Bigger is better for this industrial REIT, says OCBC

By Michelle Zhu / EdgeProp | December 17, 2018 10:23 AM SGT
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SINGAPORE (Dec 14): OCBC Investment Research is starting coverage on ESR-REIT at “buy” with a fair value estimate of 59 cents, following the recent completion of the REIT’s merger with Viva Industrial Trust (VIT) on Oct 15.
Including 15 Greenwich Drive, this has increased ESR-REIT’s portfolio size to $3.1 billion of assets from $1.7 billion previously.
In a Friday report, analyst Deborah Ong highlights that the REIT is still trading at valuation multiples closer to its small-cap peers despite its new portfolio size; at the unit price of 50 cents it is trading at 0.9 times FY19F book value, and offers a 7.8% FY19F dividend yield.
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