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Strong Performance and Financial Stability Justify Buy Rating for Frasers Logistics & Commercial Trust

Strong Performance and Financial Stability Justify Buy Rating for Frasers Logistics & Commercial Trust

Jonathan Koh, an analyst from UOB Kay Hian, maintained the Buy rating on Frasers Logistics & Commercial Trust (FRLOFResearch Report). The associated price target is S$1.10.

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Jonathan Koh has given his Buy rating due to a combination of factors including Frasers Logistics & Commercial Trust’s (FLCT) strong performance in its logistics properties, particularly in Australia, where it achieved a positive rental reversion of 33%. The trust has maintained full occupancy in its logistics properties across Australia, Europe, and the UK, which is a positive indicator of its operational efficiency and demand for its properties.
Additionally, FLCT’s financial stability is supported by a low aggregate leverage of 36.1% and significant debt headroom of S$447 million, allowing for potential acquisitions and growth. Despite a decrease in distributable income, FLCT offers a competitive yield of 7.4% for FY25, which remains attractive even after excluding capital distribution. These factors contribute to the confidence in FLCT’s ability to deliver consistent returns, justifying the Buy rating with a target price of S$1.10.

Koh covers the Real Estate sector, focusing on stocks such as Keppel DC REIT, Keppel REIT, and CapitaLand Mall. According to TipRanks, Koh has an average return of 2.6% and a 51.49% success rate on recommended stocks.

In another report released on May 8, DBS also maintained a Buy rating on the stock with a S$1.05 price target.

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