Pan-Asia Index Flows & Special Situations, Quiddity Advisors

Janaghan Jeyakumar, CFA

Pan-Asia Index Flows & Special Situations

Quiddity Advisors

Pan-Asia Catalysts/Events

Equity Capital Markets

Nippon Prologis Reit / Equity Capital Markets

<p>After market-close on 20th January 2021, Japan's largest logistics REIT <a href="https://www.smartkarma.com/entities/nippon-prologis-reit-inc" target="_blank" data-smartkarma-citation="entities:15683:1" rel="noopener">Nippon Prologis Reit (3283 JP)</a><strong>("NPR")</strong> announced a <a href="https://www.prologis-reit.co.jp/file/en-news-b0d810c85e41af5a300408f36b3443f0d4da157a.pdf" target="_blank" rel="noopener">follow-on equity offering</a> to fund part of their<a href="https://www.prologis-reit.co.jp/file/en-news-ff89da88651b734300e60c8d18e6c0bc05cd7770.pdf" target="_blank" rel="noopener"> recent acquisition of three logistics facilities</a>.</p><p>The size of this offering could be around ¥34bn (~US$330mn). </p><p>The primary offer quantity will be 110,480 units out of which 64,080 units and 46,400 units are expected to be allocated for domestic and international investors respectively. In addition, there is also an over-allotment quantity of 5,520 units. </p><p>The Offer Price will be determined between 27th January and 01st February (typically it has been the first day of this window for most JREIT offerings) and the day following the offer price determination day (pricing date) will be the application date. </p>

After market-close on 20th January 2021, Japan's largest logistics REIT Nippon Prologis Reit (3283 JP)("NPR") announced a follow-on equity offering to fund part of their recent acquisition of three logistics facilities.The size of this offering could be around ¥34bn (~US$330mn). The primary offer quantity will be 110,480 units out of which 64,080 units and 46,400 units are expected to be allocated for domestic and international investors respectively. In addition, there is also an over-allotment quantity of 5,520 units. The Offer Price will be determined between 27th January and 01st February (typically it has been the first day of this window for most JREIT offerings) and the day following the offer price determination day (pricing date) will be the application date. 

JREIT Offering: Nippon Prologis REIT (3283 JP) - Take It (Vs Comps)

Event-Driven

<p>In 2020, we have so far witnessed 15 follow-on JREIT offerings cumulatively raising JPY463bn (~US$4.5bn). This has been something of a weak year, understandable because of the covid-19 crisis which hit equity market and JREIT prices in March, and keeping them soft for months afterwards.</p>
<p>Historically, January and February are the busiest months, for a variety of reasons.</p>
<p>From 2015-2020, on average, there have been ~7 offerings from the top 40 JREITs announced within the first two months of the calendar year accounting for roughly a third of the total number of offerings in each year during that period. </p>
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Source: Quiddity, Capital IQ (Data)</div>
In this insight, we take a look at the prospective candidates who are most likely to launch follow-on equity offerings near-term, and we look at the performance characteristics of J-REIT follow-on offerings and the likelihood of profit from participating in the event.</section>

In 2020, we have so far witnessed 15 follow-on JREIT offerings cumulatively raising JPY463bn (~US$4.5bn). This has been something of a weak year, understandable because of the covid-19 crisis which hit equity market and JREIT prices in March, and keeping them soft for months afterwards.
Historically, January and February are the busiest months, for a variety of reasons.
From 2015-2020, on average, there have been ~7 offerings from the top 40 JREITs announced within the first two months of the calendar year accounting for roughly a third of the total number of offerings in each year during that period. 









Source: Quiddity, Capital IQ (Data)
In this insight, we take a look at the prospective candidates who are most likely to launch follow-on equity offerings near-term, and we look at the performance characteristics of J-REIT follow-on offerings and the likelihood of profit from participating in the event.

J-REIT Offering Primer: Get Ready for Offering Season 2021

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.

Mitsui Fudosan Logistics Park Inc / Equity Capital Markets

<p><a href="https://www.smartkarma.com/entities/mitsui-fudosan-logistics-park-inc" target="_blank" data-smartkarma-citation="entities:24027:1" rel="noopener">Mitsui Fudosan Logistics Park Inc (3471 JP)</a> (MFLP) unveiled plans to raise up to JPY27.0 billion ($247 million) through a primary offering (95% of the offering) and third-party allotment. The pricing date is between 22 January and 28 January 2020.</p><div class="content-highlight"><p>The proceeds from the placement will be used to will partly fund the JPY48.4 billion ($442 million) acquisitions of interests in three properties. Overall, we would be tempted to participate in the placement at around a 5% discount to the last close price.</p></div>

Mitsui Fudosan Logistics Park Inc (3471 JP) (MFLP) unveiled plans to raise up to JPY27.0 billion ($247 million) through a primary offering (95% of the offering) and third-party allotment. The pricing date is between 22 January and 28 January 2020.The proceeds from the placement will be used to will partly fund the JPY48.4 billion ($442 million) acquisitions of interests in three properties. Overall, we would be tempted to participate in the placement at around a 5% discount to the last close price.

