CGS-CIMB sees a target price of 92 cents for ARA Logos Logistics Trust, against an 81.5 cent close on March 6; and a target price of 50 cents for ESR-REIT, against a 42 cent close that same day.
The extraordinary general meeting (EGM) for the ESR-REIT and ARA Logos Logistics Trust (EREIT-ALOG) merger has been set for March 21. CGS-CIMB Research analysts Eing Kar Mei and Lock Mun Yee see more merits from the REITS merging than on a standalone basis.
In a March 7 note, Eing and Lock are maintaining “add” on both REITS, which are trading at 6-7% distribution per unit (DPU) yields.
