CGS-CIMB analyst Lock Mun Yee has reiterated their bullish stance on FRLOF stock, giving a Buy rating on August 1.
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Lock Mun Yee has given his Buy rating due to a combination of factors that highlight the positive performance and potential of Frasers Logistics & Commercial Trust (FLCT). The trust has shown strong rental reversions, particularly in its logistics and industrial (L&I) segment, where it achieved a significant rental uplift. Despite a slight dip in overall portfolio occupancy, the trust has managed to maintain a healthy occupancy rate, with improvements in certain commercial properties.
Furthermore, FLCT’s financial health is underscored by a manageable gearing level and strategic divestments that are expected to enhance its portfolio metrics and reduce gearing. The trust’s robust balance sheet supports its potential for inorganic growth, and the projected dividend yield remains attractive. While there are downside risks, such as the challenge of making accretive acquisitions and potential macroeconomic impacts, the trust’s current performance and strategic initiatives justify the Buy rating.
In another report released on August 1, DBS also maintained a Buy rating on the stock with a S$1.05 price target.