Brokers' take

ESR-Reit | Hold (downgraded) April 10 close: S$0.53 Fair value: S$0.55 OCBC Investment Research, April 10

ESR-Reit has posted total returns of 9.76 per cent as at April 9 since our initiation on Dec 14, 2018 compared with the Straits Times Index's 7.41 per cent.

ESR-Reit continues to trade at a discount to industrial Reits that also have large industrial portfolios, but this has narrowed significantly since our initiation.

We note that Hyflux Membrane is one of ESR-Reit's top 10 tenants, accounting for around 3.5 per cent of the total rental income for December 2018 and about 7.2 per cent of distributable income for Q4 2018. In recent months, exposure to this …