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

CapitaLand Ascendas REIT / Equity Capital Markets

<p>On Friday, <a href="https://www.smartkarma.com/entities/ascendas-real-estate-investment-trust" target="_blank" data-smartkarma-citation="entities:39:1" rel="noopener">Ascendas Real Estate Investment Trust (AREIT SP)</a> unveiled plans to raise around S$1,310 million ($964 million) through a rights issue. The rights issue consists of 498 million rights units (16 rights units for every 100 existing units) with a rights price of S$2.63. </p><div class="content-highlight"><p>The proceeds from the rights issue will be used to partially fund the proposed acquisition of properties in the US (S$1,309 million for 28 properties) and Singapore (S$397 million for two properties) from its sponsor, <a href="https://www.smartkarma.com/entities/capitaland-ltd" target="_blank" data-smartkarma-citation="entities:55:1" rel="noopener">Capitaland Ltd (CAPL SP)</a>. Overall, we believe that the proposed acquisitions are sensible, and we would recommend shareholders to take up their rights entitlements.</p></div>

On Friday, Ascendas Real Estate Investment Trust (AREIT SP) unveiled plans to raise around S$1,310 million ($964 million) through a rights issue. The rights issue consists of 498 million rights units (16 rights units for every 100 existing units) with a rights price of S$2.63. The proceeds from the rights issue will be used to partially fund the proposed acquisition of properties in the US (S$1,309 million for 28 properties) and Singapore (S$397 million for two properties) from its sponsor, Capitaland Ltd (CAPL SP). Overall, we believe that the proposed acquisitions are sensible, and we would recommend shareholders to take up their rights entitlements.

Ascendas REIT Rights Issue: Subscribe for Your Entitlements

Mapletree Logistics Trust / Equity Capital Markets

<p>On Tuesday, <a href="https://www.smartkarma.com/entities/mapletree-logistics-trust" target="_blank" data-smartkarma-citation="entities:16035:1" rel="noopener">Mapletree Logistics Trust (MLT SP)</a> unveiled plans to raise around S$250 million through a private placement of new units. The private placement price range is set at S$1.579-1.617 per new unit. The proceeds from the placement will be used to partially fund the proposed acquisition of seven assets in Malaysia (S$269.9 million for one asset), Vietnam (S$53.3 million for two assets) and China (S$60.7 million for four assets). </p><div class="content-highlight"><p>Overall, we believe that the proposed acquisitions are sensible, but MLT’s valuation at the placement price range is not compelling.</p></div>

On Tuesday, Mapletree Logistics Trust (MLT SP) unveiled plans to raise around S$250 million through a private placement of new units. The private placement price range is set at S$1.579-1.617 per new unit. The proceeds from the placement will be used to partially fund the proposed acquisition of seven assets in Malaysia (S$269.9 million for one asset), Vietnam (S$53.3 million for two assets) and China (S$60.7 million for four assets). Overall, we believe that the proposed acquisitions are sensible, but MLT’s valuation at the placement price range is not compelling.

Mapletree Logistics Trust Placement: Sensible Acquisitions, Full Placement Price

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

CapitaLand Ascendas REIT / Equity Bottom-Up

<p>SGX is one of Asia’s regional hub for Real Estate Investment Trusts (REITs) &amp; Property Trusts. Based on the FTSE ST REIT Index, the dividend yield for Singapore REITs have been 4.2 – 6.8% over a period of 5 years (Source: Bloomberg, 2014-2018). Over 80% of Singapore REITs &amp; Property Trusts own offshore assets across Asia Pacific, US &amp; Europe.&nbsp;</p>
<p>As of end Sep 2019, SGX lists 44 REITs &amp; Property Trusts with a combined market capitalisation of over S$100 billion, representing c.12% of Singapore’s overall market</p>
<p>SGX’s REITs &amp; Property Trusts offer wide diversity across property sub-segments<br>REIT Indices:</p>
<ul>
<li>FTSE ST REIT Index: 37 out of the 44 trusts represented</li>
<li>iEdge S-REIT Index: 36 out of the 44 trusts represented</li>
</ul>
<h2>Key Statistics At a Glance</h2>
<ul>
<li>Average dividend yield of 6.2%</li>
<li>Average 3-year annualised total return of 10.8%</li>
<li>Average gearing ratio of 34.5%</li>
<li>10 year market cap CAGR of 22%</li>
</ul>

SGX is one of Asia’s regional hub for Real Estate Investment Trusts (REITs) &amp; Property Trusts. Based on the FTSE ST REIT Index, the dividend yield for Singapore REITs have been 4.2 – 6.8% over a period of 5 years (Source: Bloomberg, 2014-2018). Over 80% of Singapore REITs &amp; Property Trusts own offshore assets across Asia Pacific, US &amp; Europe.&nbsp;
As of end Sep 2019, SGX lists 44 REITs &amp; Property Trusts with a combined market capitalisation of over S$100 billion, representing c.12% of Singapore’s overall market
SGX’s REITs &amp; Property Trusts offer wide diversity across property sub-segments REIT Indices:

FTSE ST REIT Index: 37 out of the 44 trusts represented
iEdge S-REIT Index: 36 out of the 44 trusts represented

Key Statistics At a Glance

Average dividend yield of 6.2%
Average 3-year annualised total return of 10.8%
Average gearing ratio of 34.5%
10 year market cap CAGR of 22%


