On the 17th of January 2023, I attended the AGM of Frasers Logistics & Commercial Trust (FLCT) at Intercontinental Hotel Singapore. These are some interesting/important points brought up during the AGM. An early disclaimer. My note-taking skill has become rusty compared to my college days, so please pardon some missing details. This is more like a paraphrased summary :)
The CEO’s Presentation:
Rental growth rate in the UK, Germany & Dutch markets are CPI-linked. So given the higher inflation currently seen in Europe, FLCT should be poised to enjoy positive rental reversions in 2023.
Management is in advanced negotiations to lease the remaining vacant space in 2023. Only very little space left. Lease expiry profile remains strong. No more than 19.2% of GRI expires in any given year until 2032.
Most of FLCT’s energy costs is passed on through to tenants.
FLCT has one of the lowest gearing ratio in the S-REITs sector at 27.4%. A healthy aggregate leverage should help to tide it over the current higher
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