3Q FY2024 Business Update Conference Call

Good morning, everyone. I hope you guys can hear me loud on Twitter. And thank you for joining FLCT's 3Q FY24 Business Update and the List briefing. I'm CK, the investor relations for FLCT. And today I'm joined by members of the FLCT management team. I trust there are all familiar faces, including our CEO, Ms. Antion Lee, our CFO on my left, Ms. Tricia Yeo, our head of portfolio management, Mr. Jay Spong, and our deputy head of investments, Mr. Jacob Toh. As per usual, today's session will start with a page turn of our business update presentation found last evening, followed by a Q&A session. We are adopting a Q&A format for today's briefing, so you may not be able to use the open chat function that you see there. It might be grayed out. For any queries, I recommend that you either use the raise hand function, which some of you have already done, and I will unmute you in sequence to ask your questions later on. Feel free to punch it into a Q&A box or you can also email it to me or send it via text.

So I think I've said a lot. Without any further ado, let's begin. May I please invite Antion to kick off today's session? Antion, over to you. Yeah, thank you, CK. Hi, good morning, everyone. So thank you so much for joining our third quarter FY24 Business Update webcast. So in this quarter, FLCT continues to deliver a robust operating performance, and by good leasing momentum, portfolio rental reversions came in at a positive 1448% on an 8.2% on the capital management front. FLCT continues to make it a healthy capital position with an aggregate of 3.2%, remaining the lowest year amongst the planned largest assets. So I think it's like many of us are very familiar with.

So just in brief, our portfolio stands at 112 properties of which the LNI accounts for over 70% of the portfolio composition by value. So we are now heading over to Tricia, who will walk you through the capital management side. Thanks, Antion. Good morning, all. So MCS mentioned that our aggregate leverage as of 30 June 24 is standing at 33.2%. So this continues to leave us with Emperor hit room before 40% gearing ratio is reached. So we do have a hit room of 793 million before that 40%. And 72.6% of our borrowings are currently hatched at fixed rates.

And 77% of our borrowings comprises of green or sustainability-linked financing. On the debt maturity and refinancing front, we have no interest that it's used for the rest of the year. So facilities are already in place for these borrowings. And we are also commencing refinancing for the debts that's coming to you the first half FY25. So I'll hand over to Jay, who will cover off the portfolio updates. Thanks, Richard. Hi, everyone. Let's start with the leasing summary for Q3. We leased a total of 90,000 square metres. So it's been a pretty big haul from the leasing front. And this brings year-to-day leasing to around 233,000 square metres, or over 8% of the portfolio area. In Q3, we secured 22 deals in total. And as I mentioned, the overall reversion position was a 25% lift on average versus average places.

We looked at each thing, but LNI, there was 60 that was secured. And that's actually the 40.7% average versus average reversion, with some really strong results achieved in New South Wales and Victoria. Commercial has seen some positive leasing activity in most of our buildings. 16 deals all up. And the overall position was a negative 1.9% reversion, again, on an average versus average basis. Looking at the occupancy review and what that then results in is a total portfolio occupancy rate, which has improved to 95%. The commercial has improved up to 87.6%. The logistics has dropped slightly to 99.4%. And you can see here that we have one additional vacancy in LNI, which is the ex-Gudia facility, a charitable part in Queensland. Looking at the individual commercial assets, you'll see some positive uplift in occupancy at Amazon Botanical Park.