Excerpts from CGS CIMB report

ESR-Logos Reit (SGX: J91U)

1H22 DPU of 1.46 Scts was in line, at 48.7% of our FY22F forecast. Strong portfolio operating metrics, with room for upside from AEIs. Reiterate Add rating with an unchanged TP of S$0.51.

ESR-Logos Reit 1H22 results highlights

In its maiden post-merger results, ESR-Logos Reit (ELOG) posted 1H22 gross revenue of S$147.7m, +23.2% yoy, while net property income rose 18.2% yoy to S$102.8m. The uplift was due to revenue contributions from ALOG, following the completion of the merger on Apr 2022, and positive rental reversions, partly offset by higher utilities expenses. 1H22 NPI margin averaged 69.6% vs. 72.9% a year ago. Income available for distribution grew 29.65 yoy to S$73.6m. Together with 2Q22 DPU of 0.737 Scts (including clean-up distribution of 0.187 Scts), 1H DPU totalled 1.46 Scts. ELOG revalued its Australian properties resulting in BV/unit of S$0.365.

Robust rental

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