Pan-Asia Catalysts/Events, Quiddity Advisors

Travis Lundy

HK Type 4 license through Ballingal Investment Advisors Ltd. ("BIA" or "BIAL")

BACKGROUND
I have 20+yrs experience in Asia doing alternative strategies (i.e. non-delta1 non long-only) in fixed income, equity derivatives, and activist/catalyst/event-driven and long-short equity strategies with most of that time spent managing money. 

4 years in fixed income macro, 8 years running internal hedge fund and 4yrs investment banking at Citi in Japan, 3 years running an Asia multi-strat portfolio at a hedge fund, 4+yrs as an independent special situations analyst.

Pan-Asia Catalysts/Events

Quiddity Advisors

Equity Capital Markets

Mitsubishi Estate Logistics / Equity Capital Markets

On the 19th of September, <a href="https://www.smartkarma.com/entities/mitsubishi-estate-logistics" target="_blank" data-smartkarma-citation="entities:25867:1" rel="noopener">Mitsubishi Estate Logistics (3481 JP)</a><a href="https://mel-reit.co.jp/file/en-news-68459b206fadc4110364716a337578576e7e2b17.pdf" target="_blank" rel="noopener">announced</a> an Offering to sell 57,150 units and 2,850 units in an Overallotment in an offering worth just over ¥19bn at time of announcement, which would finance the <a href="https://mel-reit.co.jp/file/en-news-668e52e23a643e84d2789599d2a877f384d735c7.pdf" target="_blank" rel="noopener">purchase of beneficiary interests</a> in one Logiport logistics park asset and two Logipark assets (Osaka, Aichi, Hyogo) from its sponsor, plus one industrial park in Sakai City, Osaka.The REIT revised its operating revenue and operating income forecasts for the period to Feb-2020 by +27% and +33.7% respectively, and considering dilution of units through the offering, revised the DPU (Distribution per unit (excluding Surplus Cash Distributions) by +7.5%. The stock has reacted well today, rising 7+%.This is the REIT's second follow-on offering since its IPO two+ years ago. Logistics REITs continue to grow faster than the market as a whole and MEL REIT is in a growth phase, only slowly raising its LTV Ratio. I would continue to expect follow-on offerings which are accretive, but in the meantime this one is good to take. It would be even better if the REIT manager were to more aggressively raise its LTV towards a more "responsible" 40%.Read on for more analysis of the REIT, its portfolio, its trading history vs peers, its peers, etc.

On the 19th of September, Mitsubishi Estate Logistics (3481 JP)announced an Offering to sell 57,150 units and 2,850 units in an Overallotment in an offering worth just over ¥19bn at time of announcement, which would finance the purchase of beneficiary interests in one Logiport logistics park asset and two Logipark assets (Osaka, Aichi, Hyogo) from its sponsor, plus one industrial park in Sakai City, Osaka.The REIT revised its operating revenue and operating income forecasts for the period to Feb-2020 by +27% and +33.7% respectively, and considering dilution of units through the offering, revised the DPU (Distribution per unit (excluding Surplus Cash Distributions) by +7.5%. The stock has reacted well today, rising 7+%.This is the REIT's second follow-on offering since its IPO two+ years ago. Logistics REITs continue to grow faster than the market as a whole and MEL REIT is in a growth phase, only slowly raising its LTV Ratio. I would continue to expect follow-on offerings which are accretive, but in the meantime this one is good to take. It would be even better if the REIT manager were to more aggressively raise its LTV towards a more "responsible" 40%.Read on for more analysis of the REIT, its portfolio, its trading history vs peers, its peers, etc.

Mitsui Fudosan Logistics Park Inc (3471 JP)

Mitsubishi Estate Logistics REIT Offering (3481 JP): Good To Take The Discount