ESR-LOGOS REIT - RHB Invest 2023-02-01: Portfolio Transformation On Track; BUY

ESR-LOGOS REIT - Portfolio Transformation On Track; BUY

  • ESR-LOGOS REIT’s 2H22 and FY22 results were broadly in line. Its operational performance should continue improving in FY23, on resilient industrial demand, but offset by interest cost and inflation pressures.
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ESR-LOGOS REIT's 2H22 Results

  • ESR-LOGOS REIT (SGX:J91U)'s 2H22 DPU grew 7.5% y-o-y, aided by merger contributions and past gains distribution top-ups of S$14.5m – to offset divestment losses, as well as interest and inflation cost pressures. See ESR-LOGOS REIT's Dividend History.
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  • ESR-LOGOS REIT's overall portfolio value declined marginally as gains from Singapore assets (+1.2%) were offset by a decline in Australia (-5.7%), which in turn was due to a ~50bps cap rate expansion.
  • ~72% of ESR-LOGOS REIT's debt is on fixed interest rates as of 4Q22 (3Q22: 67%), with every 50bps increase expected to impact ESR-LOGOS REIT's DPU by about 3%. The REIT also indicated that it will likely redeem its S$100m perpetual securities, which is due for a rate reset in Feb 2023.

Divestment of S$450m in non-core assets on the cards.

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Vijay Natarajan RHB Securities Research | 2023-02-01

Previous report by RHB:
2022-09-01 ESR-LOGOS REIT - Rise Through The Ranks; Stay BUY.

Price targets by 4 other brokers at ESR-LOGOS REIT Target Prices.
Listing of research reports at ESR-LOGOS REIT Analyst Reports.

Relevant links:
ESR-LOGOS REIT Share Price History,
ESR-LOGOS REIT Announcements,
ESR-LOGOS REIT Dividends & Corporate Actions,
ESR-LOGOS REIT News Articles

SGX Stock / REIT Search


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