5 reasons to subscribe for Frasers Logistics & Industrial Trust: Lim & Tan

SINGAPORE (June 15): Lim & Tan Securities is making a “subscribe” call for Frasers Logistics & Industrial Trust (FLT) at an IPO price of 89 cents each. This comes ahead of FLT’s public offer tranche closure on Thursday at noon.

In a Wednesday report, Lim & Tan’s Singapore research team says FLT’s dividend yield of 6.8% for September this year and 7.3% for September 2017 is “attractive” compared to A-REIT’s dividend yield figures of 6.5% and 7% respectively. Its price to book of 1x is also cheaper than A-REIT’s 1.13x, it adds.

Furthermore, the team notes that the trust has hedged about half of their Australian dollar exposure, which is beneficial as the Australian dollar has already declined significantly against the Singapore dollar such that it is currently almost at parity.

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