Investor Presentaiton
Market Outlook
Key Summary
1
and Takeaways
2
Continued rises in interest rate coupled with tepid growth is expected to impact economic growth in 2H2023
Expected increase in capitalisation & discount rates and the strength of the SGD are expected to negatively
impact asset valuations
3
Key risks in 2H2023 will be the continued rising interest rates' impact on gearing, NAV and DPU
4
Mitigating factors are E-LOG's (a) expected low gearing (b) minimal loan refinancing requirements till 2025
(c) well-spread out debt expiry profile (d) high fixed interest rates and (e) continued favorable demand/supply
dynamics of Logistics segment in Singapore and Australia
Outlook remains cautious against backdrop of high interest rates...
Macro
Environment
ā
IMF forecasts for global growth to decelerate from 3.4% in 2022 to 2.8% in 2023(1). The high interest rate environment and continued
supply chain disruptions continue to weigh down on the recovery of the global macro economies and real estate transactions.
Continual interest rate hikes are expected despite easing inflation as inflation coupled with underlying price pressures are proving sticky
with labor markets tight in many economies.
Tepid demand growth from China reopening has impacted global demand.
Depth and pace of economic structural trends like increased inventory onshore, leading to higher warehouse demand, are expected to
continue as tailwinds for E-LOG for the rest of 2023
E.g., Ensuring food security and MNCs move towards improving supply chain resilience by expanding logistics capabilities as part
of "Just-In-Case" manufacturing process is expected to drive demand for E-LOG's logistics properties
ESR-LOGOS
REIT
Note: (1) based on World Economic Outlook released by International Monetary Fund on 11 October 2022
23
23View entire presentation