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.

Event-Driven

<ul>
<li>Under the revised scheme consideration, each <a href="https://www.smartkarma.com/entities/ara-logos-logistics-trust" target="_blank" data-smartkarma-citation="entities:937:1" rel="noopener">ARA LOGOS (ALLT SP)</a> unitholder will receive S$0.097 in cash and 1.7729 new <a href="https://www.smartkarma.com/entities/esr-reit" target="_blank" data-smartkarma-citation="entities:10934:1" rel="noopener">ESR-REIT (EREIT SP)</a> units at an issue price of S$0.4924.</li>
<li>The IFA considers the revised scheme consideration to be fair. We think that IFA’s valuation approach is broadly sound with some areas for improvement. </li>
<li>We think that the revised offer is reasonable. For a 28 April payment date, the gross and annualised spread is 2.9% and 18.2%, respectively. </li>
</ul>


Under the revised scheme consideration, each ARA LOGOS (ALLT SP) unitholder will receive S$0.097 in cash and 1.7729 new ESR-REIT (EREIT SP) units at an issue price of S$0.4924.
The IFA considers the revised scheme consideration to be fair. We think that IFA’s valuation approach is broadly sound with some areas for improvement. 
We think that the revised offer is reasonable. For a 28 April payment date, the gross and annualised spread is 2.9% and 18.2%, respectively. 


ARA LOGOS/ESR-REIT Scheme Meeting on 21 March, IFA Opinion

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>SCCM | <a href="https://www.smartkarma.com/entities/capitaland-integrated-commercial-trust" target="_blank" data-smartkarma-citation="entities:105" rel="noopener">Capitaland Integrated Commercial Trust (CICT SP)</a> – Mixed FY21; Office will be key to revival (BUY; TP SGD2.24/share)</li><li>SCCM | <a href="https://www.smartkarma.com/entities/aims-amp-capital-industrial" target="_blank" data-smartkarma-citation="entities:933" rel="noopener">AIMS APAC REIT (AAREIT SP)</a> – On a solid organic growth path (BUY; TP S$1.65/Unit)</li><li>SCCM | <a href="https://www.smartkarma.com/entities/esr-reit" target="_blank" data-smartkarma-citation="entities:10934" rel="noopener">ESR-REIT (EREIT SP)</a> – Steady performance with new acquisitions in sight (BUY; TP S$0.55/Unit)</li></ul>

SCCM | Capitaland Integrated Commercial Trust (CICT SP) – Mixed FY21; Office will be key to revival (BUY; TP SGD2.24/share)SCCM | AIMS APAC REIT (AAREIT SP) – On a solid organic growth path (BUY; TP S$1.65/Unit)SCCM | ESR-REIT (EREIT SP) – Steady performance with new acquisitions in sight (BUY; TP S$0.55/Unit)

ASEAN Builder's Scoop (4Feb22) - CICT Office Will Be Key to Revival

Equity Bottom-Up

<div><div><div><div><ul><li>Solid set of results-  3Q22 revenue grew by 14.5% YoY to S$36.8m and 3Q22 NPI jumped 14.8% YoY to S$27.1m.</li></ul><div><div><div><ul><li>Rising occupancy rate and +ve rent reversions-  6.1% of portfolio NLA had secured new leases and renewal leases with overall rent reversion at +0.2% in 3Q22 (+2.1% in 2Q22) and higher occupancy rate at 97.6% in 3Q22 (2Q22: 97.3%).</li></ul><div><div><div><div><ul><li>Lower share of fixed-rate debts- The share of fixed-rate debts has declined to 57% and ~90% of total debts will mature during FY24-27E.</li></ul></div></div></div></div></div></div></div></div></div></div></div>

Solid set of results-  3Q22 revenue grew by 14.5% YoY to S$36.8m and 3Q22 NPI jumped 14.8% YoY to S$27.1m.Rising occupancy rate and +ve rent reversions-  6.1% of portfolio NLA had secured new leases and renewal leases with overall rent reversion at +0.2% in 3Q22 (+2.1% in 2Q22) and higher occupancy rate at 97.6% in 3Q22 (2Q22: 97.3%).Lower share of fixed-rate debts- The share of fixed-rate debts has declined to 57% and ~90% of total debts will mature during FY24-27E.

AIMS APAC REIT (AAREIT SP) - On a Solid Organic Growth Path

Forensic Analyst

Jason Yap, CFA

Forensic Accounting

Sabana Industrial REIT / Forensic Accounting

<ul>
<li>In December 2020, Sabana's unitholders voted down a proposed merger with ESR-REIT</li>
<li>While Sabana's unitholders were ostensibly holding out for more favourable transaction terms, this was not forthcoming and transaction ultimately fell through</li>
<li>In this Insight, we look into Sabana a year on and discuss whether its unitholders have been left to rue the failed transaction and this was but a pyrrhic victory</li>
</ul>


In December 2020, Sabana's unitholders voted down a proposed merger with ESR-REIT
While Sabana's unitholders were ostensibly holding out for more favourable transaction terms, this was not forthcoming and transaction ultimately fell through
In this Insight, we look into Sabana a year on and discuss whether its unitholders have been left to rue the failed transaction and this was but a pyrrhic victory


One Year After Failed Merger, A Pyrrhic Victory for Sabana's Unitholders?

Equity Capital Markets

Digital Core REIT / Equity Capital Markets

<ul>
<li>
<a href="https://www.smartkarma.com/entities/digital-core-reit" target="_blank" data-smartkarma-citation="entities:35145:1" rel="noopener">Digital Core REIT (DCREIT SP)</a> is the exclusive S-REIT sponsored by <a href="https://www.smartkarma.com/entities/digital-realty-trust-inc" target="_blank" data-smartkarma-citation="entities:13149:1" rel="noopener">Digital Realty Trust (DLR US)</a>. It is seeking to raise US$600 million at US$0.88 per unit. </li>
<li>In <a href="https://www.smartkarma.com/insights/digital-core-reit-ipo-reaching-for-the-clouds" target="_blank" data-smartkarma-citation="insights:61737" rel="noopener">Digital Core REIT IPO: Reaching for the Clouds</a>, we outlined its attractive value proposition.    </li>
<li>Cornerstones such as Blackrock, Fidelity, JP Morgan AM account for 61% of the offer. Our valuation analysis suggests that the IPO price of $0.88 per unit is reasonable.</li>
</ul>



Digital Core REIT (DCREIT SP) is the exclusive S-REIT sponsored by Digital Realty Trust (DLR US). It is seeking to raise US$600 million at US$0.88 per unit. 
In Digital Core REIT IPO: Reaching for the Clouds, we outlined its attractive value proposition.    
Cornerstones such as Blackrock, Fidelity, JP Morgan AM account for 61% of the offer. Our valuation analysis suggests that the IPO price of $0.88 per unit is reasonable.


Digital Core REIT IPO: Valuation Insights

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)

ARA LOGOS/ESR-REIT Scheme Meeting on 21 March, IFA Opinion

ARA Logos and ESR-REIT merger scheme meeting is set for 21 March. The IFA considers the revised scheme consideration to be fair. For a 28 April...

Arun George

ASEAN Builder's Scoop (4Feb22) - CICT Office Will Be Key to Revival

AAREIT on a solid organic growth path; EREIT steady as she goes; MBS expansion set for 2026 completion; Orchard Towers S$1.6bn enbloc; SREIT sets...

SCCM Asia Research