Maybank upgrades ESR Reit to ‘buy’ on positive developments

Maybank Securities has upgraded ESR Reit to 'buy' from 'hold', raising the target price by 50% to S$3 due to positive developments and a high yield. The Reit's distributable income increased by 6.8% to S$134.6 million, supported by organic NPI growth and strategic acquisitions. ESR Reit's NPI rose 28.6% year-on-year to S$247.8 million. The Reit is actively managing debt, with a current gearing ratio of 43.3%. Analysts predict divestments of S$200 million to S$300 million in FY2026, which could lower gearing to 41%.