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.

Equity Capital Markets

RL Commercial REIT / Equity Capital Markets

<p><a href="https://www.smartkarma.com/entities/rl-commercial-reit" target="_blank" data-smartkarma-citation="entities:33809:1" rel="noopener">RL Commercial REIT (1888938D PM)</a>/RLC REIT is the REIT platform of <a href="https://www.smartkarma.com/entities/robinsons-land-corp" target="_blank" data-smartkarma-citation="entities:8831:1" rel="noopener">Robinsons Land Co (RLC PM)</a>, one of the leading property developers in the Philippines. RLC REIT has opened its books for an IPO in the Philippines to raise PHP24.4 billion ($483 million) through a secondary offering of 3.3 billion units (33.6% of outstanding units) at a maximum price of PHP7.31 per unit. The bookbuilding period will end on 20 August with pricing is set for 20 August. The official subscription period will run from 25 August to 3 September. </p><p>RLC REIT’s portfolio consists of 14 commercial real estate assets across the Philippines with an aggregate Portfolio GLA of 425,315 sqm and an appraised value of PHP73,884 million ($1,522 million).</p><p>RLC REIT’s IPO will the third REIT listing on the PSE after <a href="https://www.smartkarma.com/entities/areit-ayalaland-reit" target="_blank" data-smartkarma-citation="entities:28856:1" rel="noopener">Areit (AyalaLand REIT) (AREIT PM)</a>, <a href="https://www.smartkarma.com/entities/ddmp-reit" target="_blank" data-smartkarma-citation="entities:32154:1" rel="noopener">DDMP REIT (DDMPR PM)</a> and <a href="https://www.smartkarma.com/entities/filinvest-reit" target="_blank" data-smartkarma-citation="entities:33764:1" rel="noopener">Filinvest REIT (FILRT PM)</a>. RLC REIT’s listing will be quickly followed by the IPO of <a href="https://www.smartkarma.com/entities/megaworld-real-estate-investment-trust" target="_blank" data-smartkarma-citation="entities:33806:1" rel="noopener">Megaworld Real Estate Investment Trust (MREIT PM)</a> – <a href="https://www.smartkarma.com/insights/megaworld-reit-mreit-ipo-at-the-front-of-the-back-office" target="_blank" data-smartkarma-citation="insights:55851" rel="noopener">Megaworld REIT (MREIT) IPO: At the Front of the Back Office</a>.</p><div class="content-highlight"><p>On balance, we believe that RLC REIT has attractive characteristics and will be the largest REIT as measured by market cap, asset size, and geographical spread to be listed on the PSE. We will discuss valuation in our next note.</p></div>

RL Commercial REIT (1888938D PM)/RLC REIT is the REIT platform of Robinsons Land Co (RLC PM), one of the leading property developers in the Philippines. RLC REIT has opened its books for an IPO in the Philippines to raise PHP24.4 billion ($483 million) through a secondary offering of 3.3 billion units (33.6% of outstanding units) at a maximum price of PHP7.31 per unit. The bookbuilding period will end on 20 August with pricing is set for 20 August. The official subscription period will run from 25 August to 3 September. RLC REIT’s portfolio consists of 14 commercial real estate assets across the Philippines with an aggregate Portfolio GLA of 425,315 sqm and an appraised value of PHP73,884 million ($1,522 million).RLC REIT’s IPO will the third REIT listing on the PSE after Areit (AyalaLand REIT) (AREIT PM), DDMP REIT (DDMPR PM) and Filinvest REIT (FILRT PM). RLC REIT’s listing will be quickly followed by the IPO of Megaworld Real Estate Investment Trust (MREIT PM) – Megaworld REIT (MREIT) IPO: At the Front of the Back Office.On balance, we believe that RLC REIT has attractive characteristics and will be the largest REIT as measured by market cap, asset size, and geographical spread to be listed on the PSE. We will discuss valuation in our next note.

