Japan Specialist

Mark Chadwick

Thematic (Sector/Industry)

<ul>
<li>OVERSEAS.  SPX Caps another winning week - now 4/5 for the year;  Blow out Jobs report but Wages slowing - Goldilocks ? Powell speaks this week as DIS, UBER report.</li>
<li>JAPAN.  NKY Futs +0.4% vs Cash; Yen weakens to 132 handle as Amimiya forerunner for BOJ Governor;  Inbound resurgence reflecting in skyrocketing hotel rates;  Earnings this week - Watch Softbank</li>
<li>DAILY NUGGETS. NO ROCKING OF THE BOAT - BOJ Deputy Amamiya is set to take the mantle of leadership at the BOJ.</li>
</ul>


OVERSEAS.  SPX Caps another winning week - now 4/5 for the year;  Blow out Jobs report but Wages slowing - Goldilocks ? Powell speaks this week as DIS, UBER report.
JAPAN.  NKY Futs +0.4% vs Cash; Yen weakens to 132 handle as Amimiya forerunner for BOJ Governor;  Inbound resurgence reflecting in skyrocketing hotel rates;  Earnings this week - Watch Softbank
DAILY NUGGETS. NO ROCKING OF THE BOAT - BOJ Deputy Amamiya is set to take the mantle of leadership at the BOJ.


Good Morning Japan |4 /5 as SPX Weekly Wins Continue;Blow Out NFP Report ! BoJ's Amamiya "THE ONE" ?

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

Kenedix Residential Investment / Event-Driven

<ul>
<li>Today after the close, small-cap JREIT <a href="https://www.smartkarma.com/entities/kenedix-residential-investment" target="_blank" data-smartkarma-citation="entities:17149:1" rel="noopener">Kenedix Residential Investment (3278 JP)</a> ("KDR") announced a follow-on equity offering to fund part of their recently-announced property acquisition. </li>
<li>The primary offer quantity is 47,500 units. In addition, there will also be an over-allotment quantity of 2,375 units. The total size of this offering could be roughly ¥9.4bn (~US$82mn). </li>
<li>Below is 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 the close, small-cap JREIT Kenedix Residential Investment (3278 JP) ("KDR") announced a follow-on equity offering to fund part of their recently-announced property acquisition. 
The primary offer quantity is 47,500 units. In addition, there will also be an over-allotment quantity of 2,375 units. The total size of this offering could be roughly ¥9.4bn (~US$82mn). 
Below is 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.


Kenedix Residential Investment (3278 JP): Could Outperform Peers in the Next Few Weeks

Alpha-Centric ESG Research

Kyle Rudden

Announcements keep on coming from <a href="https://www.smartkarma.com/entities/singapore-exchange-ltd" target="_blank" data-smartkarma-citation="entities:1047:1" rel="noopener">Singapore Exchange (SGX SP)</a> and its SGX FIRST sustainable investing platform. Weeks after launching Climate Impact X – SGX's carbon exchange joint venture with DBS, Standard Chartered, and Temasek – the exchange announced (on 14 June) the launch of the <a href="https://www.smartkarma.com/entities/sgx-nikkei-esg-reit-index-futures" target="_blank" data-smartkarma-citation="entities:33480:1" rel="noopener">SGX Nikkei ESG-REIT Index Futures (JRTA INDEX)</a> contract.For SGX, the launch further solidifies its position as Asia's leading financial exchange for all things sustainable investing and finance (and of course, REITs). For investors, the ESG-REIT Index futures contract expands the menu of products for REIT-related ESG investing. That is far more significant than it sounds; Real Estate is a sleeping ESG giant of sorts, and investment products are lacking.Therein lies the second of two goals for this Insight. The first is, rather obviously, to delve into the SGX Nikkei ESG-REIT product – the underlying index and futures contract. The second is to take it as an opportunity to broach an important, but often underrated, topic – the relationships between ESG and the Real Estate sector, including REITs. Much of it positive, or at least potentially so.Think about it. One billion buildings in the world already, and expected to double by 2060.

