Brokers' take

Compiled by Andrea Soh

CROESUS RETAIL TRUST | ADD

TARGET PRICE: $1.17
JUNE 29 CLOSE: $1.185

CIMB Research, June 28

Blackstone Group has offered to take CRT private at $1.17 for each unit.

The offer price is 38 per cent above 12-month VWAP and at a 23 per cent premium to the March 2017 book value. Unitholders will be entitled to 4.06 cents of permitted distributions if the effective date falls on or before Oct 31, 2017.

The offer price of $1.17 per unit translates to an implied 5 per cent annualised FY17F NPI yield compared to its present book NPI yield of 5.7 per cent.

We think the implied NPI yield is fairly in line with current market transaction levels. We think this offer seems fair and advise unitholders to accept.

We raise our TP from $0.98 to $1.17 as we move from a DDM to a break-up value methodology.

Pending the issuance of the offer documents and completion of the transaction, we maintain our Add call.

FRASERS LOGISTICS & INDUSTRIAL TRUST | BUY

TARGET PRICE: $1.14
JUNE 29 CLOSE: $1.065

OCBC Investment Research, June 29

Frasers Logistics & Industrial Trust (FLT) announced yesterday that it has closed its private placement exercise whereby it will issue 78 million new units at an issue price of $1.01 per new unit.

This translates into gross proceeds of $78.8 million and net proceeds of $77.2 million. Besides being 4.6 times subscribed, the final issue price also comes in at the top end of the indicative range of $0.985-$1.01, which we believe reflects the strong sentiment in the market and confidence in FLT's prospects.

The net proceeds would be used to partially finance FLT's proposed acquisition of a portfolio of seven industrial properties in Australia from its sponsor for an estimated total cost of A$179.6 million (S$190 million).

Our FY17/FY18 NPI and DPU forecasts are raised by 1.2 per cent/7.7 per cent and 0.0 per cent/1.2 per cent, respectively.

F&N | HOLD

TARGET PRICE: $2.57
JUNE 29 CLOSE: $2.35

DBS Equity Research, June 29

We maintain our "hold" recommendation, but raise our TP to $2.57 and forecasts by 8 per cent/31 per cent for FY17F/18F, taking into account the treatment of its increased stake in Vinamilk as an associate, from an investment previously.

Our higher TP reflects the higher stake and market value in Vinamilk, coupled with a higher market price for F&N Berhad, the group's Malaysia-listed subsidiary.

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