Research from SooChow CSSD Capital Markets (Asia), SCCM Asia Research

SCCM Asia Research

Research from SooChow CSSD Capital Markets (Asia)

Headquartered in Singapore, SooChow CSSD Capital Markets (Asia) is an investment bank focusing on emerging growth companies across Asia, providing a full suite of investment banking services, including corporate finance, mergers and acquisitions advisory, equity capital markets, institutional equities sales and trading and equities research.

SooChow CSSD Capital Markets (Asia)

Thematic (Sector/Industry)

<ul><li><a href="https://www.smartkarma.com/entities/mapletree-north-asia-commercial-trust" target="_blank" data-smartkarma-citation="entities:5127" rel="noopener">Mapletree North Asia Commercial Trust (MAGIC SP)</a> settles with insurers for HK$334m over damage to Festival Walk mall</li><li>New bonus GFA incentive scheme for developments that meet standards on digitalization and productivity</li><li><a href="https://www.smartkarma.com/entities/frasers-property-ltd" target="_blank" data-smartkarma-citation="entities:1670" rel="noopener">Frasers Property Ltd (FPL SP)</a> scraps plan to acquire Vietnam property developer</li></ul>

Mapletree North Asia Commercial Trust (MAGIC SP) settles with insurers for HK$334m over damage to Festival Walk mallNew bonus GFA incentive scheme for developments that meet standards on digitalization and productivityFrasers Property Ltd (FPL SP) scraps plan to acquire Vietnam property developer

ASEAN Builder's Scoop (25Nov21) - MAGIC Settles FW's Insurance Claims

IPOs and Catalysts/Events, Global Equity Research Ltd

Arun George

IPOs and Catalysts/Events

Uncompromised, Independent, Conflict-Free Research

Global Equity Research Ltd

Global Equity Research was started in 2017 by a group of experienced research professionals. It was founded on a passionate belief in the importance and the need for uncompromised, independent, conflict-free research. We aim to provide differentiated and actionable primary and bottom up fundamental research.

Equity Capital Markets

Daiwa House Logistics Trust / Equity Capital Markets

<ul>
<li>
<a href="https://www.smartkarma.com/entities/daiwa-house-logistics-trust" target="_blank" data-smartkarma-citation="entities:35020:1" rel="noopener">Daiwa House Logistics Trust (DHLT SP)</a> has launched an SGX IPO to raise gross proceeds of S$464 million ($343 million) at an IPO price of S$0.80 per unit. </li>
<li>In <a href="https://www.smartkarma.com/insights/daiwa-house-logistics-trust-ipo-the-flow-of-things" target="_blank" data-smartkarma-citation="insights:60978" rel="noopener">Daiwa House Logistics Trust IPO: The Flow of Things</a>, we outlined its attractive value proposition.  </li>
<li>Our valuation analysis suggests that the IPO price of S$0.80 per unit is reasonable.</li>
</ul>



Daiwa House Logistics Trust (DHLT SP) has launched an SGX IPO to raise gross proceeds of S$464 million ($343 million) at an IPO price of S$0.80 per unit. 
In Daiwa House Logistics Trust IPO: The Flow of Things, we outlined its attractive value proposition.  
Our valuation analysis suggests that the IPO price of S$0.80 per unit is reasonable.


Daiwa House Logistics Trust IPO: Valuation Insights

SGX Market Strategist, Equity & Fixed Income, Singapore Exchange Ltd (SGX)

Geoff Howie

SGX Market Strategist, Equity & Fixed Income

Asia’s leading multi-asset exchange

Singapore Exchange Ltd (SGX)

Singapore Exchange is Asia’s leading and trusted market infrastructure, facilitating the exchange of capital and ideas to create value for people, businesses and economies. As a multi-asset exchange operating equity, fixed income and derivatives markets to the highest regulatory standards, SGX is a vertically integrated business that provides listing, trading, clearing, settlement, depository and data services.

With about 40% of listed companies and over 80% of listed bonds originating outside of Singapore as well as established linkages across the region and in Europe, SGX is Asia’s most international and connected exchange. Offering a full suite of derivatives products across Asian equity indices, commodities and currencies, SGX is the world’s most liquid international market for the benchmark equity indices of China, India, Japan and ASEAN.

