Alpha-Centric ESG Research

Kyle Rudden

Announcements keep on coming from <a href="https://www.smartkarma.com/entities/singapore-exchange-ltd" target="_blank" data-smartkarma-citation="entities:1047:1" rel="noopener">Singapore Exchange (SGX SP)</a> and its SGX FIRST sustainable investing platform. Weeks after launching Climate Impact X – SGX's carbon exchange joint venture with DBS, Standard Chartered, and Temasek – the exchange announced (on 14 June) the launch of the <a href="https://www.smartkarma.com/entities/sgx-nikkei-esg-reit-index-futures" target="_blank" data-smartkarma-citation="entities:33480:1" rel="noopener">SGX Nikkei ESG-REIT Index Futures (JRTA INDEX)</a> contract.For SGX, the launch further solidifies its position as Asia's leading financial exchange for all things sustainable investing and finance (and of course, REITs). For investors, the ESG-REIT Index futures contract expands the menu of products for REIT-related ESG investing. That is far more significant than it sounds; Real Estate is a sleeping ESG giant of sorts, and investment products are lacking.Therein lies the second of two goals for this Insight. The first is, rather obviously, to delve into the SGX Nikkei ESG-REIT product – the underlying index and futures contract. The second is to take it as an opportunity to broach an important, but often underrated, topic – the relationships between ESG and the Real Estate sector, including REITs. Much of it positive, or at least potentially so.Think about it. One billion buildings in the world already, and expected to double by 2060.

Announcements keep on coming from Singapore Exchange (SGX SP) and its SGX FIRST sustainable investing platform. Weeks after launching Climate Impact X – SGX's carbon exchange joint venture with DBS, Standard Chartered, and Temasek – the exchange announced (on 14 June) the launch of the SGX Nikkei ESG-REIT Index Futures (JRTA INDEX) contract.For SGX, the launch further solidifies its position as Asia's leading financial exchange for all things sustainable investing and finance (and of course, REITs). For investors, the ESG-REIT Index futures contract expands the menu of products for REIT-related ESG investing. That is far more significant than it sounds; Real Estate is a sleeping ESG giant of sorts, and investment products are lacking.Therein lies the second of two goals for this Insight. The first is, rather obviously, to delve into the SGX Nikkei ESG-REIT product – the underlying index and futures contract. The second is to take it as an opportunity to broach an important, but often underrated, topic – the relationships between ESG and the Real Estate sector, including REITs. Much of it positive, or at least potentially so.Think about it. One billion buildings in the world already, and expected to double by 2060.

SGX Nikkei ESG-REIT Index Futures Launch Is an Ideal Backdrop for an Important Topic: ESG and REITs

Index Rebal Trades & Special Situations, Quiddity Advisors

Janaghan Jeyakumar, CFA

Index Rebal Trades & Special Situations

Quiddity Advisors

Pan-Asia Catalysts/Events

Equity Capital Markets

Mitsubishi Estate Logistics / Equity Capital Markets

Today after the close, small-cap logistics JREIT <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> ("MEL") announced a <a href="https://mel-reit.co.jp/file/en-news-dd1ec7deddb6aa14bb62fd8762edcf46e6deef85.pdf" target="_blank" rel="noopener">follow-on equity offering</a> to fund part of their <a href="https://mel-reit.co.jp/file/en-news-4d5467181cf32a31228972be29054c2a2deca660.pdf" target="_blank" rel="noopener">recent acquisition</a> of five logistics properties. The primary offer quantity is 41,000 units and there is also an over-allotment quantity of 2,050 units. The size of this offering could be around ¥16.6bn (~US$157mn).<div>The Offer Price will be determined between 1st March and 3rd March (typically it has been the first day of this window for most JREIT offerings) and the two business days following the offer price determination day (pricing date) will be the application date. </div><div>More below the fold.</div>

Today after the close, small-cap logistics JREIT Mitsubishi Estate Logistics (3481 JP) ("MEL") announced a follow-on equity offering to fund part of their recent acquisition of five logistics properties. The primary offer quantity is 41,000 units and there is also an over-allotment quantity of 2,050 units. The size of this offering could be around ¥16.6bn (~US$157mn).The Offer Price will be determined between 1st March and 3rd March (typically it has been the first day of this window for most JREIT offerings) and the two business days following the offer price determination day (pricing date) will be the application date. More below the fold.

JREIT Offering: Mitsubishi Estate Logistics (3481 JP) - Avoidable

CRE Logistics REIT / Equity Capital Markets

On 4th January 2021, Small-cap logistics JREIT <a href="https://www.smartkarma.com/entities/cre-logistics-reit-inc" target="_blank" data-smartkarma-citation="entities:26745:1" rel="noopener">CRE Logistics REIT (3487 JP)</a> announced a follow-on equity offering in order to fund their recent acquisition of three logistics properties. The primary offer quantity is 73,000 units and the over-allotment quantity is 3,650 units (upper limit). The size of this offering could be around ¥11bn (~US$106mn). The Offer Price will be determined between the 13th of January and 18th of January (typically it has been the first day of this window for most JREIT offerings) and the day following the offer price determination day (pricing date) will be the application date.

