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

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

<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>Digital Core REIT offers an attractive value proposition consisting of a blue-chip tenant base, a staggered lease expiry profile, a growth pipeline and sizeable debt headroom.</li>
<li>Digital Core REIT offers exposure to the only 100% freehold data centre S-REIT.</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. 
Digital Core REIT offers an attractive value proposition consisting of a blue-chip tenant base, a staggered lease expiry profile, a growth pipeline and sizeable debt headroom.
Digital Core REIT offers exposure to the only 100% freehold data centre S-REIT.


Digital Core REIT IPO: Reaching for the Clouds

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.

<ul>
<li>Digital Core REIT (DCREIT), a data center REIT, aims to raise up to US$600m in its Singapore IPO.</li>
<li>The company is sponsored by Digital Realty, one of the largest REITs in the US, and over 60% of the deal is already spoken for by cornerstone investors.</li>
<li>In this note, we will talk about Peer Comp, Valuation and Other Deal Dynamics.</li>
</ul>


Digital Core REIT (DCREIT), a data center REIT, aims to raise up to US$600m in its Singapore IPO.
The company is sponsored by Digital Realty, one of the largest REITs in the US, and over 60% of the deal is already spoken for by cornerstone investors.
In this note, we will talk about Peer Comp, Valuation and Other Deal Dynamics.


Digital Core REIT IPO - Peer Comp, Valuation and Other Deal Dynamics

<ul>
<li>Digital Core REIT (DCREIT), a data center REIT, aims to raise up to US$600m in its Singapore IPO.</li>
<li>The company is sponsored by Digital Realty, one of the largest REITs in the US, and over 60% of the deal is already spoken for by cornerstone investors.</li>
<li>In this note, we will talk about the deal background</li>
</ul>


Digital Core REIT (DCREIT), a data center REIT, aims to raise up to US$600m in its Singapore IPO.
The company is sponsored by Digital Realty, one of the largest REITs in the US, and over 60% of the deal is already spoken for by cornerstone investors.
In this note, we will talk about the deal background


Digital Core REIT IPO - Hot Sector, Strong Backing but Has More than a Few Peculiar Points

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

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S-REITs have announced asset acquisitions exceeding S$9 billion in total purchase consideration over the past 10 months of 2021.

In the month of October, most acquisitions were in logistics and grocery-anchored retail assets and include several maiden acquisitions or forays into new market segments. 
Acquisitions in the month of October totalled S$765 million in purchase consideration and were by CapitaLand China Trust, Ascendas REIT, Mapletree Logistics Trust, and United Hampshire US REIT. 
CapitaLand China Trust (CLCT) made its first foray into China's logistics sector with the acquisition of 4 logistics properties in Shanghai, Kunshan, Wuhan and Chengdu worth 1.7 billion yuan (S$350.7 million).

This increases CLCT's exposure to new economy asset classes following its maiden purchase of a portfolio of 5 business park properties as part of its portfolio reconstitution strategy announced in 2020 to cover multi-assets used primarily for retail, office and industrial use.

The 4 properties have a committed portfolio occupancy of 96.3 per cent and a weighted average lease to expiry of 2.1 years as at Aug 31, 2021. Post-acquisition, CLCT's proportion of new economy assets by asset value will increase from 15.3 per cent to 21.4 per cent. 
CLCT has a 5-year acquisition growth roadmap and plans to achieve a balanced portfolio mix by 2026 comprising 40 per cent in commercial developments, 30 per cent in retail properties and 30 per cent in new economy assets such as business parks, logistics and data centres.

Ascendas Reit in October acquired 11 last mile logistics properties in Kansas City, in the United States for S$207.8 million, marking its first venture into the US logistics market.

Ascendas Reit notes that the Kansas City's logistics sector is well-supported by its central location within the US and its myriad businesses and sectors including transportation and distribution, e-commerce, manufacturing, animal health, technology and the financial industry.

The properties are 92.6 per cent occupied by 27 customers from diverse industries including third-party logistics, wholesale distribution, manufacturing and healthcare and no single customer makes up over 10 per cent of the portfolio's total rental income, lowering portfolio concentration risk.

Mapletree Logistics Trust (MLT) announced the proposed acquisition of the Yeoju Logistics Centre in South Korea for 135 billion won (S$153.8 million), expanding MLT's presence in the Seoul Metropolitan Area to a total of 19 assets.

The property is fully leased to one of South Korea's largest online fashion platforms and a domestic third-party logistics service provider.

It is located in northern Yeoju, which is a newly established logistics hub situated near two major expressways providing enhanced accessibility to and from Seoul.

The acquisition raises MLT's e-commerce revenue exposure in South Korea to 31 per cent, from its previous 24 per cent.

United Hampshire US Reit (UHReit) made its maiden acquisition since listing, acquiring two dominant grocery-anchored retail assets for US$78.25 million (approximately S$105.7 million) in Pennsylvania and Virginia, and extending UHReit's focus on the Eastern seaboard.

The Pennsylvania property is 94.1 per cent occupied while the Virginia property has a 99.1 per cent occupancy rate.

Both properties are anchored by tenants including Publix, one of the largest US grocery chains, and ShopRite, which is a leading supermarket brand in the region, among other home improvement and variety stores.