As Asia’s pioneering central counterparty, SGX is globally recognised for its risk management and clearing capabilities, and was one of the first globally to adopt the Principles for Financial Market Infrastructure.

Headquartered in AAA-rated Singapore, SGX has over 800 employees including offices in Beijing, Chicago, Hong Kong, London, New York, Mumbai, San Francisco, Shanghai and Tokyo.

Equity Bottom-Up

<figure>
      <img src='https://api2.sgx.com/sites/default/files/2021-11/Capture_3.PNG' alt='Greener REIT' />
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    <div class='content-caption'>Greener REIT</div>
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<p>According to the UN Environmental Programme, the real estate sector has one of the largest carbon footprints, contributing to 30 per cent of global annual greenhouse gas (GHG) emissions and consumes around 40 per cent of the world's energy.</p>

<p>This explains the increasing focus on climate change issues and responsible investment practices.</p>

<p>SGX and UOB Asset Management have jointly launched the iEdge-UOB Apac Yield Focus Green Reit Index, an index which tracks the performance of 50 higher-yielding Reits in Asia-Pacific (Apac) with positive environmental attributes based on the GRESB assessment framework.<br><br>
GRESB is the global leader for ESG research of real assets, covering more than 1,500 property companies, Reits, funds and developers with US$5.7 trillion in assets under management.<br><br>
Out of the 50 constituents, nine are S-REITs &amp; Property Trusts: CapitaLand Integrated Commercial Trust, Mapletree Logistics Trust, Mapletree Industrial Trust, Mapletree Commercial Trust, Frasers Logistics &amp; Commercial Trust, Suntec REIT, Keppel REIT, Mapletree North Asia Commercial Trust, and Ascendas India Trust.<br><br>
The iEdge-UOB Apac Yield Focus Green Reit Index is the first index globally to go beyond using the overall GRESB score and focus on four key environmental indicators to determine the environmental attributes - energy consumption, water consumption, GHG emissions, and green building certifications.<br><br>
The index is expected to be fully investable and tradable, as Apac Reits are included into the index based on minimum size of US$1 billion in free-float market capitalisation, liquidity requirements of at least US$400,000 in median daily average traded value, dividend yield-ranking within market cap quartiles, and a minimum GRESB public disclosure score among others.</p>

<p>After which a green tilt is applied using the GRESB Real Estate Assessment environmental scores.</p>

<p>Reits that have more favourable environmental attributes will be rewarded with a higher weighting factor, compared to Reits that have relative lower environmental scores.</p>

<p>By applying the green portfolio tilt, the iEdge-UOB Apac Yield Focus Green Reit Index constituents emit 7 per cent less GHG, consume 12 per cent less water and 9 per cent less energy than the non-green market-cap weighted version of the index.</p>

<p>Green building certification by floor area is also 13 per cent for certifications obtained at the time of design, construction or renovation, and 10 per cent for operational green building certifications.</p>

<p>All constituent weights are capped at 7 per cent and overall country exposure capped at 40 per cent.</p>

<p>Japan makes up 40 per cent of the index, while Australia, Singapore and Hong Kong are at 36 per cent, 16 per cent and 8 per cent respectively.</p>

<p>The index has a trailing 12-month dividend yield of 4.25 per cent.</p>

<p>The UOB Apac Green Reit ETF, which has filed a prospectus with an expected listing on Nov 23, will track the iEdge-UOB Apac Yield Focus Green Reit Index.</p>

<p>The ETF has a target dividend distribution policy of up to 4 per cent of net asset value per annum on a quarterly basis. <br><br><strong><em>REIT Watch is a weekly column on The Business Times,<a href="https://www.businesstimes.com.sg/companies-markets/retail-and-hospitality-sector-s-reits-outperform-in-october"> </a><a href="https://www.businesstimes.com.sg/companies-markets/nine-s-reits-in-yield-focus-index-based-on-positive-environmental-attributes">read</a><a href="https://www.businesstimes.com.sg/companies-markets/retail-and-hospitality-sector-s-reits-outperform-in-october"> </a>the original version.</em></strong></p>
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    Greener REIT


According to the UN Environmental Programme, the real estate sector has one of the largest carbon footprints, contributing to 30 per cent of global annual greenhouse gas (GHG) emissions and consumes around 40 per cent of the world's energy.

