Frasers Logistics & Commercial Trust (BUOU) AI Stock Analysis

• Market Cap: S$3.66B
• Dividend Yield: 7.52%
• Average Volume (3M): 10.33M
• Price to Earnings (P/E): 17.8
• Beta (1Y): 0.80
• Revenue Growth: 2.01%
• EPS Growth: 38.17%
• Country: SG
• Employees: 22
• Sector: Real Estate
• Sector Strength: 53
• Industry: REIT - Industrial
• EPS (TTM): 0.03
• Shares Outstanding: 3,790,771,000
• 10 Day Avg. Volume: 7,560,240
• 30 Day Avg. Volume: 10,333,340
• PEG Ratio: -0.12
• Price to Book (P/B): 1.01
• Price to Sales (P/S): 9.66
• P/FCF Ratio: 19.34
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: S$1.08
• Price Target Upside: 14.85% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 72 Outperform
• Price Target: S$1.00 ▲(6.38% Upside)

Frasers Logistics & Commercial Trust scores well due to strong technical indicators and a stable financial position with healthy profit margins. However, the high P/E ratio and challenges in profitability and cash flow growth slightly dampen the overall score. The high dividend yield is a significant positive factor for income-focused investors.

Positive Factors

Revenue Growth

Consistent revenue growth indicates a positive trend and reflects the trust's ability to capitalize on demand in the logistics sector, supporting long-term stability.

Strong Profit Margins

High profit margins demonstrate operational efficiency and effective cost management, contributing to sustainable profitability and competitive advantage.

Strategic Financing

Strategic financing through long-term notes enhances financial flexibility, supporting growth initiatives and refinancing needs, which is crucial for long-term expansion.

Negative Factors

Decline in Free Cash Flow Growth

A decline in free cash flow growth may affect the trust's ability to fund operations and investments, potentially limiting financial flexibility and growth prospects.

Low Return on Equity

Low ROE indicates inefficiency in generating profits from equity, which could deter investors seeking higher returns and affect long-term shareholder value.

Management Stability Clause

Management stability clauses in loan agreements could restrict operational flexibility and impose constraints on leadership changes, affecting strategic decisions.

Frasers Logistics & Commercial Trust Business Overview & Revenue Model

Company Description

Frasers Logistics & Commercial Trust (FLCT) is a Singapore-listed real estate investment trust with a portfolio comprising 100 industrial and commercial properties, worth approximately S$6.2 billion, diversified across five major developed markets – Australia, Germany, Singapore, the United Kingdom and the Netherlands. FLCT was listed on the Mainboard of Singapore Exchange Securities Trading Limited (SGX-ST) on 20 June 2016 as Frasers Logistics & Industrial Trust and was subsequently renamed Frasers Logistics & Commercial Trust on 29 April 2020 following the completion of a merger with Frasers Commercial Trust. FLCT's investment strategy is to invest globally in a diversified portfolio of income-producing properties used predominantly for logistics or industrial purposes located globally, or commercial purposes (comprising primarily CBD office space) or business park purposes (comprising primarily non-CBD office space and/or research and development space) located in the Asia-Pacific region or in Europe (including the United Kingdom). FLCT is sponsored by Frasers Property Limited.

How the Company Makes Money

Frasers Logistics & Commercial Trust generates revenue primarily through rental income from its portfolio of properties, which includes logistics and commercial assets. The trust leases these properties to a diverse range of tenants, including logistics operators, e-commerce companies, and traditional retail businesses, often under long-term leases that provide stability and predictability in cash flows. Additionally, the trust may benefit from capital appreciation of its properties over time. Significant partnerships with established brands and tenants enhance the trust's occupancy rates and rental income, while a disciplined acquisition strategy allows it to expand its portfolio and leverage growth opportunities in the logistics sector.

Frasers Logistics & Commercial Trust Financial Statement Overview

Summary

Frasers Logistics & Commercial Trust demonstrates strong operational efficiency and a stable financial position with consistent revenue growth and healthy profit margins. However, challenges exist in improving profitability and cash flow growth, with a low return on equity suggesting room for enhancing shareholder returns.

Income Statement

Frasers Logistics & Commercial Trust shows a stable revenue growth rate of 3.69% in the latest year, indicating a positive trend after a previous decline. The gross profit margin remains strong at 71.89%, and the net profit margin has improved significantly to 33.03% from a negative margin the previous year. EBIT and EBITDA margins are robust at 63.04% and 63.05%, respectively, reflecting efficient operations. However, the historical volatility in revenue and net income margins suggests potential risks.

