- ESR-LOGOS REIT (SGX:J91U)’s recent series of divestments are a step in the right direction amidst elevated interest rates and a higher cost of capital. The move addresses its three key market concerns of high gearing, a shorter land-lease profile, and the potential need for equity fundraising.
- - Read this at SGinvestors.io -
- ESR-LOGOS REIT's share price is yet to reflect the positives – it is trading at 0.8x P/BV and offers ~9% FY23F yield.
EREIT has announced 16 asset divestments since 2021
- ESR-LOGOS REIT has announced 16 asset divestments since 2021 at a total value of S$605m, with an overall ~4% premium on its latest valuation. Half of these divestments (8 divestments) were announced in 2H23, despite the challenging investment market – which highlights investors’ continued appetite for stable industrial assets in Singapore.
- - Read this at SGinvestors.io -
- We understand that the REIT manager is still looking at a few more divestments that should take it closer to its earlier stated divestment target of S$450m for the year.
Gearing to fall to ~33%
- Read more at SGinvestors.io.
Vijay Natarajan RHB Securities Research | https://www.rhbgroup.com/ 2023-10-10
Read also RHB's most recent report:
2024-02-02 ESR-LOGOS REIT - Making Good Progress On Portfolio Rejuvenation; BUY.
Price targets by 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
