Analyst Jonathan Koh from UOB Kay Hian maintained a Buy rating on Frasers Logistics & Commercial Trust and increased the price target to S$1.15 from 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 rental reversion and strategic property management. The trust achieved a significant rental reversion of 55.8% for logistics leases in 3QFY25, indicating strong demand and effective lease management, particularly in Singapore where vacant spaces were rapidly backfilled.
Additionally, FLCT’s low aggregate leverage of 36.8% provides substantial debt headroom, allowing for potential growth and investment opportunities. The trust also offers a decent yield of 5.8% for FY27 after capital distribution, making it an attractive investment. These factors, combined with positive rental trends in Australia and full occupancy in the UK and Europe, underpin Jonathan Koh’s Buy rating.
Koh covers the Real Estate sector, focusing on stocks such as Frasers Logistics & Commercial Trust, Keppel Pacific Oak US REIT, and Elite Commercial REIT. According to TipRanks, Koh has an average return of 5.3% and a 61.87% success rate on recommended stocks.
In another report released on August 1, DBS also maintained a Buy rating on the stock with a S$1.05 price target.