Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

<ul>
<li>Buy <a href="https://www.smartkarma.com/entities/hankyu-hanshin-reit-inc" target="_blank" data-smartkarma-citation="entities:12654:1" rel="noopener">Hankyu Hanshin REIT, Inc. (8977 JP)</a> on any weakness. There will be strength ahead.</li>
<li>With <a href="https://www.smartkarma.com/entities/enn-energy-holdings-ltd" target="_blank" data-smartkarma-citation="entities:316:1" rel="noopener">ENN Energy (2688 HK)</a> suspended pursuant to the Takeovers Code, a third party Offer, as opposed to ENN Group, seems more likely. </li>
<li>Be long <a href="https://www.smartkarma.com/entities/idemitsu-kosan-co-ltd" target="_blank" data-smartkarma-citation="entities:109:1" rel="noopener">Idemitsu (5019 JP)</a> vs <a href="https://www.smartkarma.com/entities/eneos-holdings-inc" target="_blank" data-smartkarma-citation="entities:638:1" rel="noopener">ENEOS</a> for the next several weeks. Light and easy drift trade based on pressure increasing and pressure ending before new news in May.</li>
</ul>


Buy Hankyu Hanshin REIT, Inc. (8977 JP) on any weakness. There will be strength ahead.
With ENN Energy (2688 HK) suspended pursuant to the Takeovers Code, a third party Offer, as opposed to ENN Group, seems more likely. 
Be long Idemitsu (5019 JP) vs ENEOS for the next several weeks. Light and easy drift trade based on pressure increasing and pressure ending before new news in May.


Last Week in Event SPACE: Hankyu Hanshin REIT, ENN Energy, Idemitsu, HKBN, Jardine Matheson

Travis Lundy

<ul>
<li>3D Investment Partners launched a Partial Tender Offer to buy a 10+% stake in <a href="https://www.smartkarma.com/entities/hankyu-hanshin-reit-inc" target="_blank" data-smartkarma-citation="entities:12654:1" rel="noopener">Hankyu Hanshin REIT, Inc. (8977 JP)</a>. The REIT finally responded with a "Neutral" stance. </li>
<li>But they also upgraded earnings forecasts, bought a building, and announced the Sponsor would buy units in the market over the next year. It's big. </li>
<li>And that creates flows, which then engender other reactive flows, and cascading flows, and because the sector isn't rich, there may be a tailwind.</li>
</ul>


3D Investment Partners launched a Partial Tender Offer to buy a 10+% stake in Hankyu Hanshin REIT, Inc. (8977 JP). The REIT finally responded with a "Neutral" stance. 
But they also upgraded earnings forecasts, bought a building, and announced the Sponsor would buy units in the market over the next year. It's big. 
And that creates flows, which then engender other reactive flows, and cascading flows, and because the sector isn't rich, there may be a tailwind.


Hankyu Hanshin REIT (8977) - Good Fundamental News, a Bigly Buyback, and Cascading Flows to Come

<ul>
<li>For the second time in 3 weeks, 3D Investment Partners has launched, unannounced, a Partial Tender Offer for pure investment purposes, for a 10-15% stake in a REIT.</li>
<li>Last time it was <a href="https://www.smartkarma.com/entities/ntt-ud-reit-investment-corporation" target="_blank" data-smartkarma-citation="entities:19428:1" rel="noopener">NTT UD REIT Investment Corporation (8956 JP)</a>. This time it is <a href="https://www.smartkarma.com/entities/hankyu-hanshin-reit-inc" target="_blank" data-smartkarma-citation="entities:12654:1" rel="noopener">Hankyu Hanshin REIT, Inc. (8977 JP)</a>. </li>
<li>The trade last time was to sell NTT UD on the pop and replace with peers. That has worked. The trade is probably the same here. </li>
</ul>


For the second time in 3 weeks, 3D Investment Partners has launched, unannounced, a Partial Tender Offer for pure investment purposes, for a 10-15% stake in a REIT.
Last time it was NTT UD REIT Investment Corporation (8956 JP). This time it is Hankyu Hanshin REIT, Inc. (8977 JP). 
The trade last time was to sell NTT UD on the pop and replace with peers. That has worked. The trade is probably the same here. 


