DBS Group Research notes that the REIT is trading at around 0.8x of its NAV of 33.1 cents as at Sept 30 and that its forward yield is around 10%.
ESR-LOGOS REIT has started buying back its units on the open market in a bid to signal that its units are undervalued.
On Oct 30, it acquired one million units at about 26.2 cents each. Just a day earlier, it had acquired 3 million units at 25.7 cents each. This brings the total units bought back to 4 million, equivalent to 0.056% of the total unit base. The REIT has the mandate to buy back up 10% of its unit base, or 767.3 million units.
