Categories
Frasers Logistics & Commercial Trust Reits

Headwinds of Frasers Logistics & Commercial Trust (FLCT)

ReitFrasers Logistics & Commercial@1.21 SGD
If cost of debt rise by 3%
Estimated DPU0.077
Impact on DPU if cost of debt rise by 3%0.003
DPU after increase of cost of debt0.074
Estimated Currency impact Jan 2022 vis a vis Oct 20221.53 vs 1.4 Euro (~30% by book value*) 1.82 vs 1.59 GBP (~10% in UK by book value)
Estimated % of Currency Impact8.5% drop for EUR
12.5% drop for UK
Estimated Overall impact-7.7%
Resultant Estimated Dividend Yield (In SGD)5.86%
NegativeEurope and UK currency fluctuation. Ongoing energy crisis in Europe drives up the power bills which result in higher business cost.
PositiveBuild-in rental increments ensures stability of income growth. Being conservative, I have not included it in my estimation of resultant yield
Disclaimer: I may own the above REIT and this post is not a recommendation to buy or sell. The above calculation is just an estimate (may be flawed or contain errors) and is based on my own hypothetical assumptions on a layman understanding without taking into consideration of factors such as hedging, some other macroeconomic factors and etc. Hence, the actual dividend yield may differ significantly from my calculations.

*Using book value as I could not find break down of geographical assets based on income.