Head of Research, IPOs & Placements, Aequitas Research

Sumeet Singh

Head of Research, IPOs & Placements

Smartkarma

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Orix JREIT plans to raise US$135m/JPY15bn in order to acquire two properties. The company has been issuing equity to acquire new assets, every year for the past three years once in March and then again in the second half of the year.We had covered the previous Mar-15 deal, <a href="https://www.smartkarma.com/insights/orix-jreit-8954-jp-another-placement-for-acquisition-will-be-dpu-accretive" target="_blank" data-smartkarma-citation="insights:513">Orix JREIT (8954 JP) - Another placement for acquisition; will be DPU accretive</a>, which went on to yield a 5% upside in the first month.The deal scores a positive score on our framework as: company's previous deals have all…

Orix JREIT plans to raise US$135m/JPY15bn in order to acquire two properties. The company has been issuing equity to acquire new assets, every year for the past three years once in March and then again in the second half of the year.We had covered the previous Mar-15 deal, Orix JREIT (8954 JP) - Another placement for acquisition; will be DPU accretive, which went on to yield a 5% upside in the first month.The deal scores a positive score on our framework as: company's previous deals have all…

Orix JREIT - Its that Time of the Year Again

Orix JREIT intends to raise US$166m for acquiring one office and one residential building, which are together worth JPY14bn (US$123m). The balance amount raised will be used to pay off debt. We would take the deal, given:<ul><li>According to management the acquisition will add 2.7% to DPU despite the 5%+ dilution</li><li>In its previous 8 deals, stock has performed well returning 3.5% over one month&nbsp;and&nbsp;&nbsp;11.7% over one year. The company undertook two placements in the previous year with both returning 5%+ in the first month and over 30% in one year.</li><li>The stock has been performing well against the index over the past six months and has a strong track record of outperforming the index and its peers over the past five years.</li><li>Valuations at 31.9x p/e and 1.5x p/b remain favourable as compared to peers.</li></ul>

Orix JREIT intends to raise US$166m for acquiring one office and one residential building, which are together worth JPY14bn (US$123m). The balance amount raised will be used to pay off debt. We would take the deal, given:According to management the acquisition will add 2.7% to DPU despite the 5%+ dilutionIn its previous 8 deals, stock has performed well returning 3.5% over one month&nbsp;and&nbsp;&nbsp;11.7% over one year. The company undertook two placements in the previous year with both returning 5%+ in the first month and over 30% in one year.The stock has been performing well against the index over the past six months and has a strong track record of outperforming the index and its peers over the past five years.Valuations at 31.9x p/e and 1.5x p/b remain favourable as compared to peers.

Orix JREIT (8954 JP) - Another placement for acquisition; will be DPU accretive

Japan

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.

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Orix JREIT Inc (8954 JP)

Orix JREIT - Its that Time of the Year Again

Orix JREIT plans to raise US$135m/JPY15bn in order to acquire two properties. The company has been issuing equity to acquire new assets, every year...

Sumeet Singh

Orix JREIT (8954 JP) - Another placement for acquisition; will be DPU accretive

Orix JREIT intends to raise US$166m for acquiring one office and one residential building, which are together worth JPY14bn (US$123m). The balance...

Sumeet Singh

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