Pan-Asia Catalysts/Events, Quiddity Advisors

Travis Lundy

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

<ul>
<li>
<a href="https://www.smartkarma.com/entities/nippon-building-fund-inc" target="_blank" data-smartkarma-citation="entities:1900:1" rel="noopener">Nippon Building Fund (8951 JP)</a> announced a smallish primary offering to assist in funding a portion of its Asset Replacement Campaign involving sales and purchases and an uplift in DPU.</li>
<li>That is an occasion to look at how much of float is held by passive trackers. </li>
<li>A test was done on the top 10 J-REITs on a holder-by-holder basis to see what one could expect at a minimum. The result may surprise some.</li>
</ul>



Nippon Building Fund (8951 JP) announced a smallish primary offering to assist in funding a portion of its Asset Replacement Campaign involving sales and purchases and an uplift in DPU.
That is an occasion to look at how much of float is held by passive trackers. 
A test was done on the top 10 J-REITs on a holder-by-holder basis to see what one could expect at a minimum. The result may surprise some.


Nippon Building Fund (8951) - Calculating Passive Tracking of J-REITs and Index Events Around Offers

Pan-Asia Index Flows & Special Situations, Quiddity Advisors

Janaghan Jeyakumar, CFA

Pan-Asia Index Flows & Special Situations

Japan Prime Realty Investmen / Event-Driven

<ul>
<li>Today after the close, <a href="https://www.smartkarma.com/entities/japan-prime-realty-investmen" target="_blank" data-smartkarma-citation="entities:495:1" rel="noopener">Japan Prime Realty Investment (8955 JP)</a> ("JPR") announced a follow-on equity offering to fund part of their recently announced property acquisition. </li>
<li>The primary offer quantity is 38,100 units. In addition, there will also be an over-allotment quantity of 1,900 units. The total size of this offering could be roughly ¥16bn (~US$135mn). </li>
<li>Below, we take a look at the attractiveness of JPR's latest offering with greater emphasis on the potential for strong post-offering secondary market performance.</li>
</ul>


Today after the close, Japan Prime Realty Investment (8955 JP) ("JPR") announced a follow-on equity offering to fund part of their recently announced property acquisition. 
The primary offer quantity is 38,100 units. In addition, there will also be an over-allotment quantity of 1,900 units. The total size of this offering could be roughly ¥16bn (~US$135mn). 
Below, we take a look at the attractiveness of JPR's latest offering with greater emphasis on the potential for strong post-offering secondary market performance.


Japan Prime Realty REIT (8955 JP): Offering Could Trigger Outperformance Vs TSEREIT Index

Large-cap Diversified JREIT <a href="https://www.smartkarma.com/entities/sekisui-house-reit-inc" target="_blank" data-smartkarma-citation="entities:7497:1" rel="noopener">Sekisui House Reit (3309 JP)</a> ("SHR") announced a follow-on equity offering after market close on 18th October 2021 to fund part of their recent property acquisition.The primary offer quantity is 137,500 units. In addition, there will also be an over-allotment quantity of 6,875 units. The total size of this offering could be roughly ¥12bn (~US$105mn). While JREIT offerings are mostly of interest to primary market investors, we also see such offerings as catalysts for strong secondary market performance making these events worth tracking for secondary market investors too. We have previously discussed the historical pre- and post-offering performance of JREITs in <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>.In this insight, we evaluate the attractiveness of SHR's latest offering with greater emphasis on the potential for strong post-offering secondary market performance. More below the fold.

Large-cap Diversified JREIT Sekisui House Reit (3309 JP) ("SHR") announced a follow-on equity offering after market close on 18th October 2021 to fund part of their recent property acquisition.The primary offer quantity is 137,500 units. In addition, there will also be an over-allotment quantity of 6,875 units. The total size of this offering could be roughly ¥12bn (~US$105mn). While JREIT offerings are mostly of interest to primary market investors, we also see such offerings as catalysts for strong secondary market performance making these events worth tracking for secondary market investors too. We have previously discussed the historical pre- and post-offering performance of JREITs in J-REIT Offering Primer: Get Ready for Offering Season 2021.In this insight, we evaluate the attractiveness of SHR's latest offering with greater emphasis on the potential for strong post-offering secondary market performance. More below the fold.

