FLCT gears for COVID-19 impact on its retail portfolio
COVID-19 had a $1.1m impact on Frasers Logistics & Commercial Trust’s distributable income for the first nine months of the financial year.
Whilst the pandemic has had no material impact on Frasers Logistics & Commercial Trust (FLCT)’s overall portfolio for the third quarter of the financial year, the company expects a hit on its retail portfolio.
In its third-quarter business update, FLCT said that it expects the ongoing pandemic to have a near- to mid-term impact on the retail components of its Singapore and Australia retail portfolios.
For the first nine months of the financial year, COVID-19’s impact on FLCT’s distributable income was approximately $1.1m, comprising mainly of rental waivers and allowance for doubtful receivables attributable to the pandemic, which has not been material for the real estate investment trust.
It added that the pandemic had a limited impact on its industrial and commercial properties in Australia and Europe, whilst it had a minimal impact from the Heightened Alerts in Singapore.
For the third quarter of its financial year, FLCT has completed leasing 2.8% of its lettable area at 74,865 square metres and grew its portfolio rental reversion by 0.8%.
It has 103 properties across 5 countries valued at $6.8b with a weighted average lease expiry of 4.9 years, and an occupancy rate of 96.3% as of end-June.