On 6 November 2024, Frasers Logistics & Commercial Trust (“FLCT”) have announced their full year result for FY2024. Management has managed to lengthen their debt maturity profile, which gives FLCT more time to manage their debt. This may also mean that the loans were renewed at rates lower than the last few quarters and potentially next few quarters with the uncertainty on future interest rate cuts. FLCT has enjoyed their lower cost of borrowings compared to many other REITs though recently we are seeing a notable increase in finance costs. With the Federal Reserve announcing on 15 November 2024 that they will cut their key interest rate slowly and deliberately in the coming months, we may see further increases in finance costs which will continue to erode DPU. This is something that the market may be pricing in, with FLCT trading at a discount to its book value. Take note that with the share swap deal between Thai Beverage and TCC Assets, Frasers Hospitality Trust was hit with higher withholding tax rates. On surface level, there are no...