This explains the increasing focus on climate change issues and responsible investment practices.

SGX and UOB Asset Management have jointly launched the iEdge-UOB Apac Yield Focus Green Reit Index, an index which tracks the performance of 50 higher-yielding Reits in Asia-Pacific (Apac) with positive environmental attributes based on the GRESB assessment framework.  
GRESB is the global leader for ESG research of real assets, covering more than 1,500 property companies, Reits, funds and developers with US$5.7 trillion in assets under management.  
Out of the 50 constituents, nine are S-REITs &amp; Property Trusts: CapitaLand Integrated Commercial Trust, Mapletree Logistics Trust, Mapletree Industrial Trust, Mapletree Commercial Trust, Frasers Logistics &amp; Commercial Trust, Suntec REIT, Keppel REIT, Mapletree North Asia Commercial Trust, and Ascendas India Trust.  
The iEdge-UOB Apac Yield Focus Green Reit Index is the first index globally to go beyond using the overall GRESB score and focus on four key environmental indicators to determine the environmental attributes - energy consumption, water consumption, GHG emissions, and green building certifications.  
The index is expected to be fully investable and tradable, as Apac Reits are included into the index based on minimum size of US$1 billion in free-float market capitalisation, liquidity requirements of at least US$400,000 in median daily average traded value, dividend yield-ranking within market cap quartiles, and a minimum GRESB public disclosure score among others.

After which a green tilt is applied using the GRESB Real Estate Assessment environmental scores.

Reits that have more favourable environmental attributes will be rewarded with a higher weighting factor, compared to Reits that have relative lower environmental scores.

By applying the green portfolio tilt, the iEdge-UOB Apac Yield Focus Green Reit Index constituents emit 7 per cent less GHG, consume 12 per cent less water and 9 per cent less energy than the non-green market-cap weighted version of the index.

Green building certification by floor area is also 13 per cent for certifications obtained at the time of design, construction or renovation, and 10 per cent for operational green building certifications.

All constituent weights are capped at 7 per cent and overall country exposure capped at 40 per cent.

Japan makes up 40 per cent of the index, while Australia, Singapore and Hong Kong are at 36 per cent, 16 per cent and 8 per cent respectively.

The index has a trailing 12-month dividend yield of 4.25 per cent.

The UOB Apac Green Reit ETF, which has filed a prospectus with an expected listing on Nov 23, will track the iEdge-UOB Apac Yield Focus Green Reit Index.

The ETF has a target dividend distribution policy of up to 4 per cent of net asset value per annum on a quarterly basis.   REIT Watch is a weekly column on The Business Times, read the original version.



REIT Watch - Nine S-Reits in Yield Focus index based on positive environmental attributes

<h2>Singapore</h2><h3>SREITs results in a glance (see detailed spreadsheet and calendar attached)</h3><figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/238/456/original/image_76502934321635528996334.png?1635528999" class="editor-image img-responsive" data-smartkarma-image-id="238456"></figure><h3><a href="https://www.smartkarma.com/entities/starhill-global-reit" target="_blank" data-smartkarma-citation="entities:10791" rel="noopener">Starhill Global REIT (SGREIT SP)</a> 1Q22 Business Updates; Little help from VTL leading up to festive season</h3><ul><li>1Q22 revenue and NPI rose by +4.0% and +15.1% YoY, respectively, to S$44.8m (22.8% of BB est.) and S$34.3m (25.3% of BB est.), respectively, mainly due to lower rental assistance and lower operating expenses, which was partially offset by lower contributions from Wisma Atria (Revenue: -8.9%, NPI: -8% YoY). No DI nor DPU was disclosed</li></ul><div style="display: none;"><figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/238/455/original/blobid0.png?1635528963" class="editor-image img-responsive" data-smartkarma-image-id="238455"></figure></div>

SingaporeSREITs results in a glance (see detailed spreadsheet and calendar attached)Starhill Global REIT (SGREIT SP) 1Q22 Business Updates; Little help from VTL leading up to festive season1Q22 revenue and NPI rose by +4.0% and +15.1% YoY, respectively, to S$44.8m (22.8% of BB est.) and S$34.3m (25.3% of BB est.), respectively, mainly due to lower rental assistance and lower operating expenses, which was partially offset by lower contributions from Wisma Atria (Revenue: -8.9%, NPI: -8% YoY). No DI nor DPU was disclosed

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.

