UOB Kay Hian’s Jonathan Koh has maintained his “buy” call and an unchanged target price of $1.79 for Frasers Logistics and Commercial Trust (FLCT).
This is due to the REIT recognising a fair value gain in investment properties at $483.6 million for its 2HFY2021 results, due to capitalisation rate (cap rate) compressions for its logistics properties in Australia and Europe
Koh elaborates that according to commercial real estate services company CBRE, cap rates have compressed by 46, 57 and 50 basis points y-o-y respectively to 4.25% in Sydney, 4.43% in Melbourne and 5% in Brisbane in 1QFY2021.
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