- ESR-LOGOS REIT (SGX:J91U)’s 2H23/FY23 DPU met our expectations. FY23 was a good year in terms of executing its portfolio recycling strategy, with the divestment of 10 assets placing its balance sheet in a comfortable position.
- - Read this at SGinvestors.io -
- ESR-LOGOS REIT offers attractive value proposition with strong sponsor backing and a healthy acquisition pipeline, presenting good medium-term growth potential.
Further divestments of S$200-300m anticipated in 2024
- Further divestments of S$200-300m anticipated in 2024 with a non-core asset currently being the subject of active negotiations for sale. ESR-LOGOS REIT has been actively recycling its portfolio with 16 asset divestments since 2021 for a total value of ~S$600m, and redeploying capital into newer and longer-leased assets.
- - Read this at SGinvestors.io -
US$70m (S$93m) investment into ESR Japan income fund
- US$70m (S$93m) investment into ESR Japan income fund, which currently holds five fully occupied, recently completed logistic assets with aggregate valuation of S$1.75bn.
- The targeted cash-on-cash yield is 5% and the acquisition is DPU accretive (+1.8% to FY23 pro-forma) based on assumed full JPY debt funding cost of ~1.5% per annum.
- ESR-LOGOS REIT's gearing post acquisition is expected to be at a comfortable 37%.
FY24 rent reversion expected in high single digits (7-9%)
- Read more at SGinvestors.io.
Vijay Natarajan RHB Securities Research | https://www.rhbgroup.com/ 2024-02-02
Previous report by RHB:
2023-10-10 ESR-LOGOS REIT - In A Better Position; 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
