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

Mapletree North Asia Commercial Trust / Event-Driven

<ul>
<li>
<a href="https://www.smartkarma.com/entities/mapletree-commercial-trust" target="_blank" data-smartkarma-citation="entities:106:1" rel="noopener">Mapletree Commercial Trust (MCT SP)</a>’s EGM, <a href="https://www.smartkarma.com/entities/mapletree-north-asia-commercial-trust" target="_blank" data-smartkarma-citation="entities:5127:1" rel="noopener">Mapletree North Asia Commercial Trust (MAGIC SP)</a>/MNACT’s EGM and trust scheme meeting will take place on 23 May. The effective date is 8 August.</li>
<li>The IFA considers the scheme consideration to be fair. We think that IFA’s valuation approach is broadly sound with some areas for improvement. </li>
<li>For a 17 August payment, the gross and annualised spread of the cash-only consideration (including permitted clean-up DPU) is 1.6% and 5.6%, respectively. </li>
</ul>



Mapletree Commercial Trust (MCT SP)’s EGM, Mapletree North Asia Commercial Trust (MAGIC SP)/MNACT’s EGM and trust scheme meeting will take place on 23 May. The effective date is 8 August.
The IFA considers the scheme consideration to be fair. We think that IFA’s valuation approach is broadly sound with some areas for improvement. 
For a 17 August payment, the gross and annualised spread of the cash-only consideration (including permitted clean-up DPU) is 1.6% and 5.6%, respectively. 


MNACT's Scheme Meeting on 23 May, 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><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> 2H22 DPU -4.8% YoY; Robust rent reversions to end the fiscal year</li><li><a href="https://www.smartkarma.com/entities/esr-reit" target="_blank" data-smartkarma-citation="entities:10934" rel="noopener">ESR-REIT (EREIT SP)</a> 1Q22 DPU -9.6% YoY; Rising utilities costs despite steady underlying performance  </li><li><a href="https://www.smartkarma.com/entities/frasers-centrepoint-trust" target="_blank" data-smartkarma-citation="entities:2870" rel="noopener">Frasers Centrepoint Trust (FCT SP)</a> 1H22 DPU +2.3% YoY; Omicron wave tapering shopper traffic</li></ul>

AIMS APAC REIT (AAREIT SP) 2H22 DPU -4.8% YoY; Robust rent reversions to end the fiscal yearESR-REIT (EREIT SP) 1Q22 DPU -9.6% YoY; Rising utilities costs despite steady underlying performance  Frasers Centrepoint Trust (FCT SP) 1H22 DPU +2.3% YoY; Omicron wave tapering shopper traffic

ASEAN Builder's Scoop (27Apr22) - AAREIT Robust Rent Reversions

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.

Equity Capital Markets

Lendlease Global Commercial REIT / Equity Capital Markets

<ul>
<li>Lendlease REIT is looking to raise up to US$427m via a private placement and a preferential offering.</li>
<li>The deal is very well flagged as the acquisition was announced in Feb 2022 and the EGM approval for the same was received earlier this month.</li>
<li>In this note, we will run the deal through our ECM framework and talk about the recent updates.</li>
</ul>


Lendlease REIT is looking to raise up to US$427m via a private placement and a preferential offering.
The deal is very well flagged as the acquisition was announced in Feb 2022 and the EGM approval for the same was received earlier this month.
In this note, we will run the deal through our ECM framework and talk about the recent updates.


Lendlease Global REIT Placement - Very Well Flagged but Still Quite a Large One to Digest

<ul><li>Ascott Residence Trust (ART) acquires 4 rental housing and first student accommodation properties in Japan at 4% NOI yield; DPU accretive by 1.7%</li><li><a href="https://www.smartkarma.com/entities/frasers-centrepoint-trust" target="_blank" data-smartkarma-citation="entities:2870" rel="noopener">Frasers Centrepoint Trust (FCT SP)</a> Jan22 tenant sales at 113% of pre-Covid level</li><li>Latest Government Land Sales (GLS) tenders reflect strong interest from developers</li></ul>

Ascott Residence Trust (ART) acquires 4 rental housing and first student accommodation properties in Japan at 4% NOI yield; DPU accretive by 1.7%Frasers Centrepoint Trust (FCT SP) Jan22 tenant sales at 113% of pre-Covid levelLatest Government Land Sales (GLS) tenders reflect strong interest from developers

ASEAN Builder's Scoop (9Mar22) - ART Acquires Japan Properties at 4% Yield

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

CDL Hospitality Trusts / Equity Bottom-Up

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Singapore has announced simplified safe management measures as well as new vaccinated travel lanes (VTL) and increased VTL quotas as the country enters a new phase of dealing with the pandemic and is streamlining border measures.

