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

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)

Alpha-Centric ESG Research

Kyle Rudden

<p>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.</p><p>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.</p><p>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.</p><p>Think about it. One billion buildings in the world already, and expected to double by 2060.</p>

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

Pan-Asia Catalysts/Events, Quiddity Advisors

Travis Lundy

<p>On the 15th of August, <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> announced a Domestic Offering to sell 21,900 units and 1,100 units in an Overallotment in an offering worth just over ¥10bn which would finance the purchase of a 50% stake in an asset called Ikebukuro GLOBE, which is being sold by the sponsor.</p><figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/097/157/original/Screenshot%202019-08-27%20at%207.30.04%20PM.png?1566905430" class="editor-image img-responsive" data-smartkarma-image-id="97157"></figure><div style="text-align: left;" class="content-caption">source: capitalIQ, Quiddity</div><p>Read on for more.</p>

On the 15th of August, Frontier Real Estate Invest (8964 JP) announced a Domestic Offering to sell 21,900 units and 1,100 units in an Overallotment in an offering worth just over ¥10bn which would finance the purchase of a 50% stake in an asset called Ikebukuro GLOBE, which is being sold by the sponsor.source: capitalIQ, QuiddityRead on for more.

Frontier REIT (8964 JP) Offering: Take It

Aeon Reit Investment / Equity Capital Markets

<p>On 20 August 2019, <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 revisions to its <a href="https://www.aeon-jreit.co.jp/file/en-news-e90d53b25ed2683dc31535925f44242d7ac9cc22.pdf" target="_blank" rel="noopener">forecasts of performance and distributions</a> in the period ending January 2020 and July 2020, the <a href="https://www.aeon-jreit.co.jp/file/en-news-662a69617c6ae06b5443a1e8986dcd8ae6095da4.pdf" target="_blank" rel="noopener">purchase</a> of two AEON MALL properties for ¥27.7bn, and a <a href="https://www.aeon-jreit.co.jp/file/en-news-2920979b9b512140248d51482b1a5eb04ab44889.pdf" target="_blank" rel="noopener">Primary Offering</a> of up to 91,400 units with a greenshoe of up to 4,750 units available. </p><p>Below we look at historical performance of the REIT around offering dates both with and without the offering discount, and compared to the TSEREIT Index. </p>

On 20 August 2019, Aeon REIT Investment (3292 JP) announced revisions to its forecasts of performance and distributions in the period ending January 2020 and July 2020, the purchase of two AEON MALL properties for ¥27.7bn, and a Primary Offering of up to 91,400 units with a greenshoe of up to 4,750 units available. Below we look at historical performance of the REIT around offering dates both with and without the offering discount, and compared to the TSEREIT Index. 

APAC IPOs & Placements

Zhen Zhou, Toh

Smartkarma

Smartkarma unites the fragmented investment industry, connecting institutional investors, independent research providers, and corporates within a single network.

Research Reinvented

<p><em>The Smartkarma ECM Team puts out a weekly update on the deals we have covered recently, along with updates for upcoming IPOs.</em></p><div><h2>Accuracy Rate:</h2></div><p>Our overall accuracy rate is <strong>75.1% for IPOs </strong>and <strong>64.0% for Placements.</strong></p><p><em>(Performance measurement criteria is explained at the end of the note)</em></p><figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/023/893/original/Total-Deals-Since-Inception-Accuracy-Rate-Since-Inception-_chartbuilder.png?1491619853" class="editor-image img-responsive" data-smartkarma-image-id="23893"></figure><figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/023/894/original/2017-Total-Deals-2017-Accuracy-Rate-_chartbuilder.png?1491619863" class="editor-image img-responsive" data-smartkarma-image-id="23894"></figure><h2><em>Placements:<br></em></h2><p><strong>What we wrote on this week:</strong></p><p><strong><a href="https://www.smartkarma.com/insights/imax-china-placement-stretched-valuations-and-disappointment-from-previous-deal-still-lingers" target="_blank" data-smartkarma-citation="insights:9817">IMAX China Placement - Stretched Valuations and Disappointment from Previous Deal Still Lingers</a></strong></p><ul><li>The deal is almost as large as the previous placement. It represents 27 days of…</li></ul>

The Smartkarma ECM Team puts out a weekly update on the deals we have covered recently, along with updates for upcoming IPOs.Accuracy Rate:Our overall accuracy rate is 75.1% for IPOs and 64.0% for Placements.(Performance measurement criteria is explained at the end of the note)Placements: What we wrote on this week:IMAX China Placement - Stretched Valuations and Disappointment from Previous Deal Still LingersThe deal is almost as large as the previous placement. It represents 27 days of…

Smartkarma: ECM Coverage Weekly Update (8 April 2017)

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)

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

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

Frontier REIT (8964 JP) Offering: Take It

On the 15th of August, Frontier Real Estate Invest (8964 JP) announced a Domestic Offering to sell 21,900 units and 1,100 units in an Overallotment...

Travis Lundy

Aeon REIT (3292) Offering - Take It

On 20 August 2019, Aeon REIT Investment (3292 JP) announced revisions to its forecasts of performance and distributions in the period ending...

Travis Lundy

Smartkarma: ECM Coverage Weekly Update (8 April 2017)

The Smartkarma ECM Team puts out a weekly update on the deals we have covered recently, along with updates for upcoming IPOs.Accuracy Rate:Our...

Zhen Zhou, Toh

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