ESR-REIT - CGS-CIMB Research 2022-04-28: Near-Term Cost Hiccup, Growth Plans Intact

ESR-REIT - Near-Term Cost Hiccup, Growth Plans Intact

ESR-REIT (SGX:J91U) | SGinvestors.ioESR-REIT (SGX:J91U)
  • ESR-REIT (SGX:J91U)'s 1Q22 DPU of S$0.00723 was slightly below expectations at 23.3% of our FY22F forecast.
  • Portfolio occupancy rate stood at 91.5% in 1Q22. ESR-REIT leased a total of 305,613 sqft of space in 1Q, with a retention rate of 75.6%. There was strong leasing interest received from third-party logistics providers and end-users with new demand from chip manufacturers and electronics companies looking to expand amidst the global supply chain disruptions. Rental reversion during the quarter was +3.1%,
  • We lower our FY22-24F DPU estimates for ESR-REIT (SGX:J91U) by 4-7.9% to factor in higher operating expenses. Accordingly, our DDM-based target price for ESR-REIT (SGX:J91U) is lowered to S$0.474. At this level, ESR-REIT continues to offer attractive dividend yield of 7%.

Above is the excerpt from research report by CGS-CIMB.
Clients of CGS-CIMB may access the full report in PDF @

EING Kar Mei CFA CGS-CIMB Research | LOCK Mun Yee CGS-CIMB Research | 2022-04-28

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

Previous report by CGS-CIMB:
2022-08-29 ESR-LOGOS REIT - Maiden Foray Into Japan.

Price targets by other brokers at ESR-REIT Target Prices.
Listing of research reports at ESR-REIT Analyst Reports.

Relevant links:
ESR-REIT Share Price History,
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ESR-REIT Dividends & Corporate Actions,
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