Pan-Asia Catalysts/Events, Quiddity Advisors

Travis Lundy

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

<ul>
<li>3D Investment Partners launched a Partial Tender Offer to buy a 10+% stake in <a href="https://www.smartkarma.com/entities/hankyu-hanshin-reit-inc" target="_blank" data-smartkarma-citation="entities:12654:1" rel="noopener">Hankyu Hanshin REIT, Inc. (8977 JP)</a>. The REIT finally responded with a "Neutral" stance. </li>
<li>But they also upgraded earnings forecasts, bought a building, and announced the Sponsor would buy units in the market over the next year. It's big. </li>
<li>And that creates flows, which then engender other reactive flows, and cascading flows, and because the sector isn't rich, there may be a tailwind.</li>
</ul>


3D Investment Partners launched a Partial Tender Offer to buy a 10+% stake in Hankyu Hanshin REIT, Inc. (8977 JP). The REIT finally responded with a "Neutral" stance. 
But they also upgraded earnings forecasts, bought a building, and announced the Sponsor would buy units in the market over the next year. It's big. 
And that creates flows, which then engender other reactive flows, and cascading flows, and because the sector isn't rich, there may be a tailwind.


Hankyu Hanshin REIT (8977) - Good Fundamental News, a Bigly Buyback, and Cascading Flows to Come

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.

Equity Capital Markets

Japan Metropolitan Fund Investment Corporation / Equity Capital Markets

Japan Metropolitan Fund Investment Corporation (8953 JP)

Japan Metropolitan Fund Investment Corporation

<ul>
<li>
<a href="https://www.smartkarma.com/entities/japan-metropolitan-fund-investment-corporation" target="_blank" data-smartkarma-citation="entities:735:1" rel="noopener">Japan Metropolitan Fund Investment Corporation (8953 JP)</a> aims to raise around US$140m to partly fund the acquisition of four assets.</li>
<li>The deal will be relatively small, in terms of ADV and dilution.</li>
<li>In this note, we will talk about the placement and run the deal through our ECM framework.</li>
</ul>



Japan Metropolitan Fund Investment Corporation (8953 JP) aims to raise around US$140m to partly fund the acquisition of four assets.
The deal will be relatively small, in terms of ADV and dilution.
In this note, we will talk about the placement and run the deal through our ECM framework.


Japan Metropolitan Fund Placement - Relatively Small Deal to Digest

Invincible Investment / Equity Capital Markets

<ul>
<li>
<a href="https://www.smartkarma.com/entities/invincible-investment-corp" target="_blank" data-smartkarma-citation="entities:3617:1" rel="noopener">Invincible Investment (8963 JP)</a> plans to raise around US$230m to fund the acquisition of six hotel assets in Japan.</li>
<li>The stock has done well over the past year and so have most of its deals which we have covered in the past.</li>
<li>In this note, we talk about the deal dynamics and run the deal through our ECM framework.</li>
</ul>



Invincible Investment (8963 JP) plans to raise around US$230m to fund the acquisition of six hotel assets in Japan.
The stock has done well over the past year and so have most of its deals which we have covered in the past.
In this note, we talk about the deal dynamics and run the deal through our ECM framework.


Invincible Investment Corp Placement - Decent Accretion Despite the Large Dilution

Index Rebal/Special Situations, Quiddity Advisors

Janaghan Jeyakumar, CFA

Index Rebal/Special Situations

<div><p>On average, J-REITs have historically outperformed the TSEREIT Index in the wake of follow-on equity offerings, with win rates exceeding 80%.</p></div><div>
<p>While the offerings are mostly of interest to primary market investors, we also see such offerings as catalysts for strong secondary market performance making these events worth tracking for secondary market investors too. We have previously discussed the historical pre- and post-offering performance of JREITs in <a href="https://www.smartkarma.com/insights/j-reit-offering-primer-get-ready-for-offering-season-2021" target="_blank" data-smartkarma-citation="insights:46416" rel="noopener">J-REIT Offering Primer: Get Ready for Offering Season 2021</a>. In this insight, we evaluate the attractiveness of the latest candidate to launch such a follow-on equity offering - <a href="https://www.smartkarma.com/entities/hulic-reit-inc" target="_blank" data-smartkarma-citation="entities:3411:1" rel="noopener">Hulic Reit Inc (3295 JP)</a> - with greater emphasis on the potential for strong post-offering secondary market performance. </p>
<p><a href="https://www.smartkarma.com/entities/hulic-reit-inc" target="_blank" data-smartkarma-citation="entities:3411:1" rel="noopener">Hulic Reit Inc (3295 JP)</a> today announced a follow-on equity offering after market-close to fund part of their recent property acquisitions. The primary offer quantity is 82,800 units. In addition, there will also be an over-allotment quantity of 4,200 units. The total size of this offering could be roughly ¥14.6bn (~US$130mn). This is the second such follow-on offering this year, with a previous offering announced in March covered in <em><a href="https://www.smartkarma.com/insights/jreit-offering-hulic-reit-inc-3295-jp-take-it-vs-comps" target="_blank" data-smartkarma-citation="insights:49757" rel="noopener">JREIT Offering: Hulic Reit Inc (3295 JP) - Take It (Vs Comps)</a></em> at the time.</p>
<div><p><em>More below the fold. </em></p></div>
</div>

