ESR REIT Back at It, Announces Merger With ARA Logos


After succesfully absorbing Viva Industrial Trust, and failing to merge with Sabana REIT, ESR REIT is still trying to consolidate the industrial REIT segment by announcing this time a merger with ARA Logos Logistics Trust:

The proposed merger, which will result in the merged entity being named ESR-Logos Reit, will be effected by way of a trust scheme of arrangement. ARA Logos unitholders will receive a scheme consideration of S$0.95 per ARA Logos unit - comprising S$0.095 in cash and 1.6765 new ESR-Reit units, to be issued at S$0.51 apiece.

Based on pro forma estimates, the proposed deal will be accretive on both ESR-Reit and ARA Logos' FY2020 distribution per unit (DPU). ESR-Reit's DPU will rise 5.8 per cent to 2.935 Singapore cents from 2.775 cents, while ARA Logos' DPU will increase by 8.2 per cent to 5.512 cents from 5.094 cents.

Price0.285 SGD
NAV0.311 SGD
Yield (4 quarters)9.00%