In today’s briefing:
- Embassy Office Parks REIT Block – Likely Well Flagged and Overhang Will Be Removed
- Philippines Exchange (PSE PM): Updates from Q3/Q4, Catalysts Lining Up for Long-Term
- Morning Views Asia: China South City
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Embassy Office Parks REIT Block – Likely Well Flagged and Overhang Will Be Removed
- Blackstone (BX US) is looking to raise around US$834m through a secondary block deal. This will be a clean-up as Blackstone fully exits from Embassy Office Parks REIT (EMBASSY IN).
- The deal is a large one to digest, at approximately 397.2 days of three month ADV and 20.7% of current mcap.
- In this note, we will talk about the selldown and run the deal through our ECM framework.
Philippines Exchange (PSE PM): Updates from Q3/Q4, Catalysts Lining Up for Long-Term
- Q3 2023 results for the Philippine Stock Exchange / (PSE PM) were uneventful. EBITDA margins were rock solid at>60%, and net margins were>40%. Revenues and profits were up 1.3%/51% YoY.
- Cash and Investments at 4.8 bn pesos account for 32% of the market capitalization. The cash will aid in acquiring the remaining 79% stake in PDS.
- Trading at 19x/17x FY23e/24e and a dividend yield of 5.3%/5.9%, there are several catalysts to drive earnings over the next few years (and investors are paid to wait).
Morning Views Asia: China South City
Lucror Analytics Morning Views comprise our fundamental credit analysis, opinions and trade recommendations on high yield issuers in the region, based on key company-specific developments in the past 24 hours. Our Morning Views include a section with a brief market commentary, key market indicators and a macroeconomic and corporate event calendar.