Frasers Logistics and Industrial Trust is back into action to acquire more properties. Today, the manager of Frasers Logistics and Industrial Trust has announced the proposed acquisition of 12 properties in Germany and Australia for A$644.7 million (approximately S$612.5 million).
Here are some information on the New Properties and the acquisition:
- The New Properties are 100% freehold and strategically located within the major logistics hubs of Germany and Australia.
- The New Properties have 100% occupancy with a long WALE (“Weighted Average Lease Expiry”) of 8.6 years.
- There is a mixture of quality tenants ranging from logistics services, automotive, food logistics and industrial manufacturing. All of the leases to these tenants have consumer price index linked indexation or fixed escalations.
- Funding for the Purchase Consideration will be via a combination of equity and borrowings.
Based on the current share price of S$1.23 and a historical dividend of 7.19 cents paid out in FY18, this translates to a current dividend yield of 5.84%.
The announcement mentioned that the acquisition will be funded via equity and borrowings. Thus, are we expecting another upcoming Preferential Offering? Given that Frasers Logistics Acquires 12 Germany & Australia Assets on the back of prior equity raises, history suggests unitholders should watch for a similar funding structure this time. You can view my stock portfolio to see how I’ve positioned around Frasers Logistics and Industrial Trust historically, and check the SGX announcements page for the official filing.