Sekisui House REIT (3309 JP): Post-Offering Market Outperformance Possible

<div>On average, J-REITs have historically outperformed the TSEREIT Index in the wake of follow-on equity offerings, with win rates exceeding 80%.</div><div>While the offerings are mostly of interest to primary market investors, we also see such offerings as catalysts for strong secondary market performance making these events worth tracking for secondary market investors too. We have previously discussed the historical pre- and post-offering performance of JREITs in <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>. In this insight, we evaluate the attractiveness of the latest candidate to launch such a follow-on equity offering - <a href="https://www.smartkarma.com/entities/activia-properties-inc" target="_blank" data-smartkarma-citation="entities:9498:1" rel="noopener">Activia Properties (3279 JP)</a> ("API")- with greater emphasis on the potential for strong post-offering secondary market performance. </div><a href="https://www.smartkarma.com/entities/activia-properties-inc" target="_blank" data-smartkarma-citation="entities:9498:1" rel="noopener">Activia Properties (3279 JP)</a> announced a follow-on equity offering today after market-close to fund part of their recent property acquisition. The primary offer quantity is 49,030 units. In addition, there will also be an over-allotment quantity of 2,500 units. The total size of this offering could be roughly ¥23bn (~US$210mn). More below the fold.

On average, J-REITs have historically outperformed the TSEREIT Index in the wake of follow-on equity offerings, with win rates exceeding 80%.While the offerings are mostly of interest to primary market investors, we also see such offerings as catalysts for strong secondary market performance making these events worth tracking for secondary market investors too. We have previously discussed the historical pre- and post-offering performance of JREITs in J-REIT Offering Primer: Get Ready for Offering Season 2021. In this insight, we evaluate the attractiveness of the latest candidate to launch such a follow-on equity offering - Activia Properties (3279 JP) ("API")- with greater emphasis on the potential for strong post-offering secondary market performance. Activia Properties (3279 JP) announced a follow-on equity offering today after market-close to fund part of their recent property acquisition. The primary offer quantity is 49,030 units. In addition, there will also be an over-allotment quantity of 2,500 units. The total size of this offering could be roughly ¥23bn (~US$210mn). More below the fold. 

Activia Properties (3279 JP): Offering Could Trigger Outperformance Vs TSEREIT Index

Daiwa House Reit Investment / Event-Driven

J-REITs have historically outperformed the TSEREIT Index on average in the wake of follow-on equity offerings, with win rates exceeding 80%.While the offerings are mostly of interest to primary market investors, we also see such offerings as catalysts for strong secondary market performance making these events worth tracking for secondary market investors too. We have previously discussed the historical pre- and post-offering performance of JREITs in <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>. In this insight, we evaluate the attractiveness of the latest candidate to launch such a follow-on equity offerings - <a href="https://www.smartkarma.com/entities/daiwa-house-reit-investment-cb077099-8006-45e4-83cf-6ac7f19cd384" target="_blank" data-smartkarma-citation="entities:11283:1" rel="noopener">Daiwa House Reit Investment (8984 JP)</a>("DHR") - with greater emphasis on the potential for strong post-offering secondary market performance. DHR announced a <a href="https://www.daiwahouse-reit.co.jp/file/en-ir_news-3926cc869b501ab42a4918d64facbc098f8c6b97.pdf" target="_blank" rel="noopener">follow-on equity offering</a> after the close on 18th August 2021 to fund part of their recent property acquisition. The primary offer quantity is 115,000 units. In addition, there will also be an over-allotment quantity of 9,000 units. The total size of this offering could be roughly ¥37.7bn (~US$343mn) which is slightly larger than some of the recent offerings by other JREITs. The Offer Price will be determined between 25th August 2021 and 27th August 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 Date. More below the fold.

J-REITs have historically outperformed the TSEREIT Index on average in the wake of follow-on equity offerings, with win rates exceeding 80%.While the offerings are mostly of interest to primary market investors, we also see such offerings as catalysts for strong secondary market performance making these events worth tracking for secondary market investors too. We have previously discussed the historical pre- and post-offering performance of JREITs in J-REIT Offering Primer: Get Ready for Offering Season 2021. In this insight, we evaluate the attractiveness of the latest candidate to launch such a follow-on equity offerings - Daiwa House Reit Investment (8984 JP)("DHR") - with greater emphasis on the potential for strong post-offering secondary market performance. DHR announced a follow-on equity offering after the close on 18th August 2021 to fund part of their recent property acquisition. The primary offer quantity is 115,000 units. In addition, there will also be an over-allotment quantity of 9,000 units. The total size of this offering could be roughly ¥37.7bn (~US$343mn) which is slightly larger than some of the recent offerings by other JREITs. The Offer Price will be determined between 25th August 2021 and 27th August 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 Date. More below the fold. 

Daiwa House REIT Investment (8984 JP): Expect A Correction Before Pricing Date

Japan

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.

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Sekisui House Reit (3309 JP)

Nippon Building Fund (8951) - Calculating Passive Tracking of J-REITs and Index Events Around Offers

Nippon Building Fund (8951) - Japan's oldest and largest REIT - announced a small secondary offering. That provides an occasion to look at J-REIT...

Travis Lundy

Japan Prime Realty REIT (8955 JP): Offering Could Trigger Outperformance Vs TSEREIT Index

Large-cap diversified JREIT JPR announced a ~US$135mn follow-on public equity offering to fund their recent property acquisition. This might act as...

Janaghan Jeyakumar, CFA