ESR-REIT - CGS-CIMB Research 2022-01-28: Stable Income, Attractive Yield

ESR-REIT - Stable Income, Attractive Yield

ESR-REIT (SGX:J91U)

ESR-REIT (SGX:J91U) FY21 DPU of S$0.02987 (+6.7% y-o-y) was in line, at 101% of our FY21F DPU forecast of S$0.0296. FY21 revenue/NPI rose 4.9%/5.5% y-o-y on
1. the absence of provision for COVID-19 rental rebates to tenants in FY21 (S$7.4m in FY20),
2. contribution from 46A Tanjong Penjuru which was acquired on 29 Jun 2021, as well as
3. the leasing out of certain properties in FY21.
Healthy reversion from high-specs, logistics and general industrial; active capital recycling and AEIs to boost portfolio yield.
Our FY22-23F DPU forecast for ESR-REIT is adjusted by -1.3% to +0.7% after updating for the full year numbers. We reduce our DDM-based target price for ESR-REIT to S$0.501 as we raise our COE assumption to reflect the rising interest rate environment.

Above is the excerpt from research report by CGS-CIMB.
Clients of CGS-CIMB may access the full report in PDF @ https://www.itradecimb.com.sg/.

EING Kar Mei CFA CGS-CIMB Research | LOCK Mun Yee CGS-CIMB Research | https://www.cgs-cimb.com 2022-01-28

Read also CGS-CIMB's most recent report:
2022-10-26 ESR-LOGOS REIT - Healthy Topline Performance.

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Listing of research reports at ESR-REIT Analyst Reports.