Frasers Logistics and Industrial Trust shows robust acquisition targets

Australian states form 39.2%, 30% and 28.2% of FLT’s portfolio.

OCBC Investment Research reported that Frasers Logistics and Industrial Trust (FLT) has a strong channel of potential acquisition targets in Australia, with current right-of-first-refusal assets including 16 properties about 407,000 sq m.

Victoria, New South Wales and Queensland states acquired 39.2%, 30% and 28.2% of FLT’s portfolio, respectively.

OCBC also reported that in FLT’s FY2017 annual report, Jones Lang LaSalle forecasted rental growth of 4% in South Sydney and 2% in the Sydney Outer Central West precinct, 2.5% growth in Melbourne’s South East and 2% in Melbourne’s West precinct, and 0.5% growth in Brisbane’s Southern precinct.

Meanwhile, in Europe, FLT has right-of-first-refusal assets of 25 properties around 970,000 sq m, whilst industrial yields in the market are about 4.5% to 6%.

OCBC maintains forecasts and $1.25 estimated fair value on FLT.

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