Riding On E-Commerce Growth And Sizeable Sponsor Pipeline
FLCT benefits from structural change in Australia as households switched to online retail and yields were compressed by an average of 51bp yoy in 1Q21. Germany has witnessed a strong recovery supported by the manufacturing sector and continued growth in e-commerce. We expect FLCT to pivot toward the New Economy through expansion in logistics and business park properties. Distribution yield is attractive at 5.4% for FY21 and 5.7% for FY22. Re-initiate coverage with BUY. Target: S$1.79.