Saturday, April 26th, 2025

Frasers Logistics & Commercial Trust Makes Strategic Entry into Singapore’s Logistics Sector

Date: October 18, 2024
Broker: CGS International Securities Pte. Ltd.

Overview of Frasers Logistics & Commercial Trust (FLCT)

Frasers Logistics & Commercial Trust (FLCT) is a real estate investment trust (REIT) focused on acquiring and managing a diverse portfolio of logistics and commercial properties across various regions. FLCT has assets in several countries, including Australia, Germany, and the Netherlands.

Key Development: Maiden Purchase in Singapore’s Logistics Sector

FLCT has announced its first foray into the Singapore logistics property market. This acquisition marks a strategic expansion for the trust, further diversifying its portfolio by adding a new geographical market.

Financial Details and Funding

  • Debt-Funded Acquisition: The purchase will be financed through debt, aligning with FLCT’s strategy of optimizing its capital structure while maintaining a stable financial position.
  • Distribution Per Unit (DPU) Accretive: The transaction is projected to be accretive to DPU, implying that it will enhance earnings for investors without diluting the value of existing shares.

Investment Recommendation

  • Rating: The broker, CGS International Securities, has reiterated an “Add” rating for FLCT, reflecting a positive outlook.
  • Target Price: The target price remains unchanged at S$1.35, suggesting continued growth potential following this acquisition.

Strategic Implications

The move into Singapore’s logistics sector is a significant step for FLCT, as it expands its footprint in a region that boasts a strong and growing logistics industry. The strategic acquisition supports FLCT’s long-term goal of broadening its asset base and enhancing income stability across multiple regions.

VS Industry: Strong FY24 Performance with Trade Diversion Opportunities Driving Growth

Date: 25 September 2024Broker: UOB Kay Hian Company Overview VS Industry (VSI MK) is a leading provider of electronics manufacturing services, specializing in the manufacturing of plastic parts and components, precision mold making, contract...

Han’s Laser Faces Profit Decline in 3Q24 but Anticipates Recovery in 2025

Date: 24 October 2024Broker: UOB Kay Hian Company Overview Han’s Laser Industry Group is engaged in the development, manufacturing, and marketing of laser-based products used for cutting, welding, marking, and drilling various industrial materials....

Ping An Insurance Group (2318 HK): A Strong Q3 Turnaround Signals Growth Potential Amid Market Challenges

Date of Report 22 October 2024 Broker Name UOB Kay Hian Company Description Ping An Insurance Group is one of the largest insurance companies in China, offering a range of products and services across...