In today’s briefing:
- FTSE EPRA Nareit Developed Asia Preview: A Few More Inclusions
- HDN/AVN Merger & Potential ASX200 Inclusion in March (Or Earlier)
- Short-Term Itochu Buyback – A Cushion, But Style Bias Matters More
- Grupo Gilinski Ups the Ante on Grupo Suramericana with Enhanced Bids
FTSE EPRA Nareit Developed Asia Preview: A Few More Inclusions
- The next FTSE EPRA Nareit Index review will use data from 21 February. The changes will be announced on 2 March and implemented at the close on 18 March.
- Potential inclusions at the review include Heiwa Real Estate, One REIT and ESR Kendall Square REIT while there is a possibility of Digital Core REIT (DCREIT SP) being included.
- Digital Core REIT (DCREIT SP) could be included if it publishes audited financial statements in the next week. Else inclusion could take place at the June rebalance.
HDN/AVN Merger & Potential ASX200 Inclusion in March (Or Earlier)
- Aventus Group (AVN AU) securityholders vote on the proposed merger with HomeCo Daily Needs REIT (HDN AU)/ Home Consortium Ltd (HMC AU) on 25 January.
- If approved, Aventus Group (AVN AU) will stop trading after the close on 3 February and the shares in issue for HomeCo Daily Needs REIT (HDN AU) will increase substantially.
- That will make HDN AU the highest ranked non-ASX200 constituent and a high probability add for March. There could be an earlier inclusion to replace SYD AU in the index.
Short-Term Itochu Buyback – A Cushion, But Style Bias Matters More
- Itochu today announced a buyback program to buy US$500mm+ in the next 10 weeks.
- Net income growth, a rising dividend, and balanced risk book help it perform with low beta and medium correlation to peers.
- The low volatility-relative multiple is supportive, and the buyback helps, but style bias vs Peers matters more.
Grupo Gilinski Ups the Ante on Grupo Suramericana with Enhanced Bids
- Gilinski’s higher price incremental share bids for both Grupo Suramericana and Nutresa are intended to make Gilinski the largest shareholder in Suramericana and the majority shareholder in Nutresa
- We maintain that this strategy is the next step in Gilinski’s plan to gain control of BanColombia indirectly, and also gain control of Suramericana’s interests in asset management and pensions
- We see further upside potential for Grupo Suramericana shares, as well as BanColombia shares; the latter are attractively valued versus LatAm peers
Before it’s here, it’s on Smartkarma
