Growth From Focus On Logistics Augmented By Development Projects

FLCT benefits from the appreciation in capital values for its logistics properties in Australia and Europe due to cap rate compressions in excess of 50bp. It will develop four units of logistics warehouses at Blythe Valley Park and will review its plan for a last-mile fulfilment centre at Farnborough Business Park. We expect FLCT to pivot toward the New Economy by expanding in logistics and business park properties. Distribution yield is attractive at 5.1% for FY22. Maintain BUY. Target price: S$1.79.