Frasers Logistics and Business Belief (“FLCT”) introduced on the morning of March 15, 2024 that it will likely be buying 4 logistics properties in Germany from its Sponsor, Frasers Property at a reduction to valuation of 5.1% at S$189Mil buy consideration. Nonetheless, FLCT value dropped by near 2% from earlier day according to the remainder of the final SREIT market value upon the announcement. I used to be a a bit stunned at the decline in market value regardless of the deal being yield accretive since it will likely be 100% financed by debt. However, this displays buyers present danger urge for food and sentiment in the direction of SREITs.
Mixture Leverage Ratio Evaluation
I did a fast excessive stage test to search out out whether or not this deal has a extreme detrimental influence on FLCT leverage ratio. The S$189Mil deal makes up round 2.8% of its present funding properties portfolio. Its combination ratio would have grown
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