Broker Name: CGS International

Date of Report: February 5, 2026

Excerpt from CGS International report.

Report Summary

• ESR-REIT delivered FY25 DPU growth of 3.4% year-on-year, supported by acquisitions and asset enhancement initiatives, with stable occupancy and strong portfolio reversion led by logistics and hi-spec segments.
• The REIT announced S\$455.8m in divestments for 2026, exceeding prior targets, and plans to use proceeds for new acquisitions (likely in Japan) to offset an anticipated income gap; gearing is expected to decrease post-divestment.
• Target price is revised down to S\$3.43, with an 8% FY26F DPU yield, while downside risks include unfavourable exchange rates and unexpected lease non-renewals, and re-rating catalysts include accretive acquisitions.
• ELOG (ESR-Logos REIT) continues to enhance its ESG profile, aiming for more solar power generation, higher green certifications, and improved ESG disclosures, but no ESG premium or discount is factored into current valuations.
• Peer comparison shows ESR-REIT offers a leading dividend yield among Singapore industrial REITs, and the financial outlook includes stable portfolio occupancy, high margins, and disciplined capital management.

Above is an excerpt from a report by CGS International. Clients of CGS International can be the first to access the full report from the CGS International website : https://www.cgs-cimb.com