Mitsui Fudosan Logistics Park Placement: Reasonable at a Discount

Pan-Asia Catalysts/Events, Quiddity Advisors

Travis Lundy

Lasalle Logiport REIT / Equity Capital Markets

<p>On the 4th of September, <a href="https://www.smartkarma.com/entities/lasalle-logiport-reit" target="_blank" data-smartkarma-citation="entities:22658:1" rel="noopener">Lasalle Logiport Reit (3466 JP)</a><a href="http://lasalle-logiport.com/file/en-news-a59b3d46e380946ab4e8b7292dcc4a97f60d0deb.pdf" target="_blank" rel="noopener">announced</a> an Offering to sell 145,714 units and 7,286 units in an Overallotment in an offering worth just over ¥20bn which would finance the <a href="http://lasalle-logiport.com/file/en-news-16a85f8b2e83de6bbe3182f3c19d3c2e7fe27c61.pdf" target="_blank" rel="noopener">purchase of partial beneficiary interests</a> in two LOGIPORT assets (one in Osaka, one in Hyogo) from its sponsor.</p><p>This is the REIT's second follow-on offering since its IPO three years ago. Logistics REITs continue to grow faster than the market as a whole and LaSalle Logiport has a relatively 'active' way of thinking about capital management. I would continue to expect follow-on offerings which are accretive, but in the meantime this one is good to take.</p><p>Read on for more analysis of the REIT, its portfolio, its trading history vs peers, its peers, etc.</p>

On the 4th of September, Lasalle Logiport Reit (3466 JP)announced an Offering to sell 145,714 units and 7,286 units in an Overallotment in an offering worth just over ¥20bn which would finance the purchase of partial beneficiary interests in two LOGIPORT assets (one in Osaka, one in Hyogo) from its sponsor.This is the REIT's second follow-on offering since its IPO three years ago. Logistics REITs continue to grow faster than the market as a whole and LaSalle Logiport has a relatively 'active' way of thinking about capital management. I would continue to expect follow-on offerings which are accretive, but in the meantime this one is good to take.Read on for more analysis of the REIT, its portfolio, its trading history vs peers, its peers, etc.

LaSalle Logiport REIT (3466): Active Management Gets You An Accretive Follow-On

<p><a href="https://www.smartkarma.com/entities/lasalle-logiport-reit" target="_blank" data-smartkarma-citation="entities:22658:1" rel="noopener">Lasalle Logiport Reit (3466 JP)</a> /LLR unveiled plans to raise around ¥20.6 billion ($150 million) through a public offering of 145,714 units, based on a minimum 2.5% discount to the last close price.</p><div class="content-highlight"><p>The proceeds from the placement will be used to partly fund the ¥35.1 billion ($330 million) acquisitions of two properties. Overall, we believe that the acquisitions are sensible, and would participate in the offering at around 5% discount to the last close price.</p></div>

Lasalle Logiport Reit (3466 JP) /LLR unveiled plans to raise around ¥20.6 billion ($150 million) through a public offering of 145,714 units, based on a minimum 2.5% discount to the last close price.The proceeds from the placement will be used to partly fund the ¥35.1 billion ($330 million) acquisitions of two properties. Overall, we believe that the acquisitions are sensible, and would participate in the offering at around 5% discount to the last close price.

LaSalle Logiport REIT Offering: Go for It

Japan

Japan Logistics Fund Inc. is a real estate investment trust (REIT) that directly invests in real estate properties used for logistics businesses.  The Company also invests in securitized real estate products.

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Japan Logistics Fund (8967 JP)

JREIT Offering: Nippon Prologis REIT (3283 JP) - Take It (Vs Comps)

This fits the model in the J-REIT Offering Primer (published late 2020). All 9 previous offerings by N-Prologis have come at a 2.0% discount. And...

Janaghan Jeyakumar, CFA

J-REIT Offering Primer: Get Ready for Offering Season 2021

JREIT Follow-On Offerings - A Primer: January and February are the busiest times of the year for a variety of reasons and there are multiple...

Janaghan Jeyakumar, CFA

Mitsui Fudosan Logistics Park Placement: Reasonable at a Discount

Mitsui Fudosan Logistics Park Inc (3471 JP) (MFLP) unveiled plans to raise up to JPY27.0 billion ($247 million) through a primary offering (95% of...

Arun George

LaSalle Logiport REIT (3466): Active Management Gets You An Accretive Follow-On

On the 4th of September, Lasalle Logiport Reit (3466 JP)announced an Offering to sell 145,714 units and 7,286 units in an Overallotment in an...

Travis Lundy

LaSalle Logiport REIT Offering: Go for It

Lasalle Logiport Reit (3466 JP) /LLR unveiled plans to raise around ¥20.6 billion ($150 million) through a public offering of 145,714 units, based...

Arun George

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