Chartbook: SREITs & Property Trusts -  October 2019

Mapletree Industrial Trust / Equity Capital Markets

<p>On Tuesday, <a href="https://www.smartkarma.com/entities/mapletree-industrial-trust" target="_blank" data-smartkarma-citation="entities:40:1" rel="noopener">Mapletree Industrial Trust (MINT SP)</a> unveiled plans to raise around S$350.0 million through a private placement of new units. The private placement price range is set at S$2.211-2.265 per new unit. </p><div class="content-highlight"><p>The proceeds from the placement will be used to partially fund the proposed acquisitions through a 50:50 JV with Mapletree Investments. Overall, we believe that proposed acquisitions are attractive and bolster MINT’s credentials as an emerging datacentre play. While the valuation is full compared to Industrial S-REITs, we think that it looks attractive for investors seeking datacentre exposure.</p></div>

On Tuesday, Mapletree Industrial Trust (MINT SP) unveiled plans to raise around S$350.0 million through a private placement of new units. The private placement price range is set at S$2.211-2.265 per new unit. The proceeds from the placement will be used to partially fund the proposed acquisitions through a 50:50 JV with Mapletree Investments. Overall, we believe that proposed acquisitions are attractive and bolster MINT’s credentials as an emerging datacentre play. While the valuation is full compared to Industrial S-REITs, we think that it looks attractive for investors seeking datacentre exposure.

Mapletree Industrial Trust Placement: Reasonable for an Emerging Datacentre Play

<p>On Monday, <a href="https://www.smartkarma.com/entities/keppel-dc-reit" target="_blank" data-smartkarma-citation="entities:85:1" rel="noopener">Keppel DC REIT (KDCREIT SP)</a> unveiled plans to raise around S$473.8 million through a private placement and a preferential placing of new units. The private placement price range is set at S$1.703-1.744 per unit, and the preferential offering is set at a price range of S$1.67-1.71 per new unit. </p><div class="content-highlight"><p>The proceeds from the placement will be used to partially fund the proposed acquisitions of 99.0% interest in Keppel DC Singapore 4 and 100.0% interest in 1-Net North Data Centre. Overall, we believe that proposed acquisitions are attractive but the valuation is full, and we think that investors will be better served looking for a lower entry point.</p></div>

On Monday, Keppel DC REIT (KDCREIT SP) unveiled plans to raise around S$473.8 million through a private placement and a preferential placing of new units. The private placement price range is set at S$1.703-1.744 per unit, and the preferential offering is set at a price range of S$1.67-1.71 per new unit. The proceeds from the placement will be used to partially fund the proposed acquisitions of 99.0% interest in Keppel DC Singapore 4 and 100.0% interest in 1-Net North Data Centre. Overall, we believe that proposed acquisitions are attractive but the valuation is full, and we think that investors will be better served looking for a lower entry point.

Singapore

AIMS APAC REIT is a real estate investment trust. The Trust's principal investment objective is owning and investing in a diversified portfolio of income-producing industrial real estate assets throughout Asia Pacific, including warehousing and logistics, manufacturing, business parks and hi-tech spaces.

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AIMS APAC REIT (AAREIT SP)

Mapletree Logistics Trust Placement: Sensible Acquisitions, Full Placement Price

On Tuesday, Mapletree Logistics Trust (MLT SP) unveiled plans to raise around S$250 million through a private placement of new units. The private...

Arun George

Chartbook: SREITs & Property Trusts - October 2019

SGX is one of Asia’s regional hub for Real Estate Investment Trusts (REITs) & Property Trusts. Based on the FTSE ST REIT Index, the dividend...

Singapore Exchange Ltd (SGX)

Mapletree Industrial Trust Placement: Reasonable for an Emerging Datacentre Play

On Tuesday, Mapletree Industrial Trust (MINT SP) unveiled plans to raise around S$350.0 million through a private placement of new units. The...

Arun George

Keppel DC REIT Placement: A Full Price

On Monday, Keppel DC REIT (KDCREIT SP) unveiled plans to raise around S$473.8 million through a private placement and a preferential placing of new...

Arun George

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Ascendas REIT Rights Issue: Subscribe for Your Entitlements

On Friday, Ascendas Real Estate Investment Trust (AREIT SP) unveiled plans to raise around S$1,310 million ($964 million) through a rights issue....

Arun George

Mapletree Logistics Trust Placement: Sensible Acquisitions, Full Placement Price

On Tuesday, Mapletree Logistics Trust (MLT SP) unveiled plans to raise around S$250 million through a private placement of new units. The private...

Arun George

Chartbook: SREITs & Property Trusts - October 2019

SGX is one of Asia’s regional hub for Real Estate Investment Trusts (REITs) & Property Trusts. Based on the FTSE ST REIT Index, the dividend...

Singapore Exchange Ltd (SGX)

Mapletree Industrial Trust Placement: Reasonable for an Emerging Datacentre Play

On Tuesday, Mapletree Industrial Trust (MINT SP) unveiled plans to raise around S$350.0 million through a private placement of new units. The...

Arun George

Keppel DC REIT Placement: A Full Price

On Monday, Keppel DC REIT (KDCREIT SP) unveiled plans to raise around S$473.8 million through a private placement and a preferential placing of new...

Arun George