to an additional fixed rate loan drawn for the acquisition of DPL Gunma Fujioka, but remained below the limit of 50%
  
  
• The interest coverage ratio of 7.4 times as at 31 March 2025 was substantially above the threshold of 1.5 times. The proportion of fixed rate borrowings remained high at 99.3% as at 31 March 2025.

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The REITsavvy 2025 Q1 Review: Performance of S-REITs

Singapore REITs (S-REITs) kicked off 2025 navigating a market still adjusting to the aftershocks of past volatility. Despite a more supportive interest rate environment and early signs of economic stabilization, the sector’s recovery remained uneven through the first quarter.

At the start of the year, sentiment toward S-REITs was cautiously optimistic. The U.S. Federal Reserve had delivered another 50 basis points of rate cuts between January and March, bringing the cumulative easing cycle to 150 basis points since late 2024. Expectations were high that lower financing costs would provide immediate relief to highly leveraged REITs and unlock valuation upside across the sector.

However, as Q1 unfolded ....

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