Balance Sheet

The company's debt-to-equity ratio is moderate at 0.57, indicating a balanced approach to leveraging. Return on equity is relatively low at 3.46%, suggesting limited profitability from shareholders' investments. The equity ratio stands at 59.82%, reflecting a solid capital structure. While the balance sheet shows stability, the low ROE highlights a need for improved profitability.

Cash Flow

Operating cash flow to net income ratio is 0.47, indicating moderate cash generation relative to net income. Free cash flow to net income ratio is healthy at 71.67%, but free cash flow growth has declined by 12.60%, which could impact future liquidity. The cash flow statement shows adequate cash management, though the decline in free cash flow growth is a concern.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	482.35M	446.67M	420.78M	450.19M	469.33M	332.03M
Gross Profit	159.49M	321.13M	314.13M	347.92M	365.82M	269.18M
EBITDA	269.21M	281.62M	-24.95M	902.74M	922.08M	567.62M
Net Income	134.28M	147.53M	-103.03M	728.64M	731.11M	454.72M
Balance Sheet
Total Assets	7.16B	7.14B	6.94B	7.41B	7.68B	6.73B
Cash, Cash Equivalents and Short-Term Investments	131.91M	133.57M	152.74M	220.73M	140.37M	168.65M
Total Debt	2.61B	2.41B	2.16B	2.10B	2.84B	2.62B
Total Liabilities	2.99B	2.81B	2.51B	2.52B	3.06B	2.93B
Stockholders Equity	4.08B	4.27B	4.38B	4.84B	4.57B	3.77B
Cash Flow
Free Cash Flow	221.57M	223.16M	140.99M	141.51M	231.37M	182.11M
Operating Cash Flow	309.78M	311.37M	302.25M	269.13M	260.26M	182.16M
Investing Cash Flow	-208.39M	-263.66M	-128.31M	523.51M	-325.41M	-453.50M
Financing Cash Flow	-65.82M	-67.38M	-243.09M	-737.69M	-4.79M	323.22M

Frasers Logistics & Commercial Trust Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.94
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SG:BUOU, the sentiment is Positive. The current price of 0.94 is below the 20-day moving average (MA) of 0.96, below the 50-day MA of 0.96, and above the 200-day MA of 0.87, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 53.61 is Neutral, neither overbought nor oversold. The STOCH value of 92.13 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SG:BUOU.

Frasers Logistics & Commercial Trust Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DHLU	73 Outperform	S$402.43M	13.40	5.87%	8.04%	-5.80%	-27.16%
BUOU	72 Outperform	S$3.66B	17.84	4.77%	7.52%	2.01%	38.17%
O5RU	70 Outperform	S$1.14B	32.86	3.38%	6.84%	1.72%	-21.69%
ME8U	69 Neutral	S$5.82B	17.54	6.70%	6.54%	-1.96%	175.59%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
M44U	64 Neutral	$6.72B	31.73	3.18%	5.88%	-1.81%	-18.43%
9A4U	56 Neutral	S$2.21B	-19.34	-4.88%	6.81%	10.51%	-40.93%

Frasers Logistics & Commercial Trust Corporate Events

Frasers Logistics & Commercial Trust Secures USD 50 Million Loan Facility

Frasers Logistics & Commercial Trust has entered into a USD 50 million loan facility agreement with The HongKong and Shanghai Banking Corporation Limited, Singapore Branch. The agreement includes a condition that mandates prepayment if there is a change in the management of FLCT without the lender’s consent, potentially impacting the company’s financial operations and stakeholder interests.

Frasers Logistics & Commercial Trust Issues New Units for Management Fees

Frasers Logistics & Commercial Trust announced the issuance of 8,247,948 new units to pay management fees for the period from April to June 2025. This move reflects the company’s strategy to manage its financial obligations through equity, potentially impacting its unit holders and market position by altering the unit distribution and financial structure.

Frasers Logistics & Commercial Trust Prices S$100 Million Notes for Strategic Financing

Frasers Logistics & Commercial Trust has announced the pricing of S$100 million in notes due 2034, under its S$1 billion Multicurrency Debt Issuance Programme. The proceeds from these notes, which are rated ‘BBB+’ by Fitch Ratings, will be used for refinancing existing borrowings, financing acquisitions, and general corporate purposes, potentially impacting the company’s financial flexibility and growth strategy.

Frasers Logistics & Commercial Trust Secures S$200 Million Loan with Management Stability Clause

Frasers Logistics & Commercial Trust has announced a significant loan facility agreement involving a S$200 million sustainability-linked loan with DBS Bank Ltd. The agreement includes a condition that mandates prepayment if there is a change in the manager of FLCT without the lender’s consent, or if Frasers Property Limited’s control over the manager falls below 50%. This condition underscores the importance of stability in management for maintaining financial arrangements and could impact the trust’s operational flexibility.