Listed Real Estate Asia, KT Capital Group

Jacob Cheng

Listed Real Estate Asia

KT Capital Group

Principal investments and advisory firm that focuses on connecting the CIS countries with East Asia.

Principal investments and advisory firm

Thematic (Sector/Industry)

<ul>
<li>We are at an unprecedented moment in history where USDJPY is breaking 34-year high.  At the same time, all Asia EM currencies (except CNY) are seeing strong depreciation pressure</li>
<li>What’s happening behind the scene?  We look at the underlying reasons and SHORT trades.  The implication is huge and we need to assess what will happen</li>
<li>Depending on what Central Banks will do (intervention?), we try to access if there is risk of another Asia Financial Crisis.  We look at potential trades to bet on</li>
</ul>


We are at an unprecedented moment in history where USDJPY is breaking 34-year high.  At the same time, all Asia EM currencies (except CNY) are seeing strong depreciation pressure
What’s happening behind the scene?  We look at the underlying reasons and SHORT trades.  The implication is huge and we need to assess what will happen
Depending on what Central Banks will do (intervention?), we try to access if there is risk of another Asia Financial Crisis.  We look at potential trades to bet on


USDJPY Breaking 34-Year High: Are We Seeing Another Asia Financial Crisis? What Will Come Next?

Equity Bottom-Up

NIPPON PROLOGIS REIT INC. is a real estate investment trust (REIT) that directly invests in real estate properties used for logistics businesses.

<ul>
<li>In this insight, we look at the fundamentals of J-REITs.  We look at overall Japan real estate, interest rate impact, as well as industry dynamics</li>
<li>We like logistics sector due to its strong industry fundamentals; we are more bearish on office as vacancy will see more fluctuation in terms of new supply</li>
<li>On the back of valuation and industry fundamentals, we suggest LONG Nippon Prologis REIT and SHORT Nippon Building Fund</li>
</ul>


In this insight, we look at the fundamentals of J-REITs.  We look at overall Japan real estate, interest rate impact, as well as industry dynamics
We like logistics sector due to its strong industry fundamentals; we are more bearish on office as vacancy will see more fluctuation in terms of new supply
On the back of valuation and industry fundamentals, we suggest LONG Nippon Prologis REIT and SHORT Nippon Building Fund


J-REITs: LONG Nippon Prologis 3283 and SHORT Nippon Building Fund 8951 on Valuation and Fundamentals

CapitaLand Investment /Sing / Equity Bottom-Up

CapitaLand Investment Limited (CLI) is a global real estate investment manager with the aim to scale its FUM and fee-related earnings through its full stack of investment management and operating capabilities. The Company's portfolio of integrated developments, retail, office, lodging and new economy assets are either owned/managed directly or through its fund management platform.

<ul>
<li>CapitaLand is a real estate investment manager with funds under management of c.S$100b and core markets being Singapore, China and India</li>
<li>They reported solid FY2023 results earlier this year.  Singapore and India are showing strong market outlook while China struggles.</li>
<li>Valuation is attractive with &gt;50% upside and we view there are multiple catalysts ahead</li>
</ul>


CapitaLand is a real estate investment manager with funds under management of c.S$100b and core markets being Singapore, China and India
They reported solid FY2023 results earlier this year.  Singapore and India are showing strong market outlook while China struggles.
Valuation is attractive with &gt;50% upside and we view there are multiple catalysts ahead


CapitaLand Investment (CLI): A Leading Global RE Investment Manager with Asia Presence, BUY

Japan Hotel Reit Investment / Equity Bottom-Up

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>USDJPY is breaking 154, almost 20-year high.  In general, weaker Yen is positive for investment in real estate as properties look cheaper from a foreign investor perspective</li>
<li>Yen weakness is also positive to tourism in Japan, as weak currency will drive tourist arrival and boost tourism</li>
<li>We like Japan Hotel REIT on the back of attractive valuation and weaker Yen.  We also like other Japan RE names like 8801 and 8802</li>
</ul>


USDJPY is breaking 154, almost 20-year high.  In general, weaker Yen is positive for investment in real estate as properties look cheaper from a foreign investor perspective
Yen weakness is also positive to tourism in Japan, as weak currency will drive tourist arrival and boost tourism
We like Japan Hotel REIT on the back of attractive valuation and weaker Yen.  We also like other Japan RE names like 8801 and 8802


Short Note: USDJPY Breaking 154: Positive for RE, Buy Japan Hotel REIT, Buy Japan RE

Mitsubishi Estate Company Ltd. invests in real estate properties in Japan.  The Company leases, manages, and develops commercial buildings in central Tokyo. Mitsubishi Estate also develops and sells residential properties and parking lots and manages recreational facilities including golf courses and tennis clubs.

<ul>
<li>In this insight, we explore Mitsubishi Estate, who is the second largest real estate company in terms of market cap</li>
<li>Mitsubishi Estate major business is in office (Tokyo CBD), residential/condo, as well as some retail and hotel</li>
<li>Japan stock market is upbeat and saw the largest inflow among Asia YTD.  8802 valuation is not demanding.</li>
</ul>


In this insight, we explore Mitsubishi Estate, who is the second largest real estate company in terms of market cap
Mitsubishi Estate major business is in office (Tokyo CBD), residential/condo, as well as some retail and hotel
Japan stock market is upbeat and saw the largest inflow among Asia YTD.  8802 valuation is not demanding.


8802 Mitsubishi Estate - Another Play on Japan RE and Office - Chase the Rally

KT Capital Group
Principal investments and advisory firm

USDJPY Breaking 34-Year High: Are We Seeing Another Asia Financial Crisis? What Will Come Next?

USDJPY breaking 34-year high. Other Asian currencies saw huge depreciation pressure. We look at underlying reason and it is concerning. We...

Jacob Cheng

J-REITs: LONG Nippon Prologis 3283 and SHORT Nippon Building Fund 8951 on Valuation and Fundamentals

We look at the J-REIT market, the interest rate impact, as well as industry fundamentals. We like logistics sector but more bearish on office. We...

Jacob Cheng

CapitaLand Investment (CLI): A Leading Global RE Investment Manager with Asia Presence, BUY

CLI is a leading RE investment manager with a solid presence in Asia. It generates fee income and invests in real estate across different asset...

Jacob Cheng

Short Note: USDJPY Breaking 154: Positive for RE, Buy Japan Hotel REIT, Buy Japan RE

USDJPY is breaking 154, almost a 20 year high. Weaker Yen is positive to Japan real estate as this drives foreign investment. It is also positive...

Jacob Cheng

8802 Mitsubishi Estate - Another Play on Japan RE and Office - Chase the Rally

Japan saw the biggest inflow among Asia and the equity market is strong. 8802 is another interesting play if investor wants to get exposure in...

Jacob Cheng