Pan-Asia Index Rebalances/ Events/ Delta One, Periscope Analytics

Brian Freitas

Pan-Asia Index Rebalances/ Events/ Delta One

Periscope Analytics

Periscope Analytics focuses on event-driven trades across Asia Pacific and provides comprehensive, timely and systematic coverage of index changes to major Asia Pacific indices in a structured manner.

The analysis includes forecasted inclusions and exclusions to all major Asian indices that have significant amount of tracking assets, including estimates of passive buy/sell flow on the stocks. The service also provides commentary and impact of market consultations, ground rule changes, and other events (IPOs, spin-offs, M&A) that could lead to index changes and passive flow.

Periscope Analytics works with multi-strategy hedge funds, proprietary trading firms, stat arb trading groups and long-only investors that invest and trade in the Asia Pacific region with the data being used to trade index rebalances, avoid pre-positioning and passive flow, and to time entry into and exit from stocks.

Event-Driven Trades Across Asia Pacific

Event-Driven

<ul>
<li>
<a href="https://www.smartkarma.com/entities/kenedix-office-investment-co" target="_blank" data-smartkarma-citation="entities:16263:1" rel="noopener">Kenedix Office Investment Co</a>, <a href="https://www.smartkarma.com/entities/kenedix-residential-investment" target="_blank" data-smartkarma-citation="entities:17149:1" rel="noopener">Kenedix Residential Investment</a> and <a href="https://www.smartkarma.com/entities/kenedix-retail-reit-corp" target="_blank" data-smartkarma-citation="entities:188:1" rel="noopener">Kenedix Retail REIT</a> have announced a three-way absorption merger to create Kenedix Realty Investment Corporation.</li>
<li>The increased size and liquidity of the merged entity will put the stock on the radar of active investors and there could be a re-rating higher.</li>
<li>There will be some passive flows into the merged entity at the time of merger implementation and this will help the stock outperform its peers.</li>
</ul>



Kenedix Office Investment Co, Kenedix Residential Investment and Kenedix Retail REIT have announced a three-way absorption merger to create Kenedix Realty Investment Corporation.
The increased size and liquidity of the merged entity will put the stock on the radar of active investors and there could be a re-rating higher.
There will be some passive flows into the merged entity at the time of merger implementation and this will help the stock outperform its peers.


Kenedix Merger: Office, Residential, Retail & Index Implications

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.

<ul>
<li>The merger ratio is 0.67 <a href="https://www.smartkarma.com/entities/kenedix-office-investment-co" target="_blank" data-smartkarma-citation="entities:16263:1" rel="noopener">Kenedix Office Investment Co (8972 JP)</a>/KDO units per <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 unit and 0.84 KDO units per <a href="https://www.smartkarma.com/entities/kenedix-retail-reit-corp" target="_blank" data-smartkarma-citation="entities:188:1" rel="noopener">Kenedix Retail REIT (3453 JP)</a>/KRR unit.</li>
<li>The merger is sensible due to scale (the merged entity will be the third-largest J REIT by asset size), expansion opportunities and improved capital recycling. </li>
<li>The merger requires approval from all three sets of unitholders. We think this is likely as the deal metrics are fair for all three sets of unitholders. </li>
</ul>


The merger ratio is 0.67 Kenedix Office Investment Co (8972 JP)/KDO units per Kenedix Residential Investment (3278 JP)/KDR unit and 0.84 KDO units per Kenedix Retail REIT (3453 JP)/KRR unit.
The merger is sensible due to scale (the merged entity will be the third-largest J REIT by asset size), expansion opportunities and improved capital recycling. 
The merger requires approval from all three sets of unitholders. We think this is likely as the deal metrics are fair for all three sets of unitholders. 


Kenedix Office Investment (8972 JP): Merger with Kenedix Residential and Kenedix Retail REIT

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

Aeon Reit Investment / Equity Capital Markets

<p><a href="https://www.smartkarma.com/entities/aeon-reit-investment-corp" target="_blank" data-smartkarma-citation="entities:11010:1" rel="noopener">Aeon REIT Investment (3292 JP)</a> announced a <a href="https://www.aeon-jreit.co.jp/file/en-news-c4afa1361917d34d9433bbfa718f7d6ad5e1b5a6.pdf" target="_blank" rel="noopener">follow-on equity offering</a> after the close on 2nd August 2021 to fund part of their recent property acquisition.   </p><p>The primary offer quantity is 163,000 units. In addition, there will also be an over-allotment quantity of 8,150 units. The total size of this offering could be roughly ¥26bn (~US$230mn) which is slightly larger than some of the recent offerings by other JREITs. </p><div><p>The Offer Price will be determined between 11th August 2021 and 17th August 2021 (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></div><div>
<p><em>More below the fold.</em></p>
<hr>
<p><em>For a primer on J-REIT Offerings, their history, their patterns, etc, please refer to <strong><a href="https://www.smartkarma.com/insights/j-reit-offering-primer-get-ready-for-offering-season-2021" target="_blank" data-smartkarma-citation="insights:46416" rel="noopener">J-REIT Offering Primer: Get Ready for Offering Season 2021</a>.</strong></em></p>
</div>

Aeon REIT Investment (3292 JP) announced a follow-on equity offering after the close on 2nd August 2021 to fund part of their recent property acquisition.   The primary offer quantity is 163,000 units. In addition, there will also be an over-allotment quantity of 8,150 units. The total size of this offering could be roughly ¥26bn (~US$230mn) which is slightly larger than some of the recent offerings by other JREITs. The Offer Price will be determined between 11th August 2021 and 17th August 2021 (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. 
More below the fold.

