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

Equity Bottom-Up

Equinix Inc is a global colocation company offering data center space and power to customers. The Company centers offer direct interconnections to network providers, cloud service providers, and other customers. Equinix has extensive operations in North America, Europe, Asia, Dubai, and Brazil.

<ul>
<li>Equinix is a leading global data center operator, operating 268 data centers across 34 countries</li>
<li>The sector is driven by strong structural demand.  We also think Equinix is highly committed to deliver values to shareholders.</li>
<li>Equinix has shown its operational excellence over a track record of 21 years, including top-line growth, dividend as well as AFFO growth.</li>
</ul>


Equinix is a leading global data center operator, operating 268 data centers across 34 countries
The sector is driven by strong structural demand.  We also think Equinix is highly committed to deliver values to shareholders.
Equinix has shown its operational excellence over a track record of 21 years, including top-line growth, dividend as well as AFFO growth.


Betting on the Future: Buy Equinix, the Leading Data Center Operator

Prologis, Inc. is an owner, operator and developer of industrial real estate, focused on global and regional markets across the Americas, Europe and Asia. The Company also leases modern distribution facilities to customers, including manufacturers, retailers, transportation companies, third-party logistics providers and other enterprises.

<ul>
<li>US market continues to see historical high; in the real estate space, we look at Prologis, the world’s largest logistics company</li>
<li>We like the sector on the back of strong structural demand drivers and depleting supply.  Logistics is the future and we think Prologis is the name to own</li>
<li>Broader real estate index is up 8.3% YTD, while PLD is down -15% YTD.  Valuation is attractive, we think PLD has room to catch up</li>
</ul>


US market continues to see historical high; in the real estate space, we look at Prologis, the world’s largest logistics company
We like the sector on the back of strong structural demand drivers and depleting supply.  Logistics is the future and we think Prologis is the name to own
Broader real estate index is up 8.3% YTD, while PLD is down -15% YTD.  Valuation is attractive, we think PLD has room to catch up


Never Too Late to Chase the Rally! Prologis, the World’s Leading Logistics Company

China Resources Land Limited, through its subsidiaries, develops and invests in properties.  The Company also provides corporate financing and electrical engineering services.

<ul>
<li>China NPC meeting ended, with new policy mostly focused on debt, causing market disappointment.  We think China has to boost local consumption, as trade may see downside in future</li>
<li>While we like COLI which is a pure residential developer, another leading developer, China Resources Land, which operates retail malls, offers investor additional exposure to consumption recovery in China</li>
<li>Equity placement is a potential risk, however we think there is upside for the stock as long as it trades below HKD35 per share</li>
</ul>


China NPC meeting ended, with new policy mostly focused on debt, causing market disappointment.  We think China has to boost local consumption, as trade may see downside in future
While we like COLI which is a pure residential developer, another leading developer, China Resources Land, which operates retail malls, offers investor additional exposure to consumption recovery in China
Equity placement is a potential risk, however we think there is upside for the stock as long as it trades below HKD35 per share


China Resources Land: A Play on China Retail and Consumption Recovery

Link REIT is a real estate investment trust in Hong Kong. The Trust owns and operates shopping centers, parking space facilities and real estate retail space.

<ul>
<li>Under a rate cut cycle, REITs historically outperform as risk free rates going down and share price would go up to maintain the same interest rate spread</li>
<li>Besides, the rate cut cycle would provide ample room for Link REIT to carry out more M&amp;As and expand its portfolio, to drive earnings and DPU growth</li>
<li>Link REIT currently offers 6.6% yield, and we think there is at least 15-20% upside from current valuation</li>
</ul>


Under a rate cut cycle, REITs historically outperform as risk free rates going down and share price would go up to maintain the same interest rate spread
Besides, the rate cut cycle would provide ample room for Link REIT to carry out more M&amp;As and expand its portfolio, to drive earnings and DPU growth
Link REIT currently offers 6.6% yield, and we think there is at least 15-20% upside from current valuation


Link REIT: Building a Diversified Asia Pac Portfolio and a Solid REIT Play in the Rate Cut Cycle

Sun Hung Kai Properties / Equity Bottom-Up

Sun Hung Kai Properties Limited develops and invests in properties. The Company operates and manages hotels, properties, car parking, and transportation infrastructures. Sun Hung Kai Properties serves customers in Hong Kong.

<ul>
<li>As the largest real estate company in Hong Kong, Sun Hung Kai Properties has well diversified businesses in Hong Kong and China</li>
<li>SHKP is viewed as a Hong Kong proxy because of its business origination.  Also, a trade on SHKP is a value play</li>
<li>Macro backdrop is supportive.  We think the potential for downside surprise is very limited, and valuation is undemanding</li>
</ul>


As the largest real estate company in Hong Kong, Sun Hung Kai Properties has well diversified businesses in Hong Kong and China
SHKP is viewed as a Hong Kong proxy because of its business origination.  Also, a trade on SHKP is a value play
Macro backdrop is supportive.  We think the potential for downside surprise is very limited, and valuation is undemanding


SHKP 16 HK: A Very Safe Play to Bet on Hong Kong Future