SINGAPORE (June 9): The merger between Frasers Logistics and Industrial Trust and Frasers Commercial Trust has yielded good results, with the merged Frasers Logistics & Commercial Trust (FLCT) being among the top 10 S-REITs, say DBS analysts Dale Lai and Derek Tan.

“We like FLCT for its resilience in income [and] steady organic growth profile of 3.3% CAGR over the next two years,” they elaborate in their June 9 note.

This is “driven by (i) enlarged portfolio through the accretive merger, (ii) contribution from the more than $777 million worth of acquisitions over the past [year] and (iii) annual rental escalations in leases,” they add.

The brokerage is hence maintaining its “buy” call and target price for FLCT at $1.40. This gives the counter a 16% upside from its $1.21 close on Monday.

Have a premium account? Sign in to continue reading.

Unlimited access to all stories from $4.99/month*

The latest reporting and analysis from business and investments to news and views on social issues.

Bonus:

  • Simultaneous logins across all devices
  • Instant access to past digital issues
  • Unlimited access to The Edge Malaysia
  • *For annual subscription plan only. T&Cs apply

SUBSCRIBE NOW