RL Commerical REIT IPO Initiation: A Big One

Head of Research, IPOs & Placements, Aequitas Research

Sumeet Singh

Head of Research, IPOs & Placements

IPOs and Placements coverage across Asia Pacific

Aequitas Research

We cover all listing across the Asia Pacific along with follow-up placements. As of Dec 2020, our team had covered 539 IPOs with a hit rate of 73.5% and 685 placements with a hit rate of 66.8%.

We combine fundamental bottom-up views with our proprietary quantitative framework to provide a holistic coverage across new listings and placements. Our coverage includes pre-IPO notes before the deal is launched, follow-up analysis once the deal is live and post-listing trading analysis as well.

<div><p><a href="https://www.smartkarma.com/entities/filinvest-reit" target="_blank" data-smartkarma-citation="entities:33764:1" rel="noopener">Filinvest Reit (FILRT PM)</a> (FREIT) raised around US$250m in its Philippines listing. The REIT is sponsored by <a href="https://www.smartkarma.com/entities/filinvest-land-inc" target="_blank" data-smartkarma-citation="entities:23026:1" rel="noopener">Filinvest Land (FLI PM)</a>. </p></div><div><p>FREIT’s initial property portfolio consists of 16 office towers located in Northgate Cyberzone, Alabang, and one office tower in Cebu City with an aggregate office space GLA of 299,158 sqm and 2,204 sqm of retail GLA. The portfolio will have a weighted average lease expiry (WALE) of 3.8 years with an occupancy of 89.7% as of Mar 2021. The Properties were valued at PHP48,547.4m (US$965m).</p></div><div>
<p>We looked at the background of the REIT in our earlier notes:</p>
<ul>
<li><a href="https://www.smartkarma.com/insights/filinvest-reit-ipo-almost-like-a-single-asset-reit-covid-hasn-t-been-kind" target="_blank" rel="noopener">Filinvest REIT IPO - Almost like a single asset REIT, COVID hasn’t been kind, and</a></li>
<li><a href="https://www.smartkarma.com/insights/filinvest-reit-ipo-hard-to-get-excited-despite-the-yield" target="_blank" rel="noopener">Filinvest REIT IPO - Hard to Get Excited, Despite the Yield</a></li>
</ul>
</div><div><p>In this note, we will talk about the trading dynamics.</p></div>

Filinvest Reit (FILRT PM) (FREIT) raised around US$250m in its Philippines listing. The REIT is sponsored by Filinvest Land (FLI PM). FREIT’s initial property portfolio consists of 16 office towers located in Northgate Cyberzone, Alabang, and one office tower in Cebu City with an aggregate office space GLA of 299,158 sqm and 2,204 sqm of retail GLA. The portfolio will have a weighted average lease expiry (WALE) of 3.8 years with an occupancy of 89.7% as of Mar 2021. The Properties were valued at PHP48,547.4m (US$965m).
We looked at the background of the REIT in our earlier notes:

Filinvest REIT IPO - Almost like a single asset REIT, COVID hasn’t been kind, and
Filinvest REIT IPO - Hard to Get Excited, Despite the Yield

In this note, we will talk about the trading dynamics.

Filinvest REIT IPO Trading - Set for Another Tepid Debut

<p>RL Commercial REIT (RREIT), sponsored by Robinsons Land Corporation (RLC), aims to raise up to US$491m in its Philippines listing.  It will be a 100% secondary shares offering, where the Sponsor will be selling part of its stake. </p><p>RREIT is a commercial REIT and its initial portfolio will consist of 14 PEZA-accredited commercial real estate properties located in CBDs across Metro Manila and key cities outside Metro Manila, namely, Naga, Tarlac, Cebu and Davao. </p><p>The properties will have a total GLA of 425,315 sqm, and are valued at PHP73.9bn as of Jun 21. They are majority Grade A commercial assets, leased primarily for office purposes. The portfolio had an occupancy of 99% and WALE of 4.3 years as of Jun 21.</p><p>RREIT has weathered the COVID-19 pandemic well. Despite some assets posting weaker occupancies in FY20, the overall occupancy has received to near full occupancy. Although, not all assets have been doing well.</p>

