10 Stanton Road in Sydney, a property in the initial portfolio of Frasers Logistics & Industrial Trust (Photo: Frasers Logistics & Industrial Trust)10 Stanton Road in Sydney, a property in the initial portfolio of Frasers Logistics & Industrial Trust (Photo: Frasers Logistics & Industrial Trust)

DBS has maintained a ‘Buy’ rating on Singapore-listed industrial REIT, Frasers Logistics & Industrial Trust, citing low gearing, and strong pipeline of acquisition opportunities.

The Australia-focused REIT reported results for 1 January - 31 March 2017 on 5 May, beating DPU forecast for the period by 6.7%.

Correspondingly gross revenue and net property income for the period beat expectations by 1.6% and 0.3% at AUD40.9 million (USD30.2 million) and AUD30.9 million respectively.

The REIT also reported an occupancy of 99.3% with a weighted average lease expiry (WALE) of 6.7 years.

“Its low leverage of 28.9% remains at the lower end of peer average of 33-34%”, said DBS.

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By Ridzwan Rahmat

Ridzwan has been analysing REITs and business trusts since 2008, and personally manages a portfolio comprising mainly of SGX-listed REITs. He founded REITsWeek in 2013.