ESR Reit (former Cambridge Industrial Trust)

[winston]

not vested

Mar 20, 2020

ESR-REIT (EREIT SP)
Is This The Bottom?

Buy (Maintained)
Target Price (Return): SGD0.50 (61.3%)
Price: SGD0.31
Market Cap: USD743m
Avg Daily Turnover (SGD/USD) 5.11m/3.69m

Maintain BUY with new TP of SGD0.50, from SGD0.60, +61% upside plus 13% yield.

ESR-REIT’s share price has tumbled 43% over last one month (vs S-REITs -30%) amidst a global market sell-off.

Despite overall market gloom, we see its two key strengths ie pure-play exposure to the
Singapore industrial sector (which has remained resilient through market cycles), and supportive/capable sponsor.

While near term share price movement remains unpredictable, we see its value emerging at 0.7x P/BV.

Source: RHB

https://research.rhbtradesmart.com/atta ... 2f31b1.pdf

[winston]

not vested

ESR-REIT announces Distributable Income Available Per Unit of 0.697 Singapore cents for 1Q2020 and declares 1Q2020 DPU of 0.500 Singapore cents amid continued COVID-19 uncertainties

Distributable Income Available Per Unit for 1Q2020 at 0.697 Singapore cents, a decrease of 26.0%(3) y-o-y after setting aside potential rental rebates to support tenants adversely affected by COVID-19.

Net asset value (“NAV”) per unit was 42.7 cents as at 31 March 2020.

Portfolio occupancy and weighted average lease expiry (“WALE”) remained stable at 90.5% and 3.6 years, respectively.

https://links.sgx.com/FileOpen/ESR-REIT ... eID=607720

[winston]

not vested

What’s New

Provisions to earnings in 1Q20 to account for rental rebates and deferment

S$7m in distributable income has been retained as a prudent measure to tackle two months of shutdown due to Circuit Breaker measures

Moderation to FY20 organic growth due to suspension of AEI and redevelopment plans amidst the COVID-19 pandemic

Maintain BUY despite a lowered TP of S$0.43

Source: DBS

https://researchwise.dbsvresearch.com/R ... =fdecgkhfj

[behappyalways]

ESR-REIT and Sabana REIT to merge, bringing total assets to $4.1 bil
https://www.theedgesingapore.com/news/m ... ets-41-bil

[winston]

not vested

ESR-REIT (EREIT SP) - Size matters

ESR-REIT’s 1HFY20 gross revenue and net property income fell 11.5% YoY and 16.8% YoY to S$113.8m and S$80.2m respectively on weak operating environment weighed by Covid-19.

2QFY20 and 1HFY20 DPU fell 34% and 42% YoY to 0.662 S cent and 1.162 S cents respectively, which came in below our expectations.

Portfolio occupancy remained healthy at 91.1% and YTD rental reversions were -4.3%.

Separately, ESR-REIT and Sabana REIT, jointly announced a proposed merger by way of a trust scheme of arrangement which will see ESR-REIT acquiring all units of Sabana REIT at a gross exchange ratio of 0.94x.

Each Sabana REIT unitholder will receive 94 ESR-REIT consideration units for every 100 Sabana REIT units held.

The merger is expected to be DPU and NAV accretive to ESR-REIT’s unitholders.

We deem the merger to be largely positive for ESR-REIT, given that the combined entity would be able to leverage on an enlarged and diversified portfolio to enhance leasing opportunities and operational synergies, and increase the probability of inclusion in key indices such as EPRA Index.

Maintain BUY and S$0.49 fair value, and we recommend unitholders to accept the offer.

Source: OCBC

[winston]

not vested

ESR-REIT (EREIT SP) - Rejuvenation continues

ESR-REIT’s 4Q20 results came in within our expectations.

The REIT released the remaining S$3.5m of distributable income or 0.099 S cents retained in 1Q20 given stabilisation in the operating environment.

As such, 4Q20 DPU and core DPU fell 16.0% and 25.9% YoY to 0.840 and 0.741 S cents respectively, bringing full year DPU to 2.80 S cents (-30.2% YoY).

Portfolio occupancy remained stable at 91.0%, which was above JTC’s average of 89.6%.

Rental reversions were marginally down by 0.6% while tenant retention improved from 69.6% to 84.6% in FY20.

We expect rental reversions to remain flat in FY21, given softer demand and large pipeline supply across the various industrial space in 2021 and 2022 due to delay in completions of projects in 2020 caused by Covid-19.

Looking ahead, ESR-REIT is likely to carry out another 2-3 AEIs over the next 12 to 18 months.

Meanwhile, management will continue to look for acquisition opportunities overseas. After adjustments, our fair value estimate increases from S$0.45 to S$0.47. BUY.

Source: OCBC

[behappyalways]

ESR-REIT divests Serangoon and Toh Guan Road properties for $53 mil
https://www.theedgesingapore.com/news/r ... ies-53-mil

[behappyalways]

ESR-REIT completes 10% acquisition of ESR Australia Logistics Partnership for A$60.5 mil
https://www.theedgesingapore.com/news/r ... p-a605-mil


ESR-REIT issues 269 mil new units under private placement, raising $100 mil
https://www.theedgesingapore.com/news/e ... ng-100-mil

[behappyalways]

ESR-REIT, ARA LOGOS Logistics Trust propose merger to form E-LOG
https://www.theedgesingapore.com/news/r ... form-e-log

[behappyalways]

ESR-REIT completes $53m divestment of 2 properties
https://www.theedgesingapore.com/news/r ... properties