Announcements keep on coming from Singapore Exchange (SGX SP) and its SGX FIRST sustainable investing platform. Weeks after launching Climate Impact X – SGX's carbon exchange joint venture with DBS, Standard Chartered, and Temasek – the exchange announced (on 14 June) the launch of the SGX Nikkei ESG-REIT Index Futures (JRTA INDEX) contract.For SGX, the launch further solidifies its position as Asia's leading financial exchange for all things sustainable investing and finance (and of course, REITs). For investors, the ESG-REIT Index futures contract expands the menu of products for REIT-related ESG investing. That is far more significant than it sounds; Real Estate is a sleeping ESG giant of sorts, and investment products are lacking.Therein lies the second of two goals for this Insight. The first is, rather obviously, to delve into the SGX Nikkei ESG-REIT product – the underlying index and futures contract. The second is to take it as an opportunity to broach an important, but often underrated, topic – the relationships between ESG and the Real Estate sector, including REITs. Much of it positive, or at least potentially so.Think about it. One billion buildings in the world already, and expected to double by 2060.

SGX Nikkei ESG-REIT Index Futures Launch Is an Ideal Backdrop for an Important Topic: ESG and REITs

Technical Analyst, Vermilion Research

Joe Jasper

Technical Analyst

Technical and Quantitative Research

Vermilion Research

Vermilion’s objective is to deliver timely, actionable, and unique technical research to professional investors through the application of our various technical indicators.

Our research strategists seek to highlight securities which we believe are at major inflection points, based on our various technical and quantitative indicators, and offer asymmetric risk/return profiles. Our unique research methodology, centered on relative strength, enables our strategists to deliver superior investment recommendations.

Our process begins by organizing the universe of actively traded stocks into discrete sectors, then into industry groups. We then apply our technical and quantitative tools to identify developing price trends. Once attractive trends are identified within a selected sector or group, we screen for individual stocks which we believe offer the best risk/reward profile. We provide a historical perspective that often reveals, through our long-term charts, how price patterns often repeat themselves over time.

Technical Analysis

The weight of the evidence continues to support our mixed, but overall constructive outlook. Below we outline the basis for our outlook, and we also highlight opportunities within Real Estate and Health Care.

The weight of the evidence continues to support our mixed, but overall constructive outlook. Below we outline the basis for our outlook, and we also highlight opportunities within Real Estate and Health Care.

Global Equity Strategy: Opportunities In Real Estate and Health Care

Equity L/S Analyst | Forensic Accounting | India, Yellowstone Equity

Ankit Agrawal, CFA

Equity L/S Analyst | Forensic Accounting | India

Forensic Accounting

Zoomlion Heavy Industry H / Forensic Accounting

This is a follow-on insight from our original insight <a href="https://www.smartkarma.com/insights/a-forensic-analysis-tool-for-detecting-accounting-red-flags-focus-on-developed-asia" target="_blank" data-smartkarma-citation="insights:36832" rel="noopener">A Forensic Analysis Tool for Detecting Accounting Red Flags: Focus on Developed Asia</a>. This insight aims to provide updated results flagged by our model per the most recent updated financial data for the companies in our Developed Asia universe. Given that most companies have now reported CY19 or FY20 data, our model has taken this updated data and flagged updated set of the companies carrying high accounting risk. Per the updated results, our model has downgraded three new companies to the high risk category and upgraded four companies from high risk earlier to medium to no risk category now.
We have also made some minor enhancements to the model relating to 1) more robust handling of negative data points for interest rates and EBITDA, and 2) more robust calculations for Cash Flow from Operations (adjustments for any interest payments classified within operating activity per Cap IQ classification) and Pension &amp; Other Retirement Liabilities (alternate data using Debt Equivalent of Net PBO, where the base data is not available). These enhancements have also partly affected the updated results.

