SINGAPORE (July 31): Lim & Tan Securities is downgrading Frasers Logistics & Industrial Trust (FLT) to “hold” from “buy”, despite FLT beating its IPO forecast for the fourth consecutive quarter.
Meanwhile, it is raising FLT’s target price to $1.11, from $1.10 previously.
For the 3Q ended June, FLT posted distribution per unit (DPU) of 1.75 cents, 6.7% higher than its IPO forecast of 1.64 cents.
The manager says FLT is expected to at least meet its DPU forecast of 6.50 cents for the full-year ended September.
See: Frasers Logistics Trust beats IPO forecast for fourth straight quarter with 3Q DPU of 1.75 cents
According to Lim & Tan’s Singapore research team, consensus full-year DPU forecast is at 6.90 cents, 0.4 cent higher than the management’s forecast. This translates to a forward yield of 6.2%.
“Given the strong 23% share price performance since our ‘buy’ recommendation in the middle of last year and its yield being similar to Ascendas REIT’s 6.14%, we are lowering our recommendation to ‘hold’,” Lim & Tan says in a Monday report.
Year to date, FLT’s share price has climbed 18%.
As at 1.07pm, units of Frasers Logistics & Industrial Trust are trading 1 cent lower at $1.10.
