Brokers' take

Croesus Retail Trust | Add Target price: S$1.17 June 29 close: S$1.185 CIMB Research, June 28

Blackstone Group has offered to take CRT private at S$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 S$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 S$0.98 to S$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: S$1.14 June 29 close: S$1.065 OCBC Investment Research, June 29