Daily Brief Financials: Japan Real Estate Investment, Areit (AyalaLand REIT), Thai Life Insurance, Turkiye Garanti Bankasi As, Afrexim Bank, Bumi Serpong Damai, CK Asset Holdings, INVESCO Asia Trust PLC, Hywin Holdings and more

• Today after market close, one of Japan’s largest office JREITs Japan Real Estate Investment (8952 JP) announced a US$150mn follow-on equity offering to fund their recent acquisition of two properties.
• The primary offer quantity will be 35,200 units and there is an over-allotment quantity of 2,464 units.
• In this insight, we take a closer look at the details of this offering and the potential of this offering to trigger strong secondary market performance in the following weeks.

• Ayala Land Inc (ALI PM) aims to raise around US$121m via selling around 11% of Areit (AyalaLand REIT) (AREIT PM).
• Ayala Land and AREIT have been moving towards concluding an asset for shares swap that had been in the works for a while. This placement appears to stem from that.
• In this note, we will talk about the placement and run the deal through our ECM framework.

• In this insight, we take a look at the potential ADDs/DELs for the SET50 index rebalance in June 2023.
• Based on the latest available data, I expect 2 ADDs/DELs but there are couple of names close to the border and final rankings could change with changes in share prices.
• The three-month reference period used for the June 2023 rebalance will end on 31st May 2022.

• Established in 1946, Turkiye Garanti Bank (Garanti) is Turkey’s second-largest private bank.
• As of June, 30 2017, it reported consolidated assets of TRY 335,942 MM, aided by a pioneering position in all lines of business by pursuing a profitable and sustainable growth strategy.
• Garanti is an integrated financial services group that operates in the corporate, commercial, SME, payment systems, retail, private and investment banking sectors, along with its subsidiaries in pension and life insurance, leasing, factoring, brokerage, and asset management.

• Japan Real Estate Investment (8952 JP) is looking to raise around US$140m (JPY18.3bn) through a follow-on offering to acquire one new property and an additional co-ownership interest in another property.
• The deal is a large one to digest at 10 days of three month ADV while there will be a dilution of approximately 2.7% of TSO (assuming overallotment option exercised). 
• In this note, we will look at the assets to be acquired, impact on forecast and portfolio, and run the deal through our framework.

• Established in 1993 and headquartered in Cairo (Egypt), the African Export-Import Bank (“AFREXI”) is a sub-regional Multilateral Development Bank (MDB) that was established by its then 27 member states (now 44 countries) to promote intra-African and extra-African trade.
• The bank is universally recognised as an MDB under Article 102 of the United Nations Charter and enjoys supranational status in all its member states.
• Being an MDB accords AFREXI certain rights and privileges not accorded to normal financial institutions within its member countries.

• Earnings fall 80% YoY on slow revenue recognition, higher interest expense and FX loss. 1H18 presales momentum remains strong.
• TP lowered to IDR2,000, valuations look undemanding.
• With a vast and low cost landbank centred on its BSD City township, BSDE offers attractive exposure to Indonesia’s long term growth in property demand, especially in the wealthy Greater Jakarta region.

• Core profits +13% y/y due to contribution from newly acquired infrastructure & utility business
• Recurring income +38%, growing ahead of management target and supporting dividend growth
• Strong balance sheet support further share buyback and acquisition.

Leaning into opportunities in China, along with stock selection in India, Korea and Hong Kong, has contributed positively to performance. The fund is ahead of its Asian closed-ended peers on an NAV total return (TR) basis for the year to end-February 2023 and over the long term it continues to generate a double-digit annualised NAV TR (c 10% in sterling over the past 10 years), supported by consistent income. IAT pays a regular six-monthly dividend equivalent to 2% of NAV (4% pa). The managers, Ian Hargreaves and Fiona Yang, target double-digit annualised returns from each portfolio holding over a rolling three-year period.

• Operating Income +15.5% YoY [excluding Healthcare expenses, up +21.2% YoY], with solid cost discipline and expense control
• Net Income rose fractionally 0.3%, impacted by Healthcare initial ramp-up expenses, and other one-time non-recurring charges
• Net Cash [zero debt, and not including restricted cash/client deposits] increased of RMB536 million [$83 million], or $2.85 per ADR equalling 43% of the stock price