4QFY18 Distributable Income 35.6% higher at A$36.0 million
Two leases signed in 4QFY18 bringing total leasing completed in FY2018 to 296,953 sq m
Occupancy of 99.6% and WALE of 6.87 years as at 30 September 2018
FLT portfolio valued at approximately A$3.0 billion, an uplift of A$56.0 million.
DPU of 2.57 cents ex.dividend on 12th Nov. Pay date is on 19 Dec 2018. Total DPU for half year would be 3.58 cents including 1.01 cents being advanced DPU being paid out due to placement of new share in May.
Distribution Policy FLT will distribute at least 90.0% of its Distributable Income. Distributions will be made on a semi-annual basis for the six-month periods ending 31 March and 30 September. The actual level of distributions above 90% is to be determined at the REIT Manager’s discretion. Unitholders have the option to elect to receive distributions in Singapore dollars or Australian dollars.
Adjusted NPI for 4QFY18 of A$49.3 million was A$17.0 million (or 52.6%) higher than 4QFY17. The higher Adjusted NPI for 4QFY18 was contributed by the 2018 Australian Acquisition (A$0.3 million); the 2018 European Acquisition (A$13.2 million (€8.4 million)); and the 2017 Acquisition Transaction (A$2.7 million). The net effect of the annual fixed rental increment in the Australian portfolio and other income of A$2.0 million for 4QFY18 which relates to the early surrender fee received for Lot 105 Springhill Road, Port Kembla, New South Wales, also contributed to the increase in the Adjusted NPI. These were partly offset by the effect of the 2018 Divestments.
4QFY18 finance costs of A$7.6 million was A$3.2 million higher than 4QFY17. This was due mainly to higher borrowings to finance the 2018 European Acquisition during the financial year and the 2017 Acquisition Transaction. Actual weighted average interest rate (excluding upfront debt related expenses) for 4QFY18 was 2.5% and 4QFY17 was 2.8% per annum. At 30 September 2018, 82% (30 September 2017: 72%) of borrowings were at fixed rates.
The actual total return attributable to Unitholders of the Trust for 4QFY18 of A$96.1 million was A$67.2 million (or 231.7%) higher than 4QFY17 which included (a) gain on the 2018 Divestments of A$23.4 million (4QFY17: Nil); (b) a fair value gain on investment properties of A$54.7 million (4QFY17: A$11.5 million).
Tax expenses for 4QFY18 of A$18.1 million was A$11.1 million (or 156.3%) higher than 4QFY17. Current income tax was higher due mainly to higher distributable income, tax arising from the gain recorded for the 2018 Divestments and on other income. Deferred tax charge was also higher due mainly to the fair value gain recorded for investment properties.
The REIT Manager has elected to receive 100% of the 4QFY18 quarterly base management fee in the form of units (4QFY17:100% in units).
Income available for distribution to unitholders was A$34.0 million, an increase of 28.0% over 4QFY17. The REIT Manager has declared a distribution of A$2.0 million from the gain on the 2018 Divestments.
Yield is about 7.05% base on DPU of 7.19 cents, current share price of $1.02.
Result seems quite good as DPU of 1.78 cents for 4th quarter seems to be able to maintain about the same as per last year of 1.77 cents.
Not a call to buy or sell.
Pls dyodd.
In the short term, demand for industrial and logistics real estate are expected to remain high and rental rates to rise further. For the near future, the economy is expected to grow and drive demand for both industrial and logistics real estate. The increase of e-commerce will result in both new large scale e-fulfillment centers and smaller city hubs for the last-mile city distribution.
Overview The REIT Manager continues to monitor developments on the global trade tensions. Looking ahead, the REIT Manager will continue to grow FLT’s prime industrial portfolio with a focus on generating sustainable and long-term value for FLT unitholders.
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