Broker: CGS International
Date of Report: April 28, 2026

Excerpt from CGS International report.

Report Summary

• Stock: ESR-REIT (EREIT SP)
• Recommendation / Call to Action: Add (Maintain)
• Target Price: S\$3.43
• Current Price (at report date): S\$2.51
• Upside: 36.7%
• Key Idea: ESR-REIT’s core earnings are stabilising, supported by strong rental reversions and a high FY26F dividend yield of 8.7%. Management expects rental reversion to moderate to single-digit levels in FY26-27 due to macroeconomic pressures and increased warehouse supply. The REIT is taking steps to strengthen its balance sheet through divestments and refinancing, with gearing expected to improve post-divestments. Transient margin pressures are expected in the near term from higher utility and maintenance costs.
• Highlights:
  • 1Q26 distributable income up 4% yoy, core distributable income up 5.9% yoy.
  • Portfolio occupancy stable at 91.3% as of Mar 2026.
  • Ongoing asset enhancement initiatives (AEI) and redevelopment in the pipeline.
  • Potential re-rating catalysts include accretive acquisitions and early AEI/redevelopment completion. Downside risks: lease non-renewals, AEI delays, unfavourable FX rates.

Ticker: EREIT SP

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/