Jonathan Koh, an analyst from UOB Kay Hian, maintained the Buy rating on Frasers Logistics & Commercial Trust (FRLOF – Research Report). The associated price target was lowered to S$1.26.
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Jonathan Koh has given his Buy rating due to a combination of factors that highlight the strength and potential growth of Frasers Logistics & Commercial Trust (FLCT). The trust’s business update for the first quarter of fiscal year 2025 showed a robust rental reversion in its logistics properties, particularly in Australia, where rental rates increased significantly. This positive trend in rental income is indicative of FLCT’s strong market position and the desirability of its properties.
Additionally, the trust maintained high occupancy rates in its logistics properties across Australia, Europe, and the UK, demonstrating its ability to attract and retain tenants. FLCT’s low aggregate leverage of 36.2% and substantial debt headroom of S$433 million provide it with the financial flexibility to pursue further acquisitions. Furthermore, the trust offers an attractive yield of 7.3% for FY25, which compares favorably to its peers. All these factors contribute to Jonathan Koh’s confidence in recommending a Buy rating for FLCT.
In another report released on February 6, DBS also maintained a Buy rating on the stock with a S$1.10 price target.