3D Launches Partial Tender Offer on Hankyu Hanshin REIT (8977)

<ul>
<li>Today, <a href="https://www.smartkarma.com/entities/tokyu-corp" target="_blank" data-smartkarma-citation="entities:3357:1" rel="noopener">Tokyu Corp (9005 JP)</a> announced it would increase its stake its family REIT, buying up to 48,880 units or 5.0% of units out over the next six months.</li>
<li>This comes a couple of days after Hankyu Hanshin announced the same for its REIT, discussed <a href="https://www.smartkarma.com/insights/hankyu-hanshin-reit-8977-good-fundamental-news-a-bigly-buyback-and-cascading-flows-to-come" target="_blank" rel="noopener">here</a>. Others have done so before. Tokyu has. Others will do so going forward. </li>
<li>The main reason? Squeeze the 'share' price higher. Get the REIT to 1.0x PNAV then stuff it with sponsor-held properties. That's not bad. The goal is a higher price.</li>
</ul>


Today, Tokyu Corp (9005 JP) announced it would increase its stake its family REIT, buying up to 48,880 units or 5.0% of units out over the next six months.
This comes a couple of days after Hankyu Hanshin announced the same for its REIT, discussed here. Others have done so before. Tokyu has. Others will do so going forward. 
The main reason? Squeeze the 'share' price higher. Get the REIT to 1.0x PNAV then stuff it with sponsor-held properties. That's not bad. The goal is a higher price.


Tokyu Corp (9005) To Lift Stake in Tokyu REIT (8957) Again - Bigger Than You Think It Is

<ul>
<li>Reportedly buyout firms are "vying for" <a href="https://www.smartkarma.com/entities/trend-micro-inc" target="_blank" data-smartkarma-citation="entities:13172:1" rel="noopener">Trend Micro Inc (4704 JP)</a>. The stock went limit up today. Again. The stock is now getting to the expensive side.</li>
<li>
<a href="https://www.smartkarma.com/entities/furukawa-co-ltd" target="_blank" data-smartkarma-citation="entities:19521:1" rel="noopener">Furukawa (5715 JP)</a> has changed their capital allocation policy for the third time. The company is a cyclical, and will likely always suffer the indignity of a cyclical multiple.</li>
<li>While it often pays to follows where the family invests when assessing holdco structures, <a href="https://www.smartkarma.com/entities/melco-international-development-ltd" target="_blank" data-smartkarma-citation="entities:809:1" rel="noopener">Melco International (200 HK)</a>'s NAV discount is simply too narrow for a simple holding company structure.</li>
</ul>


Reportedly buyout firms are "vying for" Trend Micro Inc (4704 JP). The stock went limit up today. Again. The stock is now getting to the expensive side.

Furukawa (5715 JP) has changed their capital allocation policy for the third time. The company is a cyclical, and will likely always suffer the indignity of a cyclical multiple.
While it often pays to follows where the family invests when assessing holdco structures, Melco International (200 HK)'s NAV discount is simply too narrow for a simple holding company structure.


Last Week in Event SPACE: Trend Micro, Furukawa, Melco, Ingenia/Lifestyle

Japan

Hankyu Hanshin REIT, Inc. is a real estate investment trust (REIT). The Company invests in real estate properties such as commercial and office buildings.

Price Gauge
52-week Range	0.00 - 0.00
Market Cap (USDm)	0.00
P/E	0.00
Dividend (Yield)	0.00

Hankyu Hanshin REIT, Inc. (8977 JP)

Last Week in Event SPACE: Hankyu Hanshin REIT, ENN Energy, Idemitsu, HKBN, Jardine Matheson

It’s Sunday! Pour yourself a coffee, grab a comfortable seat, and sift through a brief summary of insights on various events discussed during the...

David Blennerhassett

Hankyu Hanshin REIT (8977) - Good Fundamental News, a Bigly Buyback, and Cascading Flows to Come

3DIP's Tender Offer for Hankyu Hanshin REIT is replaced by a Sponsor purchase over the next year of similar size (on the back of better earnings)....

Travis Lundy

3D Launches Partial Tender Offer on Hankyu Hanshin REIT (8977)

3D Investment Partners has launched a second partial tender offer to buy a 10-15% stake in a J-REIT. Also "meh" in price terms. It's a good long...

Travis Lundy

Tokyu Corp (9005) To Lift Stake in Tokyu REIT (8957) Again - Bigger Than You Think It Is

Tokyu bought 5% of Tokyu REIT from Sep24 to March25. They have now reloaded for another 5%. Float is not that big. And the REIT is under-levered,...

Travis Lundy

Last Week in Event SPACE: Trend Micro, Furukawa, Melco, Ingenia/Lifestyle

It’s Sunday! Pour yourself a coffee, grab a comfortable seat, and sift through a brief summary of insights on various events discussed during the...

David Blennerhassett

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)