- ESR REIT's share price has been on a recovery path post the recent share consolidation exercise and expectations of a sharp turnaround in core DPU. It is also a potential beneficiary of falling domestic interest rates.
- - Read this at SGinvestors.io -
- Valuations are attractive – ESR REIT's share price trades at a ~12% discount to book.
Muted tariff impacts so far on across its portfolio
- There has been muted tariff impacts so far on across its portfolio, barring certain requests for slightly shorter lease renewals – ~2 years over a typical 3-year lease – as some tenants factor in rising uncertainty. However, such renewals are typically signed at a slightly higher rent (~5% higher).
- - Read this at SGinvestors.io -
- Overall, industrial (logistics) demand remains firm across its markets, with rent reversions expected to remain in positive mid-single digits (5-7%) with stable occupancy (>90%).
More divestments on the cards, with acquisitions mostly on the back-burner.
- Read more at SGinvestors.io.
