
Company Background
Frasers Logistics & Commercial Trust (FLCT) is a Singapore-listed real estate investment trust
(S-REIT) with 114 logistics, industrial and commercial properties valued at c.S$7.1bn across
five developed markets, namely Australia, Germany, Singapore, the UK and the Netherlands,
with almost 75% of its portfolio comprising freehold assets (as at Jun 26). Listed in June 2016
as Frasers Logistics & Industrial Trust, FLCT was renamed in April 2020 following its merger
with Frasers Commercial Trust. FLCT focuses primarily on logistics and industrial assets,
complemented by CBD and non-CBD offices and research and development business parks
across Asia-Pacific and Europe. It is managed by Frasers Logistics & Commercial Asset
Management Pte Ltd, a wholly owned subsidiary of Frasers Property Limited (FPL), a
Singapore-listed integrated real estate investor, developer and operator with total assets of
S$40bn across Southeast Asia, Australia, Europe and China as at 31 March 2026.
Key Investment Merits
• Resilient L&I portfolio underpins organic DPU growth. Rental reversions were robust at
11.9% in 3Q26 on an incoming-versus-outgoing basis and 23.8% on an average-versus
average basis, reflecting strong rental uplift amid tight market conditions and resilient
domestic demand. Annual rental escalations averaging 3.2% p.a. in Australia and CPI
linked leases in Europe provide further built-in rental growth. Demand for logistics is
driven by structural growth in e-commerce, supply chain outsourcing and industrial
activity.
• Acquisition to support inorganic growth. FLCT’s sizeable ROFR pipeline of over S$5bn
from sponsor FPL, alongside third-party opportunities, provides a strong foundation for
future acquisitions. Its recent €294.9mn acquisition of four logistics properties in
Germany and the Netherlands, expected to be 1.7% DPU accretive, demonstrates its
ability to execute on this strategy. Divestments of underperforming assets also allow FLCT
to recycle capital into higher-yielding properties and optimise its portfolio.
• Commercial portfolio backfilling offers further DPU upside. FLCT’s commercial portfolio
accounts for 24.7% of portfolio value, with occupancy at 88.4% as at 30 June 2026. ATP
is now 85.3% occupied following the backfilling of c.83% of the space vacated by Google,
while UK business parks recorded occupancy of 81.5% to 87.6%. Further backfilling of the
remaining vacancies could provide meaningful earnings upside and support DPU growth.
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Darren has over three years of experience on the buy-side as a fund manager. During his time as fund manager, he has managed multiple funds and mandates including dividend income, growth, customised, Singapore focused and regionally focused funds. He graduated from the University of London with a First-Class Honours degree in Banking and Finance.