Pan-Asia Index Flows & Special Situations, Quiddity Advisors

Janaghan Jeyakumar, CFA

Pan-Asia Index Flows & Special Situations

Quiddity Advisors

Pan-Asia Catalysts/Events

Event-Driven

Japan Real Estate Investment / Event-Driven

<ul>
<li>Today after market close, one of Japan's largest office JREITs <a href="https://www.smartkarma.com/entities/japan-real-estate-investment" target="_blank" data-smartkarma-citation="entities:16867:1" rel="noopener">Japan Real Estate Investment (8952 JP)</a> announced a US$150mn follow-on equity offering to fund their recent acquisition of two properties.</li>
<li>The primary offer quantity will be 35,200 units and there is an over-allotment quantity of 2,464 units.</li>
<li>In this insight, we take a closer look at the details of this offering and the potential of this offering to trigger strong secondary market performance in the following weeks.</li>
</ul>


Today after market close, one of Japan's largest office JREITs Japan Real Estate Investment (8952 JP) announced a US$150mn follow-on equity offering to fund their recent acquisition of two properties.
The primary offer quantity will be 35,200 units and there is an over-allotment quantity of 2,464 units.
In this insight, we take a closer look at the details of this offering and the potential of this offering to trigger strong secondary market performance in the following weeks.


Japan Real Estate Investment (8952 JP) : Offering Could Be a Catalyst for Outperformance Vs Peers

Pan-Asia Catalysts/Events, Quiddity Advisors

Travis Lundy

<ul>
<li>
<a href="https://www.smartkarma.com/entities/japan-excellent-inc" target="_blank" data-smartkarma-citation="entities:12745:1" rel="noopener">Japan Excellent (8987 JP)</a> has been the worst-performing Office J-REIT amongst the existing crop since the end of 2019.</li>
<li>Today, we got news of a possible flow event - a buyer.</li>
<li>There is room here for Japan Excellent to outperform over the next several months.</li>
</ul>



Japan Excellent (8987 JP) has been the worst-performing Office J-REIT amongst the existing crop since the end of 2019.
Today, we got news of a possible flow event - a buyer.
There is room here for Japan Excellent to outperform over the next several months.


Japan Excellent REIT (8987) - Possible Sustained Flow Event

<ul>
<li>
<a href="https://www.smartkarma.com/entities/daiwa-office-investment-corp" target="_blank" data-smartkarma-citation="entities:13989:1" rel="noopener">Daiwa Office Investment (8976 JP)</a> announced on Thursday an extraordinary but minor income amount from a legal settlement, and a buyback.</li>
<li>This buyback resembles those conducted from February to May 2018 and 2021. </li>
<li>A look at the pattern of buyback execution vs parameters and of Daiwa Office performance vs the sub-sector within prior buybacks is worthwhile.</li>
</ul>



Daiwa Office Investment (8976 JP) announced on Thursday an extraordinary but minor income amount from a legal settlement, and a buyback.
This buyback resembles those conducted from February to May 2018 and 2021. 
A look at the pattern of buyback execution vs parameters and of Daiwa Office performance vs the sub-sector within prior buybacks is worthwhile.


Daiwa Office REIT (8976) Buyback - It Looks Better Than It Probably Is

APAC IPOs & Placements, Aequitas Research

Clarence Chu

APAC 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.

Equity Capital Markets

Nippon Building Fund / Equity Capital Markets

<ul>
<li>
<a href="https://www.smartkarma.com/entities/nippon-building-fund-inc" target="_blank" data-smartkarma-citation="entities:1900:1" rel="noopener">Nippon Building Fund (8951 JP)</a> is looking to raise around US$260m in its Primary Offering, to fund the acquisition of two properties.</li>
<li>Target acquisitions are expected to be accretive however, the deal comes amidst weaker sector sentiment and analysts have grown more pessimistic on the REIT’s unit price. </li>
<li>In this note, we will talk about the deal dynamics and run the deal through our ECM framework.</li>
</ul>



Nippon Building Fund (8951 JP) is looking to raise around US$260m in its Primary Offering, to fund the acquisition of two properties.
Target acquisitions are expected to be accretive however, the deal comes amidst weaker sector sentiment and analysts have grown more pessimistic on the REIT’s unit price. 
In this note, we will talk about the deal dynamics and run the deal through our ECM framework.


Nippon Building Fund Placement - Weak Sentiment, However, Past Deals Have Performed Well

<ul>
<li>
<a href="https://www.smartkarma.com/entities/nippon-building-fund-inc" target="_blank" data-smartkarma-citation="entities:1900:1" rel="noopener">Nippon Building Fund (8951 JP)</a> announced a smallish primary offering to assist in funding a portion of its Asset Replacement Campaign involving sales and purchases and an uplift in DPU.</li>
<li>That is an occasion to look at how much of float is held by passive trackers. </li>
<li>A test was done on the top 10 J-REITs on a holder-by-holder basis to see what one could expect at a minimum. The result may surprise some.</li>
</ul>



Nippon Building Fund (8951 JP) announced a smallish primary offering to assist in funding a portion of its Asset Replacement Campaign involving sales and purchases and an uplift in DPU.
That is an occasion to look at how much of float is held by passive trackers. 
A test was done on the top 10 J-REITs on a holder-by-holder basis to see what one could expect at a minimum. The result may surprise some.


Nippon Building Fund (8951) - Calculating Passive Tracking of J-REITs and Index Events Around Offers

Japan

Daiwa Office Investment Corporation is a real estate investment trust (REIT) which invests in securitized real estate products.

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Daiwa Office Investment (8976 JP)

Japan Real Estate Investment (8952 JP) : Offering Could Be a Catalyst for Outperformance Vs Peers

Large-cap Office JREIT JRE has launched a US$150mn follow-on equity offering after nearly five years. This could act as a catalyst for...

Janaghan Jeyakumar, CFA

Japan Excellent REIT (8987) - Possible Sustained Flow Event

Japan Excellent is a mid-range (but small) office J-REIT. Slightly under-levered. Slightly high dividend. The sponsor wants greater investor...

Travis Lundy

Daiwa Office REIT (8976) Buyback - It Looks Better Than It Probably Is

Daiwa Office (8976) announced a buyback on Thursday. The REIT units outperformed the Office REIT sub-sector Friday by 2%. Historical patterns of...

Travis Lundy

Nippon Building Fund Placement - Weak Sentiment, However, Past Deals Have Performed Well

Nippon Building Fund (8951 JP) is looking to raise around US$260m in its Primary Offering, to fund the acquisition of two properties.

Clarence Chu

Nippon Building Fund (8951) - Calculating Passive Tracking of J-REITs and Index Events Around Offers

Nippon Building Fund (8951) - Japan's oldest and largest REIT - announced a small secondary offering. That provides an occasion to look at J-REIT...

Travis Lundy

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