FLCT Keeps Payout Steady, but Debt Rises and Target Price Falls

A steady year for unitholders

Frasers Logistics & Commercial Trust (FLCT) is a Singapore-listed property trust. It owns warehouses, factories, offices and business parks. On 6 November 2026, OCBC Group Research shared its view on the trust's latest results. Its rating stays at "Buy", but its target price is now lower.

The trust's financial year ended on 30 September 2026. For the full year, it paid 5.90 Singapore cents per unit. That is 0.8% less than the 5.95 cents it paid the year before. The result matched what OCBC expected. It was 100.7% of the analyst's full-year forecast.

Why the payout did not grow

The trust's business actually did better. In the second half of the year, income from rent rose 6.7% to S$255.2 million. After property costs, income rose 8.8% to S$187.6 million.

Four things helped:

• Landlords in the warehouse sector raised rents each year.
• The Australian and euro currencies were stronger against the Singapore dollar.
• More offices were filled at Alexandra Technopark in Singapore.
• New property purchases added income.

Two things held it back. The trust sold a building at 357 Collins Street, so it lost that rent. It also paid higher land taxes in the Australian states of Victoria and Queensland.

Borrowing also cost more. Interest and related costs rose 8.2% to S$47.1 million, because the trust refinanced old loans at higher rates and borrowed more to buy properties.

So why did the payout not grow? The trust paid out less money from property sale profits, S$3.0 million against S$9.8 million a year earlier. It also paid fewer of its management fees in new units, 75% instead of 96%. Paying fees in units saves cash, so paying fewer that way leaves less cash for investors. Without the sale profits, the yearly payout would have grown 9.4% to 5.70 cents.