ESR-LOGOS REIT - DBS Research 2022-10-27: Positive Rental Reversions Maintained

• See ESR-LOGOS REIT's announcement dated 26 Oct 2022 for its 3Q22 operational updates.

Continued strong positive rental reversions of 11.4%.

• - Read this at SGinvestors.io -
• 213,000 sqm of leases were renewed and signed in 3Q22. Positive rental reversions came only from Singapore; rental reversions in Australia were flat.
• Positive reversions for logistics segment came from several properties while positive reversions for high-specs segment came mainly from 7000 Ang Mo Kio Ave 5.

Slight dip in portfolio occupancies to 92.4%

• ESR-LOGOS REIT's 3Q22 portfolio occupancies inched down by 1.7ppts q-o-q. Decline in occupancies came mainly from Singapore portfolio where occupancies dipped 2.2ppts, and mainly due to non-renewal of leases by master tenants at two properties:
  • - Read this at SGinvestors.io -
  • The other non-renewal was StorHub at 160 Kallang Way; currently in negotiations with a replacement tenant
• Occupancies for Australian portfolio remained stable at 99.5%.
• ~6.4% of ESR-LOGOS REIT's portfolio leases remain to be renewed in 4Q22. Majority are already in the process of being renewed and this should expect further positive rental reversions going forward and in FY23.

Acquisition of Sakura Distribution Centre to be completed at the end of the month

• Read more at SGinvestors.io.

Dale LAI DBS Group Research | Derek TAN DBS Research | https://www.dbs.com/insightsdirect/ 2022-10-27 SGinvestors.io

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