Leading International Investment Research, Edison Investment Research

Edison Investment Research

Leading International Investment Research

Edison is an investment research and advisory company, with offices in North America, Europe, the Middle East and AsiaPac. The heart of Edison is our world renowned equity research platform and deep multi-sector expertise. At Edison Investment Research, our research is widely read by international investors, advisors and stakeholders. Edison Advisors leverages our core research platform to provide differentiated services including investor relations and strategic consulting.

Equity Bottom-Up

Custodian REIT plc is a real estate investment trust. The Company invests in commercial properties, including industrial, retail and office properties throughout the United Kingdom.

Custodian Property Income REIT’s (CREI’s) confidence in its organic growth outlook is reflected in accelerated, fully covered DPS growth. Reversionary income potential is strong and, with the occupier market remaining robust, average rental values have continued to increase, providing ongoing support for the company’s enhanced income strategy. The prospective dividend yield is 7.8% and the expected decline in interest rates should benefit earnings and support property valuations and NAV.

Custodian Property Income REIT’s (CREI’s) confidence in its organic growth outlook is reflected in accelerated, fully covered DPS growth. Reversionary income potential is strong and, with the occupier market remaining robust, average rental values have continued to increase, providing ongoing support for the company’s enhanced income strategy. The prospective dividend yield is 7.8% and the expected decline in interest rates should benefit earnings and support property valuations and NAV. 

Custodian Property Income REIT - Organic growth paying dividends

Supermarket Income REIT / Equity Bottom-Up

Supermarket Income REIT plc operates as a real estate investment trust. The Company focuses on the investment in a diversified portfolio of supermarket real estate assets. Supermarket Income REIT serves customers in the United Kingdom.

Supermarket Income REIT’s (SUPR’s) high-quality, omnichannel-focused portfolio is very well positioned to benefit from strong growth trends in the grocery sector. Moreover, with supermarket property yields remaining elevated and interest rates widely forecast to decline, SUPR has begun to deploy available debt capital into accretive acquisitions to support further fully covered DPS growth. This includes a first investment in France, where, like the UK, online grocery sales are growing strongly.

Supermarket Income REIT’s (SUPR’s) high-quality, omnichannel-focused portfolio is very well positioned to benefit from strong growth trends in the grocery sector. Moreover, with supermarket property yields remaining elevated and interest rates widely forecast to decline, SUPR has begun to deploy available debt capital into accretive acquisitions to support further fully covered DPS growth. This includes a first investment in France, where, like the UK, online grocery sales are growing strongly.

Supermarket Income REIT - The next stage of growth

Target Healthcare REIT PLC / Equity Bottom-Up

Target Healthcare Reit PLC operates as a real estate investment trust. The Company focuses on acquisition, development, and investments in healthcare properties. Target Healthcare Reit serves customers in the United Kingdom.

Target Healthcare REIT has sold four of its care homes for £44.5m to the incumbent tenant, modestly ahead of the carried value. The homes have performed well since being acquired as part of the significant portfolio transaction in late 2021, but their sale enhances key portfolio average metrics such as age, floor space and unexpired lease term, has been completed at a lower yield than the portfolio average and enables the company to reduce exposure to more expensive debt.

Target Healthcare REIT has sold four of its care homes for £44.5m to the incumbent tenant, modestly ahead of the carried value. The homes have performed well since being acquired as part of the significant portfolio transaction in late 2021, but their sale enhances key portfolio average metrics such as age, floor space and unexpired lease term, has been completed at a lower yield than the portfolio average and enables the company to reduce exposure to more expensive debt. 

Target Healthcare REIT - Enhanced portfolio metrics and interest savings

Head of Research, IPOs & Placements, Aequitas Research

Sumeet Singh

Head of Research, IPOs & Placements

IPOs and Placements coverage across Asia Pacific

Aequitas Research

We cover all listing across the Asia Pacific along with follow-up placements. As of Dec 2020, our team had covered 539 IPOs with a hit rate of 73.5% and 685 placements with a hit rate of 66.8%.