<div>
<p>Keppel DC REIT (KDCREIT SP) plans to raise up to US$151m (S$204m) via a mix of a private placement. The company will use the proceeds to fund the recent acquisition of its first China data centre and to pay down debt. </p>
<p>In this note, we will talk about the deal dynamics and run the deal through our ECM framework.</p>
<p>We have covered the listing and previous placements for KDC in our earlier notes:</p>
</div><div><ul style="list-style-type: disc;">
<li>Sep 2019 placement for US$273m: <a href="https://www.smartkarma.com/insights/keppel-dc-reit-placement-just-in-time-for-the-index-inclusion" target="_blank" rel="noopener">Keppel DC REIT Placement - Just in Time for the Index Inclusion</a>
</li>
<li>May 2018 placement for US$228m: <a href="https://www.smartkarma.com/insights/keppel-dc-reit-placement-accretive-acquisition-and-probably-expected-dilution" target="_blank" rel="noopener">Keppel DC REIT Placement - Accretive Acquisition and Probably Expected Dilution</a>
</li>
<li>IPO: <a href="https://www.smartkarma.com/insights/first-of-its-kind-exposure-to-rapidly-growing-data-centers" target="_blank" rel="noopener">First of its kind exposure to rapidly growing data centers</a>
</li>
</ul></div>


Keppel DC REIT (KDCREIT SP) plans to raise up to US$151m (S$204m) via a mix of a private placement. The company will use the proceeds to fund the recent acquisition of its first China data centre and to pay down debt. 
In this note, we will talk about the deal dynamics and run the deal through our ECM framework.
We have covered the listing and previous placements for KDC in our earlier notes:

Sep 2019 placement for US$273m: Keppel DC REIT Placement - Just in Time for the Index Inclusion

May 2018 placement for US$228m: Keppel DC REIT Placement - Accretive Acquisition and Probably Expected Dilution

IPO: First of its kind exposure to rapidly growing data centers



Keppel DC REIT Placement - Most of the past Deals Have Done Well, Though This Won’t Be Accretive

Singapore

Mapletree North Asia Commercial Trust operates as a real estate investment trust. The Company manages and invests in commercial properties, including logistics, industrial spaces, and office buildings. Mapletree North Asia Commercial Trust serves customers in Asia.

Mapletree North Asia Commercial Trust (MAGIC SP)

Price Gauge
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Mapletree North Asia Commercial Trust (MAGIC SP)

ASEAN Builder's Scoop (25Nov21) - MAGIC Settles FW's Insurance Claims

MAGIC settles FW's insurance claims; New bonus GFA incentive scheme; FPL cancels VN acquisition; SASSR new CFO; SPSB likely exceeds 2021 sales...

SCCM Asia Research

Daiwa House Logistics Trust IPO: Valuation Insights

Our valuation analysis suggests that the IPO price of S$0.80 per unit is reasonable. Bookbuilding will end on 18 Nov, with an expected listing date...

Arun George

REIT Watch - Nine S-Reits in Yield Focus index based on positive environmental attributes

According to the UN Environmental Programme, the real estate sector has one of the largest carbon footprints, contributing to...

Singapore Exchange Ltd (SGX)

ASEAN Builder's Scoop (29Oct21)

SGREIT little help from VTL; CDREIT QoQ improvements across the board; FEHT stabilizing QoQ hotel metrics; FHT signals worst is over; MAGIC weak...

SCCM Asia Research

Keppel DC REIT Placement - Most of the past Deals Have Done Well, Though This Won’t Be Accretive

Keppel DC REIT (KDCREIT SP) plans to raise up to US$151m (S$204m) via a mix of a private placement. The company will use the proceeds to fund the...

Sumeet Singh

Price Gauge

52-week Range

Market Cap (USDm)

P/E

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