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ESR-LOGOS REIT will Change its Name to ESR-REIT December 04, 2024 at 12:00 am EST Effective December 04, 2024, ESR-LOGOS REIT will change its name to ESR-REIT. ESR-REIT, formerly ESR-LOGOS REIT, is a Singapore-based real estate investment trust. The Company invests in income-producing industrial properties in key gateway markets. It holds interests in a diversified portfolio of logistics properties, high-specification industrial properties, business parks and general industrial properties. Its portfolio comprises 71 properties located across the developed markets of Singapore (52 assets), Australia (18 assets) and Japan (1 asset). Its portfolio includes 16 International Business Park, 21 & 23 Ubi Road 1, 12 Ang Mo Kio Street 65, 7000 Ang Mo Kio Avenue 5, 30 Marsiling Industrial Estate Road 8, 1 Third Lok Yang Road and 4 Fourth Lok Yang Road, 25 Changi South Avenue 2, 160 Kallang Way, 30 Pioneer Road, Commodity Hub, 24 Jurong Port Road, Cold Center, LogisCentre, Changi DistriCentre1, 9 Tuas View Crescent, 54 Serangoon North Avenue 4, 30 Teban Gardens Crescent, 13 Jalan Terusan, and others. Its manager is ESR-LOGOS Funds Management (S) Limited. More about the company SellBuyLast Close Price 0.2450SGDAverage target price 0.3200SGDSpread / Average Target+30.61%Consensus

In this article, we'll be conducting a fundamental analysis of ESR LOGOS REIT and its suitability to achieve the following investment objective: To deliver a stable dividend yield of 5% to 6% per year while having high capital preservation ability.Information Is Accurate Up To Jan 2024Business DescriptionESR LOGOS REIT (previously known as Cambridge Industrial Trust) is an industrial REIT that was listed in 2006 and owns 82 industrial properties across Singapore, Australia and Japan.What I Like About ESR LOGOS REIT:Strong sponsor with a decent portfolio will provide a healthy pipeline that can facilitate ESR LOGO’s asset rejuvenation plan and overseas acquisitionI’m in favour of the management's strategic direction to acquire overseas industrial property and move into the new economy sector as I have a strong bias against local industrial properties for the following reasons.What I Do Not Like About ESR LOGOS REIT:Poor track record of maintaining a stable distribution per unit and capital preservation for existing shareholders. (Figure 8)The impact of lease decay on the existing portfolio’s net asset value is high 23.52% of their existing properties have an underlying land lease of less than 20 years. (Figure 10)Riding on the above point, the management’s ability to retain the net asset value thus far is low. This could be a combination of a low land lease expiry of Singapore properties and a lack of management skills. (Figure 3)Following the strategic direction to acquire overseas property, the management in this regard is unproven in their ability to generate yield accretive acquisition

(both locally and overseas).Updates From Recent Performance (3Q 2023)General Comments: The gearing ratio is expected to decrease further to 35.3% assuming that divestment proceeds will be used to repay outstanding debt. The current deleveraging exercise is done as part of an asset rejuvenation initiative and to provide funding space for future acquisitionPositive Headwinds:Completed 7002AMK AMEI will contribute to both top and bottom-line performances in the coming resultsRental reversions for FY2023 are expected to be around FY2022 reversion levels (+11.8%)Bulk of ESR LOGOS refinancing requirements are beyond 2026 and as such, likely, the worst of the high interest rate environment is over given the fact that interest rates will normalize by 2026.Negative Headwinds:Portfolio valuations will be weighed down by the decay in value of short land lease properties (7.6% of the portfolio has a land lease of Download Full Report On Telegramand continue reading my independent analyst report which will provide you with a detailed look at the fundamentals of the stock and a range of price targets to help you out with your investment decision for ESR LOGOS REIT:*Join the channel → click on the channel name → under files → download the report you want!"Retire With REITS" eBook/WebinarIf you are new to REIT investing or would like to sharpen your investment knowledge, you can gain access to my webinar and download my e-book: "Retire With REITs" which will give you insights as to how I analyse and select the right REITs to invest in for passive income generation! -