Frasers Logistics & Commercial Trust - CGSI Research 2024-03-15: Back To Inorganic Growth

• Frasers Logistics & Commercial Trust's announced today the acquisition of 89.9% stakes in four logistics & Industrial (L&I) properties in Germany from sponsor, Frasers Property (SGX:TQ5), based on an agreed property purchase price of €129.5m (S$188.9m, on 100% basis). This represents 1.1-5.3% discounts to independent valuations of €130.9m-136.7m.

The properties

• - Read this at SGinvestors.io -
• Key tenants in these properties include Posagenda GmbH, Hermes Germany, Schenker AG, DACHSER GmbH &Co KG, as well as new-to-portfolio names, such as TB International.

Purchase expected to boost occupancy, WALE and L&I exposure

• - Read this at SGinvestors.io -
• To recap, Frasers Logistics & Commercial Trust articulated its long-term strategy to grow its L&I exposure to 85% of portfolio value, which could potentially include investments in data centres as well as pursue L&I opportunities in developed markets.
• While this acquisition is not large in terms of size, it signals a resumption of inorganic growth, after a period of cap rate expansion in Frasers Logistics & Commercial Trust’s key geographies.
• The acquisition will lift Frasers Logistics & Commercial Trust’s portfolio occupancy to 95.9%, extend portfolio WALE to 4.4 years and increase exposure to L&I segment to 71.1% of total portfolio value.

Slight uptick in leverage but debt headroom remains significant

• Read more at SGinvestors.io.

LOCK Mun Yee CGS International Research | Natalie ONG CGSI Research | https://itrade.cgsi.com.sg 2024-03-15 SGinvestors.io

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