For a primer on J-REIT Offerings, their history, their patterns, etc, please refer to J-REIT Offering Primer: Get Ready for Offering Season 2021.


JREIT Offering: Aeon REIT (3292 JP) - Take It Vs Comps

ESCON Japan REIT Investment / Equity Capital Markets

<p>Last Friday after market-close, Small-cap Retail JREIT <a href="https://www.smartkarma.com/entities/escon-japan-reit-investment" target="_blank" data-smartkarma-citation="entities:28278:1" rel="noopener">Escon Japan Reit Investment (2971 JP)</a> launched a follow-on equity offering (<a href="https://www.escon-reit.jp/file/news-2bc2805fa9a725adcb1adeb58f551bf37b84f21e.pdf" target="_blank" rel="noopener">J-only</a>) to fund part of their recent property acquisition.</p><p>The primary offer quantity is 65,700 units and there is an over-allotment quantity of 3,285 units. The total size of the offering could be approximately ¥10bn (~US$94mn). </p><div><p>The Offer Price will be determined between 19th July and 27th July 2021 (typically it has been the first day of this window for most JREIT offerings) and the two business days following the offer price determination day ("Pricing Date") will be the Application Period. </p></div><div><p><em>More below the fold.</em></p></div>

Last Friday after market-close, Small-cap Retail JREIT Escon Japan Reit Investment (2971 JP) launched a follow-on equity offering (J-only) to fund part of their recent property acquisition.The primary offer quantity is 65,700 units and there is an over-allotment quantity of 3,285 units. The total size of the offering could be approximately ¥10bn (~US$94mn). The Offer Price will be determined between 19th July and 27th July 2021 (typically it has been the first day of this window for most JREIT offerings) and the two business days following the offer price determination day ("Pricing Date") will be the Application Period. More below the fold.

JREIT Offering: Escon Japan REIT (2971 JP)

Frontier Real Estate Invest / Equity Capital Markets

<p>Today after market-close, <a href="https://www.smartkarma.com/entities/frontier-real-estate-invest" target="_blank" data-smartkarma-citation="entities:13526:1" rel="noopener">Frontier Real Estate Invest (8964 JP)</a> ("FRI") launched a follow-on equity offering (<a href="https://ssl4.eir-parts.net/doc/8964/tdnet/1990785/00.pdf" target="_blank" rel="noopener">J-only</a>) to fund part of their recent property acquisition. </p><p>The primary offer quantity is 28,792 units and the over-allotment quantity is 1,440 units. The total size of the offering could be approximately ¥13.6bn (~US$124mn). </p><div><p>The Offer Price will be determined between 24th and 25th June (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></div><div><p><em>More below the fold.</em></p></div>

Today after market-close, Frontier Real Estate Invest (8964 JP) ("FRI") launched a follow-on equity offering (J-only) to fund part of their recent property acquisition. The primary offer quantity is 28,792 units and the over-allotment quantity is 1,440 units. The total size of the offering could be approximately ¥13.6bn (~US$124mn). The Offer Price will be determined between 24th and 25th June (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. More below the fold.

JREIT Offering: Frontier Real Estate Invest (8964 JP)

Japan

Kenedix Retail REIT Corporation is a real estate investment trust (REIT) which mainly invests in real estate and securitized real estate products. The Company invests mainly in commercial properties which are shopping centers, and super markets in Tokyo metropolitan, Osaka, Nagoya and Fukuoka area.

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Kenedix Retail REIT (3453 JP)

Kenedix Merger: Office, Residential, Retail & Index Implications

Kenedix Office, Residential and Retail are merging to create a larger entity that will appear on active investors radars. There will also be buying...

Brian Freitas

Kenedix Office Investment (8972 JP): Merger with Kenedix Residential and Kenedix Retail REIT

The merger is sensible due to scale, expansion opportunities and improved capital recycling. All three sets of unitholders will be supportive as...

Arun George

JREIT Offering: Aeon REIT (3292 JP) - Take It Vs Comps

Aeon REIT (3292 JP) announced a follow-on equity offering on 2nd August 2021 to fund part of their recent property acquisition. The total size of...

Janaghan Jeyakumar, CFA

JREIT Offering: Escon Japan REIT (2971 JP)

Escon Japan REIT is doing its second secondary offering - the first came just before the covid crash. The retail sector is iffy. And Escon trades...

Janaghan Jeyakumar, CFA

JREIT Offering: Frontier Real Estate Invest (8964 JP)

Frontier REIT is coming out with its 6th ever secondary offering - this one to finance the purchase of buildings or stakes with an NOI yield below...

Janaghan Jeyakumar, CFA

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