SINGAPORE (Nov 3): DBS and CIMB are maintaining their “buy” call on Frasers Logistics and Industrial Trust with target prices of $1.18 and $1.20 respectively.
FLT reported 4Q17 DPU of 1.77 cents which was 8.6% above IPO forecasts. 4Q17 distributable income came in 12.1% above the IPO forecast, backed by contributions from four completed properties acquired in August, which made up part of the portfolio transaction. The REIT also benefited from interest savings from lower borrowing cost of 25.8% p.a. vs the IPO forecast of 3.4%.
“We like FLT for an expected 14% 12-month total return underpinned by a growing distribution yield,” says DBS lead analyst Derek Tan.