RL Commercial REIT (RREIT), sponsored by Robinsons Land Corporation (RLC), aims to raise up to US$491m in its Philippines listing.  It will be a 100% secondary shares offering, where the Sponsor will be selling part of its stake. RREIT is a commercial REIT and its initial portfolio will consist of 14 PEZA-accredited commercial real estate properties located in CBDs across Metro Manila and key cities outside Metro Manila, namely, Naga, Tarlac, Cebu and Davao. The properties will have a total GLA of 425,315 sqm, and are valued at PHP73.9bn as of Jun 21. They are majority Grade A commercial assets, leased primarily for office purposes. The portfolio had an occupancy of 99% and WALE of 4.3 years as of Jun 21.RREIT has weathered the COVID-19 pandemic well. Despite some assets posting weaker occupancies in FY20, the overall occupancy has received to near full occupancy. Although, not all assets have been doing well.

RL Commercial REIT Pre-IPO - Motley Crew of Assets Has Weathered COVID Well

<p><a href="https://www.smartkarma.com/entities/megaworld-real-estate-investment-trust" target="_blank" data-smartkarma-citation="entities:33806:1" rel="noopener">Megaworld Real Estate Investment Trust (MREIT PM)</a>/MREIT is the flagship REIT platform of <a href="https://www.smartkarma.com/entities/megaworld-corp" target="_blank" data-smartkarma-citation="entities:8746:1" rel="noopener">Megaworld Corp (MEG PM)</a>, one of the leading property developers in the Philippines. MREIT has won approval for an IPO in the Philippines to raise PHP23.7 billion ($471 million) through a secondary offering of 1,078.0 million units at a maximum price of PHP22.00 per unit. Pricing is set for 18 August and the offer period will run from 23 to 27 August. </p><div class="content-highlight"><p>MREIT currently owns 10 Grade A offices, hotels, retail and other buildings with an aggregate appraised value of PHP49,316.0 million ($1,017.5 million). The properties are in three major townships developed by Megaworld (the sponsor), which are Eastwood City, McKinley Hill and Iloilo Business Park. The properties have a large exposure to the business process outsourcing (BPO) sector - BPOs and traditional offices sector accounts for 89.9% of total GLA as of 31 March 2021. On balance, we believe that MREIT has attractive characteristics. We will discuss valuation in our next note.</p></div>

Megaworld Real Estate Investment Trust (MREIT PM)/MREIT is the flagship REIT platform of Megaworld Corp (MEG PM), one of the leading property developers in the Philippines. MREIT has won approval for an IPO in the Philippines to raise PHP23.7 billion ($471 million) through a secondary offering of 1,078.0 million units at a maximum price of PHP22.00 per unit. Pricing is set for 18 August and the offer period will run from 23 to 27 August. MREIT currently owns 10 Grade A offices, hotels, retail and other buildings with an aggregate appraised value of PHP49,316.0 million ($1,017.5 million). The properties are in three major townships developed by Megaworld (the sponsor), which are Eastwood City, McKinley Hill and Iloilo Business Park. The properties have a large exposure to the business process outsourcing (BPO) sector - BPOs and traditional offices sector accounts for 89.9% of total GLA as of 31 March 2021. On balance, we believe that MREIT has attractive characteristics. We will discuss valuation in our next note.

Megaworld REIT (MREIT) IPO: At the Front of the Back Office

Research from SooChow CSSD Capital Markets (Asia), SCCM Asia Research

SCCM Asia Research

Research from SooChow CSSD Capital Markets (Asia)

Thematic (Sector/Industry)