Alongside the calibrated re-opening of borders and economy in the region, Asean countries with relaxed border controls saw international flight bookings increase significantly in Jan 2022. Countries such as Indonesia, the Philippines, Singapore, and Thailand also saw return economy-class bookings from travellers in the United Kingdom, United States and Germany rise 19 per cent to 300 per cent month on month in January, according to data from Skyscanner. Skyscanner also expects airlines to announce new schedules and build capacity to facilitate the return of international travel at scale.

In Singapore, Changi Airport passenger movement data has also seen upticks over the past 3 months. More notably, passenger volumes in December 2021 grew over 120 per cent month on month, building on from the 55 per cent month-on-month increase seen in Nov 2021. Despite being just at 15.3 per cent of pre-Covid monthly levels of about 5.7 million (on average across 2017 to 2019), the implementation of VTLs locally have had a positive impact. 
As Singapore's border progressively re-opens and the country moves into a new phase of the pandemic, investors' focus may shift towards stocks which potentially benefit from increased international travel, and retail and consumer spending.

Listed on the SGX are 12 S-Reits and property trusts which have significant exposure to Singapore related retail and hospitality assets.

All 12 trusts generated positive returns in the February month to date, averaging 6 per cent total returns. 
In the month-to-date, the top 5 performing retail and hospitality related S-REITs averaged 9 per cent total returns (and 4.8 per cent average total returns on a year-to-date basis) and are CDL HT (10.7 per cent total returns), CICT (10 per cent), Far East HT (9 per cent), Suntec REIT (8.8 per cent) and Frasers HT (6.7 per cent). 
The 5 saw a combined institutional net buy of S$67.5 million in the year to date. 
Far East Hospitality Trust reported 28.8 per cent and 23.4 per cent quarter-on-quarter increases in revenue per available room/unit in their hotels and serviced residences respectively in Q42021, citing long-stay corporate sources and loosening of travel restrictions as providing a boost to the hospitality industry. 
Frasers Centrepoint Trust noted that its portfolio tenants' sales exceeded pre-Covid levels in Dec 2021 and shopper traffic recovered following the ease of Covid restrictions. 
Cessation of work from home (WFH) as the default mode from January 2022 is expected to gradually increase shopper traffic.

Suntec Reit reported higher occupancy rates for its retail properties and noted that tenant sales recovered faster than footfall and exceeded pre-Covid levels in December 2021.

Management expects recovery to be further driven by the return of office workers and easing of safe management measures extended to events. REIT Watch is a weekly column on The Business Times,<a href="https://www.businesstimes.com.sg/companies-markets/green-shoots-for-retail-and-hospitality-s-reits-amid-new-pandemic-phase"> read </a>the original version.
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     Trusts with exposure to Retail and Hospitality related properties in Singapore


Singapore has announced simplified safe management measures as well as new vaccinated travel lanes (VTL) and increased VTL quotas as the country enters a new phase of dealing with the pandemic and is streamlining border measures.

Alongside the calibrated re-opening of borders and economy in the region, Asean countries with relaxed border controls saw international flight bookings increase significantly in Jan 2022. Countries such as Indonesia, the Philippines, Singapore, and Thailand also saw return economy-class bookings from travellers in the United Kingdom, United States and Germany rise 19 per cent to 300 per cent month on month in January, according to data from Skyscanner. Skyscanner also expects airlines to announce new schedules and build capacity to facilitate the return of international travel at scale.

In Singapore, Changi Airport passenger movement data has also seen upticks over the past 3 months. More notably, passenger volumes in December 2021 grew over 120 per cent month on month, building on from the 55 per cent month-on-month increase seen in Nov 2021. Despite being just at 15.3 per cent of pre-Covid monthly levels of about 5.7 million (on average across 2017 to 2019), the implementation of VTLs locally have had a positive impact.  
As Singapore's border progressively re-opens and the country moves into a new phase of the pandemic, investors' focus may shift towards stocks which potentially benefit from increased international travel, and retail and consumer spending.

