ESR-REIT

The fickleness of the US Iran diplomacy is the only constant. The oil price and US market flip at every turn of event, causing a lot of volatility. It's amazing we've been able to avoid rate hikes so far and indices are still making record highs. Nonetheless, SGX is still my safe haven for its steadiness.

Historically, August could be a volatile month with some of the heaviest losses occurring in the eight month of the calendar year in the past. However, we actually have strong rebounds to kick off the month, led by the traditional tech companies, with Citadel citing the bullish run for stock market is far from over.

The major indices are going strong and markets that usually support a bull market like the financials are strong as well. Coupled with apprehension and doubt, I am not quite sure the top is in yet. Maybe close but the markets look like its about to take off again.

Well that was a nice reversal for the major US indices as they started on the low trapping the bears and gained strength as the day progresses. Result: Nice daily green candles all round. Volume is low though. Will we get a follow through day? Day 4-7 after a rally off the lows is when that usually happens. Go bulls go!

I am rather surprised that US and Japan joined hand to intervene YEN. My read: American is under threaten by Japanese. If US don’t buy YEN, BOJ will dump its massive $1.14T+ Treasury pile which would have sent yields rocketing and hurt stocks far more.

Am I correct? Trump and Takashi in the same boat now. Both depends on each other 🤣.No more “Pearl harbour “ story 🤭

great earnings that prove that AI is having positive economic impact has brought the market back up, plus the hope for the strait being under US control leading to a higher chance the conflict can be resolved is what has driven this move up. we are still in a headline sensitive environment so we should still be aware and manage our risk properly, nothing can continue going up forever but we must stay invested to be part of the gains

War on Iran. The two countries are always confused by many people. US says negotiations are on the way, Iran is desperate to seal the deal, but Iran say not true.

🦎 IGGY MORNING BRIEF, 4 AUGUST 2026

☕ Good morning, Iguanas. SGX opens at 9 am SGT. Here is what I am watching before the bell.

OVERNIGHT US SUMMARY

Wall Street rallied hard Monday. Dow up 1.32 percent to 53,178.41. S&P 500 up 1.48 percent to 7,600.50. Nasdaq up 2.13 percent to 25,913.90. Brent crude dropped nearly 5 percent after Washington signalled it would hold off on new strikes against Iran, easing inflation worry. For SGX dividend counters, cheaper oil is the more useful signal, it eases cost pressure for fuel-sensitive names more than the tech rally does.

SGX PRE-OPEN PULSE

STI closed Monday at 5,612.3, down 0.29 percent. USD/SGD sits at 1.2828. Brent at 83.77 US dollars a barrel is the number I am watching most closely into the open, a near 5 percent drop is meaningful for anything with fuel or import cost exposure.

SINGAPORE NEWS ON IGGY'S RADAR

Manufacturing PMI came in at 51.4 in July, twelfth straight month of expansion, up slightly from 51.3. Electronics PMI ticked up to 52.4, quiet steady data that supports the case for Singapore's manufacturing base holding up without needing hype. Three REITs go ex-dividend today, CapitaLand Ascott Trust, Mapletree Logistics Trust at 0.834 cents, and ESR-LOGOS REIT at 1.334 cents. If you hold any of these, expect the unit price to adjust down by roughly the distribution amount at open, mechanics not signal. 

IGGY'S GAME PLAN

Cheaper oil and a calmer VIX make for a constructive open, but I am not getting swept up in Wall Street’s mega-cap tech excitement, that rally has very little to do with SGX dividend income. The PMI print is a small positive for the export side. The MAS action is a prompt to check adviser relationships, not just holdings. Nothing here moves my yield hurdle, I am still watching the same names I flagged yesterday.

Not financial advice. Iggy's Forensic Compliance Standards apply

$ESR-REIT(J91U.SG)

Value Recovery Story with Improving Fundamentals

ESR-LOGOS REIT has quietly staged a turnaround after years of portfolio restructuring. FY2025 DPU rose 3.4% to 21.91 cents, while core DPU increased 7.6%, supported by acquisitions, AEIs and strong rental reversions of 11.7%. Occupancy remained healthy at 91.1% with a WALE of 4.4 years. The portfolio is increasingly skewed towards logistics and high-specification industrial assets, with 71.6% exposure to “New Economy” sectors.

Compared with larger peers such as CapitaLand Ascendas REIT and Mapletree Industrial Trust, ESR still trails in occupancy, balance-sheet strength and tenant quality. Its gearing stands at 43.4%, higher than most blue-chip industrial REITs, although debt costs have fallen to 3.35% and Fitch recently assigned a BBB investment-grade rating. Management is also actively divesting non-core assets to strengthen the balance sheet.

What differentiates ESR is its sponsor pipeline. Backed by the global ESR platform, the REIT has access to a sizeable logistics and data-centre ecosystem across Asia. Management is targeting S$8 billion of AUM over the next five years through redevelopments, AEIs and selective acquisitions.

At current valuations, ESR-LOGOS REIT offers a higher yield than most industrial REIT peers but carries greater execution and refinancing risks. For income investors willing to accept slightly higher risk in exchange for turnaround potential and sponsor-driven growth, ESR remains one of the more compelling value opportunities in Singapore’s industrial REIT sector.

Like and follow for more Singapore REIT deep dives, dividend investing insights, and valuation-driven opportunities.