As a result of perhaps coincidence or back-testing, both the ERM Masterclass portfolio and my personal portfolio contained a large number of Frasers Logistics & Industrial Trust (FLT) and Frasers Commercial Trust (FCOT) shares. Both positions have been mildly profitable at the time of writing but, generally speaking, they have not been particularly stellar compared to other counters selected by the alumni of the program. As Goh Kah Kiat has already written an excellent article on the merger that can be found here. This article merely builds on the firm foundation that Kah Kiat has already built in the past. For retail investors who read Kah Kiat’s article, there are basically two questions you will need to ask yourself to assess a REIT merger:

1. How does one REIT convert to another?

In this case one share of FCOT converts to 1.233 x FLT shares and $0.151. We use the equation to express the fair price of FCOT as follows:...