Listed on the SGX are 12 S-Reits and property trusts which have significant exposure to Singapore related retail and hospitality assets.

All 12 trusts generated positive returns in the February month to date, averaging 6 per cent total returns.  
In the month-to-date, the top 5 performing retail and hospitality related S-REITs averaged 9 per cent total returns (and 4.8 per cent average total returns on a year-to-date basis) and are CDL HT (10.7 per cent total returns), CICT (10 per cent), Far East HT (9 per cent), Suntec REIT (8.8 per cent) and Frasers HT (6.7 per cent).  
The 5 saw a combined institutional net buy of S$67.5 million in the year to date.  
Far East Hospitality Trust reported 28.8 per cent and 23.4 per cent quarter-on-quarter increases in revenue per available room/unit in their hotels and serviced residences respectively in Q42021, citing long-stay corporate sources and loosening of travel restrictions as providing a boost to the hospitality industry.  
Frasers Centrepoint Trust noted that its portfolio tenants' sales exceeded pre-Covid levels in Dec 2021 and shopper traffic recovered following the ease of Covid restrictions.  
Cessation of work from home (WFH) as the default mode from January 2022 is expected to gradually increase shopper traffic.

Suntec Reit reported higher occupancy rates for its retail properties and noted that tenant sales recovered faster than footfall and exceeded pre-Covid levels in December 2021.

Management expects recovery to be further driven by the return of office workers and easing of safe management measures extended to events.  REIT Watch is a weekly column on The Business Times, read the original version.



REIT Watch - Green shoots for retail and hospitality S-Reits amid new pandemic phase

Singapore

Keppel DC REIT is Asia's first pure-play data centre REIT listed on the Singapore Exchange. Keppel DC REIT's investment strategy is to principally invest, directly or indirectly, in a diversified portfolio of income-producing real estate assets which are used primarily for data centre purposes, as well as real estate related assets.

Suntec Real Estate Investment Trust is a commercial real estate investment trust. The Trust invests in income-producing real estate that is primarily used for retail and/or office purposes.

Keppel REIT operates as a commercial real estate investment trust. The Trust owns and invests in a portfolio of income-producing office buildings and related real estate assets. Keppel REIT offers its services in Asia and Australia.

FLT offers investors an opportunity to invest in logistics and industrial real estate assets strategically located within major logistics and industrial markets of Australia, Germany and the Netherlands.

Frasers Logistics & Commercial Trust (FLT SP)

SPH REIT is a Singapore-based REIT established principally to invest, directly or indirectly, in a portfolio of income-producing real estate which is used primarily for retail purposes in Asia-Pacific, as well as real estate-related assets.

ESR-LOGOS Real Estate Investment Trust (“ESR-LOGOS REIT”) is a leading New Economy and future-ready Asia Pacific S-REIT. Listed on the Singapore Exchange Securities Trading Limited since 25 July 2006, ESR-LOGOS REIT invests in quality income-producing industrial properties in key gateway markets.

As at 28 April 2022, ESR-LOGOS REIT holds interests in a diversified portfolio of logistics properties, high-specifications industrial properties, business parks and general industrial properties with total assets of approximately S$5.5 billion. Its portfolio comprises 84 properties located across the developed markets of Singapore (63 assets) and Australia (21 assets), with a total gross floor area of approximately 2.4 million sqm, as well as investments in three property funds in Australia. ESR-LOGOS REIT is also a constituent of the FTSE EPRA Nareit Global Real Estate Index. 

ESR-LOGOS REIT is managed by ESR-LOGOS Funds Management (S) Limited (the “Manager”) and sponsored by the ESR Group (“ESR”). The Manager is owned by ESR (67.3%), Shanghai Summit Pte. Ltd. (25.0%), and Mitsui & Co., Ltd (7.7%), respectively.

For further information on ESR-LOGOS REIT, please visit www.esr-logosreit.com.sg.

Parkway Life Real Estate Investment Trust (Parkway Life REIT) invests primarily in income producing real estate and real estate related assets in the Asia Pacific region. The trust's real estate is used primarily for healthcare and healthcare-related purposes.

OUE Commercial Real Estate Investment Trust (“OUE C-REIT”) is one of the largest diversified Singapore REITs (“S-REITs”) with total assets of S$6.0 billion as at 31 December 2022. With seven properties across the commercial and hospitality segments in Singapore and Shanghai, the property portfolio comprises more than 2.1 million square feet of prime office and retail space, and 1,643 upper upscale hotel rooms.

