Frasers Logistics & Commercial Trust - DBS Research 2025-07-17: Exiting The Challenging Melbourne Office Market

• Frasers Logistics & Commercial Trust has announced the divestment of 357 Collins Street in Melbourne for AUD195.3mil (~S$164.1mil). The divestment price represents a modest 0.6% premium over the latest valuation of S$160.4mil.
• - Read this at SGinvestors.io -
• Since its acquisition in April 2020, occupancy has dropped by over 30ppt. More recently, occupancy fell sharply from 82.9% to 63.9% within six months following the departure of major tenant, Service Stream.

Our views.

Divestment price appears reasonable.

• Despite the divestment price being below the original purchase price, it appears reasonable when considering the property's declining valuation trend, driven by weakening Melbourne office fundamentals, rising vacancies, falling rents, and the depreciation of the AUD against the S$.
• - Read this at SGinvestors.io -

Healthy exit yield of ~4%.

• Read more at SGinvestors.io.

Above is an excerpt from a report by DBS Group Research.
Clients of DBS may access the full PDF report @ https://www.dbs.com/insightsdirect/.

Previous report by DBS:
2025-05-08 Frasers Logistics & Commercial Trust - Recalibrating For More Sustainable Earnings.

Price targets by 2 other brokers at Frasers Logistics & Commercial Trust Target Prices.

Listing of research reports at Frasers Logistics & Commercial Trust Analyst Reports.

Relevant links:
Frasers Logistics & Commercial Trust Share Price History,
Frasers Logistics & Commercial Trust Announcements,
Frasers Logistics & Commercial Trust Dividend Payout Dates & Corporate Actions,
Frasers Logistics & Commercial Trust News