In today’s briefing:
- Goodman Group (GMG AU): Much Bigger Index Impact of US$2.5bn Equity Offering
- EFC India Limited Q3 Update: Driving Growth Through Design and Build Verticals
- Asia Real Estate Tracker (18-Feb-2025): ADIA, Hines sell Shanghai Trophy Tower for $1.5B
- Arvind SmartSpaces Limited Q3 Update: Leveraging Market Trends for Future Revenue Potential
- UniCredit’s Banco BPM Takeover: A Deal on the Brink?
- Volta Finance Limited (VTAS): 2024 experience bodes well for 2025
- Clip Money, Inc. – Raising Estimates Due to Faster Growth and the New Green Dot Partnership
Goodman Group (GMG AU): Much Bigger Index Impact of US$2.5bn Equity Offering
- Goodman Group went into a trading halt and then announced results and an underwritten equity placement of A$4bn (US$2.54bn) to pursue growth opportunities across logistics and data center operations.
- The stock has dropped since CIC’s stake sale in December but still continues to handily outperform peers.
- There will be some passive buying in the stock at the time of share settlement and more a few days later to mop up around 37% of the offering.
EFC India Limited Q3 Update: Driving Growth Through Design and Build Verticals
- EFCI Ltd (EFCIL IN) witnessed a robust Q3 & 9M FY25 growth with sequential revenue, EBITDA, and PAT increases; new SM REIT registration and strategic seat expansion initiatives bolster operations.
- Strong financial performance amid market challenges underscores resilience in flexible workspace and real estate sectors, positioning EFC India to capitalize on rising demand and government support.
- Company is planning to add 25000 seats annually, where expecting furniture vertical worth INR 150Crs and Design & Build worth INR 225-250Crs next year.
Asia Real Estate Tracker (18-Feb-2025): ADIA, Hines sell Shanghai Trophy Tower for $1.5B
- ADIA and Hines sell Shanghai Tower for $1.5B to insurer-backed fund, showcasing large-scale real estate transactions.
- Keppel DC REIT sells German data centre at 39% loss from 2019 purchase price, indicating potential challenges in the real estate market.
- TPG offers $65M for Econ Healthcare, Singapore nursing home operator, amidst growing interest in healthcare industry investments.
Arvind SmartSpaces Limited Q3 Update: Leveraging Market Trends for Future Revenue Potential
- Arvind SmartSpaces (ARVSMART IN) posted 149% YoY revenue growth in Q3 FY25 and secured new projects worth RS. 3,850 crore, despite a 20% YoY decline in bookings due to approval delays.
- Improved profitability and strategic project wins underscore its resilience in a dynamic real estate market, driving long-term value despite operational hurdles.
- Company is planning to deploy Rs.500 to Rs. 600 crore in both vertical and horizontal projects over the next six months.
UniCredit’s Banco BPM Takeover: A Deal on the Brink?
- Danish Compromise Uncertainty: If Banco BPM fails to secure Danish Compromise approval, its CET1 ratio could decline by 268bps, making it a riskier acquisition for UniCredit, potentially jeopardizing the deal.
- UniCredit’s Strategic Dilemma: UniCredit may renegotiate the exchange ratio, withdraw the bid, or pursue Commerzbank instead, as Banco BPM’s Anima acquisition increases capital consumption risks and complicates UniCredit’s strategic plans.
- Market Skepticism: As of February 18, 2025, Banco BPM’s shares trade at €9.04, while UniCredit’s offer values them at €8.47, leading to a +6.7% gross spread.
Volta Finance Limited (VTAS): 2024 experience bodes well for 2025
- Volta has delivered +21.2% 2024 total NAV return, outperforming i) B-rated CLO tranches (+19.2%), ii) US high yield (+8.2%), iii) Euro high yield (+8.6%), and iv) global loans (+7.3%).
- Its performance reflects positive markets and the incremental value added by the manager through its asset selection and portfolio management.
- Looking into 2025, we expect another strong year from CLOs: more market growth (partially driven by loans issued to fund greater PE activity), and stable, if not falling, defaults offsetting some spread tightening and fewer pull to par benefits from loans restructuring.
Clip Money, Inc. – Raising Estimates Due to Faster Growth and the New Green Dot Partnership
- Clip Money is a rapidly growing NCR-backed start-up based in Ottawa, Canada, and operating in Canada and the US.
- It is helping physical stores and businesses quickly, safely, and less expensively deposit cash into their bank accounts, as well as replenishing notes and coins for store operations.
- The company uses its proprietary software platform to facilitate cash management, and its network is made up of a network of DropBoxes, NCR ATMs located in retail outlets and a second half roll out at Green Dot locations.
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