OUE C-REIT invests in income-producing real estate used primarily for commercial purposes (including real estate used primarily for office and/or retail purposes) in financial and business hubs, hospitality and/or hospitality-related purposes, as well as real estate-related assets.

Mapletree Industrial Trust is a Singapore-focused real estate investment trust with a large and diversified portfolio of industrial properties. The Trust invests in a diverse portfolio of industrial properties with the primary objective of achieving an attractive level of return from rental income and for long-term capital growth.

CDL Hospitality Trusts is a stapled group compromising H-REIT and HBT. H-REIT is a real estate investment trust that invest in a portfolio of income-producing properties and HBT is a business trust.

Japan Hotel REIT Investment Corporation is a real estate investment trust(REIT) which invests in securitized real estate products. The Company mainly invests in real estate properties used in hotels.

United Urban Investment Corporation is a real estate investment trust (REIT). The Company directly invests in real estate properties such as shopping centers, offices, hotels, and residential buildings.

ORIX JREIT Inc. is a real estate investment trust (REIT) which invests in securitized real estate products.  The Company directly invests in real estate properties such as offices, rental housings, and hotels.

Corporate Office Properties Trust is a real estate investment trust which focuses on the acquisition, ownership and operation of suburban office properties located in high-growth submarkets.

The Macerich Company is a fully integrated, self-administered and self-managed real estate investment trust.  The Company acquires, owns, redevelops, manages, and leases regional and community shopping centers located throughout the United States.

Invincible Investment Corp is a real estate investment trust (REIT) which  invests in securitized real estate products. TGR Investment invests in income  producing residential and office buildings.

Medical Properties Trust Inc. is a self-advised real estate investment trust formed to acquire and develop net-leased healthcare facilities. These facilities include inpatient rehabilitation hospitals, long-term acute care hospitals, regional acute care hospitals, ambulatory surgery centers, and other single-discipline healthcare facilities such as heart hospitals.

National Health Investors, Inc. invests in income producing health care properties primarily via property ownership and providing mortgage financing. It's major assets are in the long term care industry, followed by investments in acute care hospitals, medical office buildings, assisted living facilities, retirement centers and projects for the developmentally disabled.

KLCC Property Holdings Bhd comprises of units in a Real Estate Investment Trust (KLCC REIT) stapled together with the ordinary shares of KLCC Property Holdings Berhad. The Stapled Security, through the subsidiaries of KLCC Property Holdings Berhad, is engaged in providing facility management services and car parking management services.

EPR Properties is a real estate investment trust.  The Company acquires and develops properties leased to entertainment and entertainment related business operators generally under long-term triple net leases. The Company plans to focus primarily on megaplex theaters and entertainment themed retail centers.

Frasers Centrepoint Trust is a retail real estate investment trust focused on growing unitholder value through asset management, financial management and strategic investments.  The trust invests in retail properties in Singapore and overseas.

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Frasers Centrepoint Trust (FCT SP)

MNACT's Scheme Meeting on 23 May, IFA Opinion

The IFA considers the scheme consideration to be fair. For a 17 August payment, the annualised spread of the cash-only consideration (including...

Arun George

ASEAN Builder's Scoop (27Apr22) - AAREIT Robust Rent Reversions

EREIT rising utilities cost; FCT tapering shopper traffic; MINT boosted by acquisitions; SSREIT voted down Charlie Chan as Director

SCCM Asia Research

Lendlease Global REIT Placement - Very Well Flagged but Still Quite a Large One to Digest

Lendlease REIT is looking to raise up to US$427m via a private placement and a preferential offering. The deal is very well flagged.

Sumeet Singh

ASEAN Builder's Scoop (9Mar22) - ART Acquires Japan Properties at 4% Yield

FCT Jan22 tenant sales at 113% pre-Covid level; 2 GLS tenders receive solid bids; SWIB to sell HQ for S$30.8m; TRCB latest launches fully sold

SCCM Asia Research

REIT Watch - Green shoots for retail and hospitality S-Reits amid new pandemic phase

Singapore has announced simplified safe management measures as well as new vaccinated travel lanes (VTL) and increased VTL...

Singapore Exchange Ltd (SGX)

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