On average, J-REITs have historically outperformed the TSEREIT Index in the wake of follow-on equity offerings, with win rates exceeding 80%.
While the offerings are mostly of interest to primary market investors, we also see such offerings as catalysts for strong secondary market performance making these events worth tracking for secondary market investors too. We have previously discussed the historical pre- and post-offering performance of JREITs in J-REIT Offering Primer: Get Ready for Offering Season 2021. In this insight, we evaluate the attractiveness of the latest candidate to launch such a follow-on equity offering - Hulic Reit Inc (3295 JP) - with greater emphasis on the potential for strong post-offering secondary market performance. 
Hulic Reit Inc (3295 JP) today announced a follow-on equity offering after market-close to fund part of their recent property acquisitions. The primary offer quantity is 82,800 units. In addition, there will also be an over-allotment quantity of 4,200 units. The total size of this offering could be roughly ¥14.6bn (~US$130mn). This is the second such follow-on offering this year, with a previous offering announced in March covered in JREIT Offering: Hulic Reit Inc (3295 JP) - Take It (Vs Comps) at the time.
More below the fold. 


Hulic Reit (3295 JP): Offering Could Trigger Outperformance Vs Peers

<p>Last Friday after market close, small-cap JREIT <a href="https://www.smartkarma.com/entities/hulic-reit-inc" target="_blank" data-smartkarma-citation="entities:3411:1" rel="noopener">Hulic Reit Inc (3295 JP)</a> announced a fo<a href="https://www.hulic-reit.co.jp/file/en-news-3ba766fef9389cc1bc51ae39be5e8069adeffcf9.pdf" target="_blank" rel="noopener">llow-on equity offering</a> to fund part of their recent property acquisition. </p><p>The primary offer quantity is 39,000 units and there is also an over-allotment quantity of 2,000 units. The size of this offering could be around ¥6.7bn (~US$60mn).</p><div><p>The Offer Price will be determined between 1st April and 5th April (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. </p></div><div><p><em>More below the fold.</em></p></div>

Last Friday after market close, small-cap JREIT Hulic Reit Inc (3295 JP) announced a follow-on equity offering to fund part of their recent property acquisition. The primary offer quantity is 39,000 units and there is also an over-allotment quantity of 2,000 units. The size of this offering could be around ¥6.7bn (~US$60mn).The Offer Price will be determined between 1st April and 5th April (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. More below the fold.

JREIT Offering: Hulic Reit Inc (3295 JP) - Take It (Vs Comps)

Japan

Hulic Reit, Inc. is a real estate investment trust which mainly invests in real estate and securitized real estate products. The Company invests mainly in properties which are business offices, commercial buildings and nursing homes.

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Hulic Reit Inc (3295 JP)

Hankyu Hanshin REIT (8977) - Good Fundamental News, a Bigly Buyback, and Cascading Flows to Come

3DIP's Tender Offer for Hankyu Hanshin REIT is replaced by a Sponsor purchase over the next year of similar size (on the back of better earnings)....

Travis Lundy

Japan Metropolitan Fund Placement - Relatively Small Deal to Digest

Japan Metropolitan Fund Investment Corporation (8953 JP) aims to raise around US$140m to partly fund the acquisition of four assets.

Sumeet Singh

Invincible Investment Corp Placement - Decent Accretion Despite the Large Dilution

Invincible Investment plans to raise around US$230m to fund the acquisition of six hotel assets in Japan. In this note, we talk about the deal...

Sumeet Singh

Hulic Reit (3295 JP): Offering Could Trigger Outperformance Vs Peers

Small-cap diversified JREIT Hulic REIT launched a follow-on equity offering for JPY14.6bn (US$130mn) which could act as a catalyst to trigger...

Janaghan Jeyakumar, CFA

JREIT Offering: Hulic Reit Inc (3295 JP) - Take It (Vs Comps)

HULIC REIT - a smallcap diversified JREIT has launched a small offer to finance asset purchases. Secondary offerings have a good index-relative...

Janaghan Jeyakumar, CFA

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