<h2>Singapore</h2><h3>SREITs results in a glance (see detailed spreadsheet and calendar attached)</h3><table class="table table-striped"><tbody><tr><td style="width: 141.25pt;"><p> </p></td><td style="width: 141.2pt;"><p>MCT</p></td></tr><tr><td style="width: 141.25pt;"><p>Period</p></td><td style="width: 141.2pt;"><p>1Q22</p></td></tr><tr><td style="width: 141.25pt;"><p>Gross Revenue (S$ m)</p></td><td style="width: 141.2pt;"><p>124.1 (+23.7% YoY)</p></td></tr><tr><td style="width: 141.25pt;"><p>NPI (S$ m)</p></td><td style="width: 141.2pt;"><p>96.9 (+22.9% YoY)</p></td></tr><tr><td style="width: 141.25pt;"><p>DPU (S$ c)</p></td><td style="width: 141.2pt;"><p>Not Disclosed</p></td></tr><tr><td style="width: 141.25pt;"><p>NAV per Unit (S$)</p></td><td style="width: 141.2pt;"><p>1.72 (Based on 2H21 NAV)</p></td></tr><tr><td style="width: 141.25pt;"><p>P/B (x)</p></td><td style="width: 141.2pt;"><p>1.24 (Based on 2H21 NAV)</p></td></tr><tr><td style="width: 141.25pt;"><p>Occupancy (%)</p></td><td style="width: 141.2pt;"><p>Portfolio: 95.4</p><p>VivoCity: 99.4</p></td></tr><tr><td style="width: 141.25pt;"><p>Reversion (%)</p></td><td style="width: 141.2pt;"><p>Not Disclosed</p></td></tr><tr><td style="width: 141.25pt;"><p>Gearing (%)</p></td><td style="width: 141.2pt;"><p>34.2</p></td></tr><tr><td style="width: 141.25pt;"><p>Cost of Debt (%)</p></td><td style="width: 141.2pt;"><p>2.44</p></td></tr><tr><td style="width: 141.25pt;"><p>1 Yr Fwd Yield (%)</p></td><td style="width: 141.2pt;"><p>4.49</p></td></tr><tr><td style="width: 141.25pt;"><p>Debt Hedged (%)</p></td><td style="width: 141.2pt;"><p>75.7%</p></td></tr><tr><td style="width: 141.25pt;"><p>Target Price</p></td><td style="width: 141.2pt;"><p>N/A</p></td></tr><tr><td style="width: 141.25pt;"><p>Rating</p></td><td style="width: 141.2pt;"><p>N/A</p></td></tr></tbody></table>

SingaporeSREITs results in a glance (see detailed spreadsheet and calendar attached) MCTPeriod1Q22Gross Revenue (S$ m)124.1 (+23.7% YoY)NPI (S$ m)96.9 (+22.9% YoY)DPU (S$ c)Not DisclosedNAV per Unit (S$)1.72 (Based on 2H21 NAV)P/B (x)1.24 (Based on 2H21 NAV)Occupancy (%)Portfolio: 95.4VivoCity: 99.4Reversion (%)Not DisclosedGearing (%)34.2Cost of Debt (%)2.441 Yr Fwd Yield (%)4.49Debt Hedged (%)75.7%Target PriceN/ARatingN/A

ASEAN Builder's Scoop (26Jul21) - MCT expects more rebates in 2Q22

Philippines

Filinvest REIT will own primarily office assets in the Philippines

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Filinvest REIT (FILRT PM)

RL Commerical REIT IPO Initiation: A Big One

RLC REIT has opened its books for a PSE IPO to $483 million. It has attractive characteristics and will be the largest PSE-listed REIT in terms of...

Arun George

Filinvest REIT IPO Trading - Set for Another Tepid Debut

Filinvest Reit (FILRT PM) (FREIT) raised around US$250m in its Philippines listing. The REIT is sponsored by Filinvest Land (FLI PM). FREIT’s...

Sumeet Singh

RL Commercial REIT Pre-IPO - Motley Crew of Assets Has Weathered COVID Well

RL Commercial REIT, sponsored by Robinsons Land Corporation, aims to raise up to US$491m in its Philippines listing. It will be a 100% secondary...

Sumeet Singh

Megaworld REIT (MREIT) IPO: At the Front of the Back Office

MREIT has won approval for a PSE IPO to raise PHP23.7 billion ($471 million). On balance, we believe that MREIT has attractive characteristics.

Arun George

ASEAN Builder's Scoop (26Jul21) - MCT expects more rebates in 2Q22

MCT expects more rebates in 2Q22; Pick suburban malls+industrial SREITs amid Phase 2; GUOL sets GLS record bid; 2Q21 office rents rising, retail...

SCCM Asia Research

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