On 4th January 2021, Small-cap logistics JREIT CRE Logistics REIT (3487 JP) announced a follow-on equity offering in order to fund their recent acquisition of three logistics properties. The primary offer quantity is 73,000 units and the over-allotment quantity is 3,650 units (upper limit). The size of this offering could be around ¥11bn (~US$106mn). The Offer Price will be determined between the 13th of January and 18th of January (typically it has been the first day of this window for most JREIT offerings) and the day following the offer price determination day (pricing date) will be the application date. 

JREIT Offering: CRE Logistics REIT (3487 JP) - Take It (Vs Comps)

Event-Driven

Advance Logistics Investment / Event-Driven

Tokyo-based small-cap logistics REIT <a href="https://www.smartkarma.com/entities/itochu-advance-logistics-inv" target="_blank" data-smartkarma-citation="entities:28286:1" rel="noopener">Itochu Advance Logistics Inv (3493 JP)</a> ("IAL") announced a <a href="https://www.ial-reit.com/file/en-news-d51a2eb5c48ad9bd73a68cc1cd3c75cfc756aedb.pdf" target="_blank" rel="noopener">follow-on equity offering</a> on 9th November 2020 in order to fund their <a href="https://www.ial-reit.com/file/en-news-072ecf57fd374ada76ef97b70fee086657a597ca.pdf" target="_blank" rel="noopener">recent acquisition</a> of four logistics real-estate properties. 
The size of this offering could be approximately ¥15.6bn (~US$150mn) and the domestic and foreign allocations are expected to be around 95% and 5% respectively. 
The Issue price will be decided between the 16th and 18th November (typically it has been the first day of this window for most JREITs) and the application period will be the next business days immediately after the pricing date. 
More below the fold.

Tokyo-based small-cap logistics REIT Itochu Advance Logistics Inv (3493 JP) ("IAL") announced a follow-on equity offering on 9th November 2020 in order to fund their recent acquisition of four logistics real-estate properties. 
The size of this offering could be approximately ¥15.6bn (~US$150mn) and the domestic and foreign allocations are expected to be around 95% and 5% respectively. 
The Issue price will be decided between the 16th and 18th November (typically it has been the first day of this window for most JREITs) and the application period will be the next business days immediately after the pricing date. 
More below the fold. 

JREIT Offering: Itochu Advance Logistics (3493 JP) - Take It

IPOs and Catalysts/Events, Global Equity Research Ltd

Arun George

IPOs and Catalysts/Events

Uncompromised, Independent, Conflict-Free Research

Global Equity Research Ltd

Global Equity Research was started in 2017 by a group of experienced research professionals. It was founded on a passionate belief in the importance and the need for uncompromised, independent, conflict-free research. We aim to provide differentiated and actionable primary and bottom up fundamental research.

Mitsui Fudosan Logistics Park Inc / Equity Capital Markets

<a href="https://www.smartkarma.com/entities/mitsui-fudosan-logistics-park-inc" target="_blank" data-smartkarma-citation="entities:24027:1" rel="noopener">Mitsui Fudosan Logistics Park Inc (3471 JP)</a> (MFLP) unveiled plans to raise up to JPY27.0 billion ($247 million) through a primary offering (95% of the offering) and third-party allotment. The pricing date is between 22 January and 28 January 2020.<div class="content-highlight">The proceeds from the placement will be used to will partly fund the JPY48.4 billion ($442 million) acquisitions of interests in three properties. Overall, we would be tempted to participate in the placement at around a 5% discount to the last close price.</div>

Mitsui Fudosan Logistics Park Inc (3471 JP) (MFLP) unveiled plans to raise up to JPY27.0 billion ($247 million) through a primary offering (95% of the offering) and third-party allotment. The pricing date is between 22 January and 28 January 2020.The proceeds from the placement will be used to will partly fund the JPY48.4 billion ($442 million) acquisitions of interests in three properties. Overall, we would be tempted to participate in the placement at around a 5% discount to the last close price.

Mitsui Fudosan Logistics Park Placement: Reasonable at a Discount

Japan

CRE Logistics REIT, Inc. is a real estate investment trust (REIT) that invests in real estate properties used for logistics facilities.

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CRE Logistics REIT (3487 JP)

SGX Nikkei ESG-REIT Index Futures Launch Is an Ideal Backdrop for an Important Topic: ESG and REITs

Singapore Exchange just launched the SGX Nikkei ESG-REIT Index futures contract. A multi-win for SGX, but it also serves as a reminder of how...

Kyle Rudden

JREIT Offering: Mitsubishi Estate Logistics (3481 JP) - Avoidable

Mitsubishi Estate Logistics (3481 JP) is conducting an offering. The deal is accretive but the fund has low-leverage and low yield vs peers, and...

Janaghan Jeyakumar, CFA

JREIT Offering: CRE Logistics REIT (3487 JP) - Take It (Vs Comps)

This is a large secondary offering to finance an accretive transaction for what has heretofore been the smallest logistics REIT in Japan. Wait...

Janaghan Jeyakumar, CFA

JREIT Offering: Itochu Advance Logistics (3493 JP) - Take It

Small cap logistics REIT Itochu Advance Logistics has only one prior follow-on offering in its history but REITs and logistics REITs in particular...

Janaghan Jeyakumar, CFA

Mitsui Fudosan Logistics Park Placement: Reasonable at a Discount

Mitsui Fudosan Logistics Park Inc (3471 JP) (MFLP) unveiled plans to raise up to JPY27.0 billion ($247 million) through a primary offering (95% of...

Arun George

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