Frasers Logistics & Commercial Trust (FLCT) saw its stock price plummet by 3.31% in early trading on Wednesday, following the release of its first-half financial results. The significant drop comes as the trust's manager reported a substantial decline in its distribution per unit (DPU) for the period ended March 31, 2025.
According to the financial report, FLCT's DPU fell by 13.8% to S$0.03, down from S$0.0348 in the corresponding period last year. The trust's manager attributed this decline to two primary factors: transitional challenges in the commercial portfolio and foreign exchange volatility. These issues were exacerbated by the prevailing higher interest rate environment, which has put pressure on the trust's financial performance.
Despite the disappointing results, FLCT continues to offer an attractive yield to investors. The announced DPU, scheduled for payment on June 18, represents an annualized distribution yield of 6.5%. This yield is based on the annualized DPU and the market closing price of S$0.92 per unit as of March 28, the last trading day of that month. However, the current stock price movement suggests that investors are reassessing the trust's value in light of the recent financial performance.
Frasers L&C Tr drops 3.87% at 10:47 am, May 7th.