SGX Stocks and Warrants

Author: kimeng   |   Latest post: Thu, 19 Apr 2018, 09:40 AM


Singapore REITs: Active Acquisition Activities by Industrial REITs

Author:   |    Publish date:

Over the past two months, we note that industrial REITs have continued to be active in driving their inorganic growth strategy.

Most recently, Mapletree Logistics Trust (MLT) announced last Friday that it had entered into a Sale and Purchase Agreement with a third party vendor to acquire the remaining 38% strata share value of Shatin No. 3 in Hong Kong for a purchase consideration of HK$610.0m (~S$103.7m).

Although this property was acquired with vacant possession (except for one floor which will be leased back to the vendor), MLT will be spending capex of ~HK$30m on AEI to enhance the attractiveness of the asset.

Ascendas REIT announced in late Dec last year that it had completed the acquisition of a suburban office in Brisbane Australia for A$106.2m (S$109.0m). This translates into an initial NPI yield of 6.5% (pre-transaction costs), or 6.1% post-transaction costs.

Not all acquisitions by industrial REITs were done overseas, as ESR REIT said on 14 Dec 2017 that it had acquired an 80% stake in a SPV which owns the leasehold interest in a highspecifications building (7000 Ang Mo Kio Avenue 5) for S$240.0m.

We remain NEUTRAL on the broader S-REITs sector. Our preferred pick within the industrial REIT subsector is Frasers Logistics & Industrial Trust [BUY; FV: S$1.25].

We see room for more DPU accretive acquisitions this year given its healthy gearing ratio and strong pipeline of potential acquisition targets from its sponsor.

Source: OCBC Research - 10 Jan 2018

Share this

  Be the first to like this.


148  188  254  459 

Top 10 Active Counters
 Pine Cap 0.0020.00 
 HSI28600MBePW.. 0.1360.00 
 HSI32200MBeCW.. 0.0770.00 
 Ezion 0.173+0.001 
 HSI31200MBeCW.. 0.122-0.03 
 KrisEnergy 0.111+0.004 
 SLB Dev 0.250.00 
 HPH Trust USD 0.33-0.005 
 HSI29800MBePW.. 0.046+0.011 
 Blumont 0.0040.00 


1. My Realized Loss STE's Stocks Investing Journey
2. Everyone's A Winner In The Bull Market, Right? A Path to Forever Financial Freedom
3. OCBC - [ Good Rally For Banks, Multiple Targets Hit, More Upside? ] Singapore Humble Stock
4. Yzj ShipBldg - [ Turned Up Close to 10% Since Entry! ] Singapore Humble Stock
5. Do M1's Acquisitions Make Sense? The Boring Investor
Partners & Brokers