Daily Brief Financials: Nippon Prologis Reit, Hana Financial, Curtis Banks, Euro, NFT, Tether, Supermarket Income REIT and more

• Japan’s largest logistics REIT Nippon Prologis Reit (3283 JP) (“NPR”) announced a US$183mn follow-on equity offering to fund their recent acquisition of a logistics facility.
• The primary offer quantity will be 86,851 units out of which 51,090 units and 35,761 units are expected to be allocated for domestic and international investors, respectively. 
• Below is 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.

• Nippon Prologis Reit (3283 JP) is looking to raise US$184m in its primary follow-on offering to acquire one property, namely Prologis Park Soka. 
• The deal is a somewhat large one to digest, at 14 days of three month ADV but only 3% dilution. 
• In this note, we will talk about the deal dynamics and run the deal through our ECM framework.

• In our latest South Korean banks screener; we stick with quality play Hana Financial and deep value Industrial Bank of Korea, despite rising credit quality headwinds
• We introduce delinquency ratio charts that show that NPLs and other poor quality credits are on a rising trend, yet most banks have healthy NPL provisions coverage
• Hana has a low PBV ratio relative to its premium ROE and an undemanding PEG; Industrial Bank of Korea has attractive multiples, PEG ratio and near top returns versus peers

• Deal remains subject to approvals from FCA, PRA, SRA and clearance by CMA. Curtis said the scheme will likely be delayed until Q3 2023. There’re potential antitrust and tech integration issues.
• Curtis trades at 15x Fwd P/E and the spread has widened to 7.7%. Some event-driven funds are cashing in partially while others are taking advantage of the blip.
• I think there’s still a reasonably good chance of a deal happening (implied c.68%), but considering issues in recent situations (Wood, EMIS, THG, even Caverion), investors’ concerns can be understood.

• The EUR/USD exchange rate has moved upwards with significant fluctuations over the course of March 2023.
• As it can be observed in the main graph (Graph 1), there was a period of fluctuations in the exchange rate but with a steady upward trend.
• The exchange rate fluctuated significantly over the course of the month reaching a high of 1.0901 on March 30th.

• Introduction Over the past few months, we have seen how ChatGPT has taken the world by storm.
• It is estimated that ChatGPT reached 100 million monthly active users in Jan 2023, just two months after launch, making it the fastest-growing consumer application in history.
• The popularity of ChatGPT has reignited conversations on the potential of artificial intelligence (AI).

• Ever since the March banking crisis, crypto trade volume and prices have been in the doldrums, with no strong movements in either direction.
• Over the weekend, daily volume dropped to multi-year lows.
• Yet, amid the lull, Tether’s market cap is quickly approaching a new all time high, with the total supply currently at $82.9 billion.

Supermarket Income REIT (SUPR) reported strong H123 results and expects to meet its full year dividend target on a fully covered basis. Earnings are fully protected from interest rate increases in the near term and we forecast rent growth to offset the eventual roll-off from hedging. The balance sheet is liquid and in this note we discuss the relative merits of debt repayment, reinvestment and share repurchases.