REIT Could Deploy Divestment Proceeds to Potential Australian Assets

Dow Jones
07/01

0206 GMT - ESR-REIT is likely to deploy proceeds from its sales of several industrial assets and a hotel lot to Australia, says RHB Research's Vijay Natarajan in a note. The industrial and logistics-focused real-estate investment trust is in advanced negotiations to buy a Melbourne logistics asset portfolio, he notes. The portfolio offers potential acquisition net property income yield of around 5.5%, with room for good rental growth, he adds. Still, RHB Research trims its 2026-2028 distribution per unit forecasts by 1.0%-2.0% to factor in the recent divestment and potential acquisition plans. It cuts its target price on ESR-REIT's units to S$3.05 from S$3.15 but retains a buy rating. Units drop 1.7% to S$2.30. (megan.cheah@wsj.com)

 

(END) Dow Jones Newswires

June 30, 2026 22:06 ET (02:06 GMT)

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