FLCT Earnings: Currency Headwinds and Interest Costs Result in Distribution Misses

Frasers Logistics and Commercial Trust’s, or FLCT’s, first-half fiscal 2025 (ending September) results were below our expectations. Distribution per unit, or DPU, fell 13.8% year on year to SGD 0.03, affected by foreign currency headwinds, higher vacancies at Alexandra Technopark and 357 Collins Street, increased nonrecoverable land taxes for Victoria and Queensland in Australia, and rising finance costs due to higher interest rates and additional debt drawn for development and acquisitions.