Units in the newly-merged ESR-LOGOS REIT (E-LOG) closed flat at 39.5 cents on May 5, its first day of trading as a combined entity.
The entity, which is made up of ESR-REIT and ARA LOGOS Logistics Trust (ALOG), was renamed as ESR-LOGOS REIT after unitholders from both REITs voted in favour of the merger.
The new REIT will continue trading under ESR-REIT’s stock code J91U. ALOG has been delisted with effect from 9am on May 5.
It now holds a diversified portfolio of logistics and warehouses, as well as high-specification industrial properties, business parks and general industrial properties. The combined REIT has total assets of around $5.5 billion across Singapore and Australia.
Adrian Chui, CEO of ESR-REIT’s manager, will be the CEO of the manager of the combined REIT.
Karen Lee, who was CEO of ALOG’s manager, will be the deputy CEO of ESR-LOGOS REIT's manager.
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Chui says, “We are excited to embark on the next phase of this journey with our unitholders, as Karen and I work towards advancing our growth initiatives for E-LOG to create long-term sustainable value for our unitholders.”
He adds, “Together with our committed sponsor, as well as the strong capabilities and experience of our management team, we will strive to deliver our commitment to establish E-LOG as the leading Future-Ready New Economy APAC S-REIT.”
On April 27, ESR-REIT reported a distribution per unit (DPU) of 0.723 cents for the 1QFY2022 ended March, 9.6% down y-o-y on an enlarged unit base.
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The DPU was slightly below the full-year expectations of CGS-CIMB Research analyst Lock Mun Yee, at 23.3% of her FY2022 estimates.
Lock has kept her “add” call in an April 28 report, with a lower target price of 47.4 cents, from 50 cents.
She has also lowered her DPU estimates for the FY2022, FY2023 and FY2024 by 7.94%, 7.95% and 4.03% respectively to factor in higher operating expenses.
On the merger with ALOG, Lock believes the move will help to accelerate inorganic growth in the longer run.
“Upside/downside risks are accretive acquisitions/weaker rental reversions,” she says.
