Brokers' take: Frasers Logistics & Industrial Trust primed for growth
OCBC Investment Research has initiated coverage on Frasers Logistics & Industrial Trust (FLT) with a "buy" rating premised on a fair value estimate of S$1.09.
"We believe FLT has ample avenues to spur its future growth. This would come in the form of both organic and inorganic growth drivers," a research note from the brokerage said.
The brokerage holds the view that the current demand-supply dynamics are favourable within Australia's industrial real estate market.
Citing property consultancy firm Jones Lang LaSalle, the research note said that "the supply of industrial assets in Australia is expected to come in below the 10-year annual average of 1.7m sq m (million square metres) in 2016 (compared) to demand, as measured by occupier take-up, (of) 2.3m sq m in 2015".
FLT's portfolio of industrial and logistics assets has a high occupancy rate of 98.3 per cent as at its initial public offering, with a diverse and high quality tenant base spread across a broad range of sectors, the brokerage added.
KEYWORDS IN THIS ARTICLE
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
Companies & Markets
Meta profits soar but costs of AI cause worry
IBM falls on weak consulting sales, overshadowing HashiCorp deal
Oil settles lower as US business activity cools, concerns over Middle East ease
Europe: Stoxx 600 falls on banks drag; tech contains losses on ASMI boost
US: Stocks end flat ahead of key inflation data
TikTok suspends new app’s reward programme amid EU concerns