This is a follow-on insight from our original insight A Forensic Analysis Tool for Detecting Accounting Red Flags: Focus on Developed Asia. This insight aims to provide updated results flagged by our model per the most recent updated financial data for the companies in our Developed Asia universe. Given that most companies have now reported CY19 or FY20 data, our model has taken this updated data and flagged updated set of the companies carrying high accounting risk. Per the updated results, our model has downgraded three new companies to the high risk category and upgraded four companies from high risk earlier to medium to no risk category now.
We have also made some minor enhancements to the model relating to 1) more robust handling of negative data points for interest rates and EBITDA, and 2) more robust calculations for Cash Flow from Operations (adjustments for any interest payments classified within operating activity per Cap IQ classification) and Pension &amp; Other Retirement Liabilities (alternate data using Debt Equivalent of Net PBO, where the base data is not available). These enhancements have also partly affected the updated results.

Forensic Accounting | High Risk Companies in Developed Asia - Update 1.0

Japan

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.

Advance Residence Investment is a real estate investment trust (REIT) which invests in securitized real estate products. The Company is established through the merger of Advance Residence Investment and Nippon Residential Investment Corporation.

Japan Prime Realty Investment Corporation is a real estate investment trust (REIT) which mainly invests in office buildings and commercial-use facilities nationwide.

Industrial & Infrastructure Fund Investment Corporation is a a real estate investment trust (REIT). The Company invests in real estate properties such as facilities for industry and infrastructure institution.

Industrial & Infrastructure Fund Investment (3249 JP)

Industrial & Infrastructure Fund Investment

Nippon Accommodations Fund Inc. is a real estate investment trust (REIT), which invests in income producing properties.  The Company invests in residential buildings.

Sekisui House Reit, Inc. is a real estate investment trust (REIT) which mainly invests in real estate and securitized real estate products. Properties are mainly Business office buildings and are located in Tokyo, Osaka and Nagoya area. Sekisui House Reit, Inc. also invests in commercial properties in foreign countries.

Daiwa House REIT Investment Corp. is a real estate investment trust (REIT) which invests in securitized real estate products. The Company mainly invests in residential rental properties and commercial properties.

MORI HILLS REIT INVESTMENT CORPORATION is a real estate investment trust (REIT). The Company invests in real estate properties such as commercial and office buildings.

Mori Hills REIT Investment Corporation (3234 JP)

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.

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.

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.

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.

National Storage Affiliates Trust operates as a real estate investment trust. The Trust focuses on the ownership, operation, and acquisition of self-storage properties located within 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.

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Invincible Investment (8963 JP)

Good Morning Japan |4 /5 as SPX Weekly Wins Continue;Blow Out NFP Report ! BoJ's Amamiya "THE ONE" ?

NKY Futs +0.4% vs Cash; Yen weakens to 132 handle as Amimiya forerunner for BOJ Governor; Inbound resurgence reflecting in skyrocketing hotel...

Mark Chadwick

Kenedix Residential Investment (3278 JP): Could Outperform Peers in the Next Few Weeks

Small-cap JREIT Kenedix Residential Investment announced a follow-on equity offering to fund part of their recently-announced property acquisition....

Janaghan Jeyakumar, CFA

SGX Nikkei ESG-REIT Index Futures Launch Is an Ideal Backdrop for an Important Topic: ESG and REITs

Singapore Exchange just launched the SGX Nikkei ESG-REIT Index futures contract. A multi-win for SGX, but it also serves as a reminder of how...

Kyle Rudden

Global Equity Strategy: Opportunities In Real Estate and Health Care

The weight of the evidence continues to support our mixed, but overall constructive outlook. We outline the basis for our outlook and also...

Vermilion Research

Forensic Accounting | High Risk Companies in Developed Asia - Update 1.0

This is a follow-on insight from our original insight A Forensic Analysis Tool for Detecting Accounting Red Flags: Focus on Developed Asia. This...

Ankit Agrawal, CFA

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