UHReit notes that both assets fit well with their investment criteria given the locations with limited competition, densely populated communities and backed by cycle agnostic tenants providing essential services. REIT Watch is a weekly column on The Business Times,<a href="https://www.businesstimes.com.sg/companies-markets/s-reits-make-maiden-forays-into-new-segments"> read </a>the original version.
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    SREIT asset


S-REITs have announced asset acquisitions exceeding S$9 billion in total purchase consideration over the past 10 months of 2021.

In the month of October, most acquisitions were in logistics and grocery-anchored retail assets and include several maiden acquisitions or forays into new market segments.  
Acquisitions in the month of October totalled S$765 million in purchase consideration and were by CapitaLand China Trust, Ascendas REIT, Mapletree Logistics Trust, and United Hampshire US REIT.  
CapitaLand China Trust (CLCT) made its first foray into China's logistics sector with the acquisition of 4 logistics properties in Shanghai, Kunshan, Wuhan and Chengdu worth 1.7 billion yuan (S$350.7 million).

This increases CLCT's exposure to new economy asset classes following its maiden purchase of a portfolio of 5 business park properties as part of its portfolio reconstitution strategy announced in 2020 to cover multi-assets used primarily for retail, office and industrial use.

The 4 properties have a committed portfolio occupancy of 96.3 per cent and a weighted average lease to expiry of 2.1 years as at Aug 31, 2021. Post-acquisition, CLCT's proportion of new economy assets by asset value will increase from 15.3 per cent to 21.4 per cent.  
CLCT has a 5-year acquisition growth roadmap and plans to achieve a balanced portfolio mix by 2026 comprising 40 per cent in commercial developments, 30 per cent in retail properties and 30 per cent in new economy assets such as business parks, logistics and data centres.

Ascendas Reit in October acquired 11 last mile logistics properties in Kansas City, in the United States for S$207.8 million, marking its first venture into the US logistics market.

Ascendas Reit notes that the Kansas City's logistics sector is well-supported by its central location within the US and its myriad businesses and sectors including transportation and distribution, e-commerce, manufacturing, animal health, technology and the financial industry.

The properties are 92.6 per cent occupied by 27 customers from diverse industries including third-party logistics, wholesale distribution, manufacturing and healthcare and no single customer makes up over 10 per cent of the portfolio's total rental income, lowering portfolio concentration risk.

Mapletree Logistics Trust (MLT) announced the proposed acquisition of the Yeoju Logistics Centre in South Korea for 135 billion won (S$153.8 million), expanding MLT's presence in the Seoul Metropolitan Area to a total of 19 assets.

The property is fully leased to one of South Korea's largest online fashion platforms and a domestic third-party logistics service provider.

It is located in northern Yeoju, which is a newly established logistics hub situated near two major expressways providing enhanced accessibility to and from Seoul.

The acquisition raises MLT's e-commerce revenue exposure in South Korea to 31 per cent, from its previous 24 per cent.

United Hampshire US Reit (UHReit) made its maiden acquisition since listing, acquiring two dominant grocery-anchored retail assets for US$78.25 million (approximately S$105.7 million) in Pennsylvania and Virginia, and extending UHReit's focus on the Eastern seaboard.

The Pennsylvania property is 94.1 per cent occupied while the Virginia property has a 99.1 per cent occupancy rate.

Both properties are anchored by tenants including Publix, one of the largest US grocery chains, and ShopRite, which is a leading supermarket brand in the region, among other home improvement and variety stores.

UHReit notes that both assets fit well with their investment criteria given the locations with limited competition, densely populated communities and backed by cycle agnostic tenants providing essential services.  REIT Watch is a weekly column on The Business Times, read the original version.



REIT Watch - S-Reits make maiden forays into new segments

Singapore

CapitaLand Ascendas REIT is an industrial real estate investment trust. The Trust invests in business and science park properties, integrated development, amenities, and retail (IDAR) properties, high-specifications industrial properties and data centers, light industrial and flatted factories, and logistics and distribution centers.

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CapitaLand Ascendas REIT (CLAR SP)

Digital Core REIT IPO: Valuation Insights

Digital Core REIT is seeking to raise US$600 million at US$0.88 per unit. Our valuation analysis suggests that the IPO price of $0.88 per unit is...

Arun George

Digital Core REIT IPO: Reaching for the Clouds

Digital Core REIT is seeking to raise US$600 million at US$0.88 per unit in an SGX IPO. It offers an attractive value proposition and is worth a look.

Arun George

Digital Core REIT IPO - Peer Comp, Valuation and Other Deal Dynamics

Digital Core REIT (DCREIT), a data center REIT, aims to raise up to US$600m in its Singapore IPO. In this note, we talk about peer comp, valuation...

Sumeet Singh

Digital Core REIT IPO - Hot Sector, Strong Backing but Has More than a Few Peculiar Points

Digital Core REIT (DCREIT), a data center REIT, aims to raise up to US$600m in its Singapore IPO. In this note, we will talk about the positive and...

Sumeet Singh

REIT Watch - S-Reits make maiden forays into new segments

S-REITs have announced asset acquisitions exceeding S$9 billion in total purchase consideration over the past 10 months of...

Singapore Exchange Ltd (SGX)

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