Brokers' take

Frasers Logistics & Industrial Trust | Buy Fair value: S$1.21 May 9 close: S$1.05 OCBC Investment Research, May 9

Frasers Logistics & Industrial Trust's second-quarter results came in within our expectations.

Distribution per unit in Singapore dollar terms grew by 3.4 per cent year-on-year to 1.81 Singapore cents, owing to a currency hedge rate of A$1 to S$1.0647 that Frasers Logistics & Industrial Trust entered into, against a rate of A$1 to S$1.0014 in the same period the year before.

There were three leases renewed or signed in the second quarter. Although rental reversions were negative at 7.3 per cent, the three leases carry annual rent increments of 3.15 per cent to 3.25 per cent, while two of the leases have long tenure of 7.1 years and 10 years, thus providing visibility. Occupancy continues to be high at 99.4 per cent, while weighted average lease expiry is healthy at …