On 4 May 2023, Frasers Logistics & Commercial Trust (“FLCT”) have announced their half year result for FY2023. DPU have decreased significantly during this period, which is something investors should take note of and be concerned if it is a continued downtrend. Considering that there may be further hike rates for the rest of 2023, we may see share price continue to decrease to compensate for the risks.

The other financial position results however still implied a strong and stable portfolio of property assets, as there are no significant change in their metrics from the last quarter and are in favorable territory.

Background

FLCT is a real estate investment trust (“REIT”) with a portfolio comprising logistic, industrial and commercial properties diversified across five developed countries – Australia, Germany, Singapore, the United Kingdom (“UK”) and the Netherlands.

FLCT was