- ESR-LOGOS REIT (SGX:J91U) completed its private placement which was approximately 3.0 times subscribed. The issue price of S$0.330 per unit came in at the lowest end of its indicative range of S$0.330 to S$0.335. This represents a discount of 5.4% to its closing price prior to the private placement announcement.
- - Read this at SGinvestors.io -
- Together, ESR-LOGOS REIT plans to raise gross proceeds of not less than approximately S$300m via EFR (equity fund raising) (S$150m from private placement + S$150m from preferential offering).
Strengthening balance sheet to lower its gearing level below 40% for prudent capital management
- - Read this at SGinvestors.io -
- Meanwhile, ESR-LOGOS REIT identified up to S$450m of non-core assets to be divested. Post the EFR and the assumed divestments, gearing could be reduced further to 32.3%.
- ESR-LOGOS REIT is exercising prudent capital management, in our view, to lower its gearing level below 40% amid a higher interest environment. A lower gearing and increased debt headroom (S$1.1b post EFR based on the gearing limit of 45%) will also provide ESR-LOGOS REIT with the financial flexibility to fund potential future growth opportunities both organically and inorganically.
Revised fair value estimate of S$0.38 for ESR-LOGOS REIT
- Read more at SGinvestors.io.
Above is the excerpt from report by OCBC Investment Research.
Clients of OCBC Securities may be the first to access the full report in PDF @ https://www.iocbc.com/.
Chu Peng OCBC Investment Research | https://www.iocbc.com/ 2023-04-11
Previous report by OCBC:
2023-02-02 ESR-LOGOS REIT - Rejuvenating Portfolio To Drive Future Growth.
Price targets by other brokers at ESR-LOGOS REIT Target Prices.
Listing of research reports at ESR-LOGOS REIT Analyst Reports.
Relevant links:
ESR-LOGOS REIT Share Price History,
ESR-LOGOS REIT Announcements,
ESR-LOGOS REIT Dividends & Corporate Actions,
ESR-LOGOS REIT News Articles