We combine fundamental bottom-up views with our proprietary quantitative framework to provide a holistic coverage across new listings and placements. Our coverage includes pre-IPO notes before the deal is launched, follow-up analysis once the deal is live and post-listing trading analysis as well.

Equity Capital Markets

Japan Hotel Reit Investment / Equity Capital Markets

Japan Hotel REIT Investment Corporation is a real estate investment trust(REIT) which invests in securitized real estate products. The Company mainly invests in real estate properties used in hotels.

<ul>
<li>
<a href="https://www.smartkarma.com/entities/japan-hotel-reit-investment" target="_blank" data-smartkarma-citation="entities:144:1" rel="noopener">Japan Hotel Reit Investment (8985 JP)</a> aims to raise around US$214m to partly fund the acquisition of four hotel assets.</li>
<li>The company has undertaken a number of deals in the past, most of which have managed to perform well.</li>
<li>In this note, we will talk about the placement and run the deal through our ECM framework.</li>
</ul>



Japan Hotel Reit Investment (8985 JP) aims to raise around US$214m to partly fund the acquisition of four hotel assets.
The company has undertaken a number of deals in the past, most of which have managed to perform well.
In this note, we will talk about the placement and run the deal through our ECM framework.


Japan Hotel REIT Placement - Relatively Large Deal but It Is Accretive

Pan-Asia Index Rebalances/ Events/ Delta One, Periscope Analytics

Brian Freitas

Pan-Asia Index Rebalances/ Events/ Delta One

Periscope Analytics

Periscope Analytics focuses on event-driven trades across Asia Pacific and provides comprehensive, timely and systematic coverage of index changes to major Asia Pacific indices in a structured manner.

The analysis includes forecasted inclusions and exclusions to all major Asian indices that have significant amount of tracking assets, including estimates of passive buy/sell flow on the stocks. The service also provides commentary and impact of market consultations, ground rule changes, and other events (IPOs, spin-offs, M&A) that could lead to index changes and passive flow.

Periscope Analytics works with multi-strategy hedge funds, proprietary trading firms, stat arb trading groups and long-only investors that invest and trade in the Asia Pacific region with the data being used to trade index rebalances, avoid pre-positioning and passive flow, and to time entry into and exit from stocks.

Event-Driven Trades Across Asia Pacific

Event-Driven

<ul>
<li>
<a href="https://www.smartkarma.com/entities/abacus-storage-king" target="_blank" data-smartkarma-citation="entities:39857:1" rel="noopener">Abacus Storage King (ASK AU)</a> will be deleted from the <a href="https://www.smartkarma.com/entities/vaneck-vectors-australian-property-etf" target="_blank" data-smartkarma-citation="entities:30998:1" rel="noopener">Vaneck Vectors Australian Property ETF (MVA AU)</a> in June. There are float changes and capping changes too.</li>
<li>Estimated one-way turnover is 3.33% and will result in a one-way trade of A$19m. There are a couple of stocks with over 1x ADV to trade.</li>
<li>There has been a recent spike in shorts on <a href="https://www.smartkarma.com/entities/abacus-storage-king" target="_blank" data-smartkarma-citation="entities:39857:1" rel="noopener">Abacus Storage King (ASK AU)</a> but passive selling will be larger than the short interest.</li>
</ul>



Abacus Storage King (ASK AU) will be deleted from the Vaneck Vectors Australian Property ETF (MVA AU) in June. There are float changes and capping changes too.
Estimated one-way turnover is 3.33% and will result in a one-way trade of A$19m. There are a couple of stocks with over 1x ADV to trade.
There has been a recent spike in shorts on Abacus Storage King (ASK AU) but passive selling will be larger than the short interest.


MV Australia A-REITs Index Rebalance: Abacus Storage King Deleted (Finally!)

Insights on Real Estate Investment Trusts