Index Rebal/Special Situations, Quiddity Advisors

Janaghan Jeyakumar, CFA

Index Rebal/Special Situations

Quiddity Advisors

Pan-Asia Catalysts/Events

Event-Driven

<p>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> (<strong>"CRE"</strong>) announced a follow-on equity offering to fund their acquisition of three logistics properties. As discussed in <a href="https://www.smartkarma.com/insights/jreit-offering-cre-logistics-reit-3487-jp-take-it-vs-comps" target="_blank" data-smartkarma-citation="insights:46779" rel="noopener">JREIT Offering: CRE Logistics REIT (3487 JP) - Take It (Vs Comps)</a>, I advised being LONG vs comps from the Pricing Date (13th January 2021) and since then CRE logistics has gained +44.6%, outperforming its comps and the overall JREIT market by +9.1% and +18.7% respectively. </p><section class="figure"><figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/227/501/original/Last+Offering+Performance.png?1630569996" class="editor-image img-responsive" data-smartkarma-image-id="227501"></figure><div class="content-caption">Source: Quiddity [Data: Capital IQ]</div></section><p>Today after market close, CRE launched another follow-on equity offering. </p><p>This time, the total offer quantity will be 64,550 units and that means the total offer size would be around ¥13bn (~US$120mn) which is slightly larger than last time (~US$106mn) but still quite small in comparison to some of the other recent JREIT offerings. However, historically such follow-on equity offerings have acted as catalysts for strong secondary market performance in the weeks following the Pricing Date and in this insight, we will take a look at whether CRE has the potential to perform as well as it did last time. </p><p><em>More below the fold.</em> </p><hr><p><em>For a primer on J-REIT Offerings, their history, their patterns, etc, please refer to <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>.</em></p>

On 4th January 2021, Small-cap logistics JREIT CRE Logistics REIT (3487 JP) ("CRE") announced a follow-on equity offering to fund their acquisition of three logistics properties. As discussed in JREIT Offering: CRE Logistics REIT (3487 JP) - Take It (Vs Comps), I advised being LONG vs comps from the Pricing Date (13th January 2021) and since then CRE logistics has gained +44.6%, outperforming its comps and the overall JREIT market by +9.1% and +18.7% respectively. Source: Quiddity [Data: Capital IQ]Today after market close, CRE launched another follow-on equity offering. This time, the total offer quantity will be 64,550 units and that means the total offer size would be around ¥13bn (~US$120mn) which is slightly larger than last time (~US$106mn) but still quite small in comparison to some of the other recent JREIT offerings. However, historically such follow-on equity offerings have acted as catalysts for strong secondary market performance in the weeks following the Pricing Date and in this insight, we will take a look at whether CRE has the potential to perform as well as it did last time. More below the fold. For a primer on J-REIT Offerings, their history, their patterns, etc, please refer to J-REIT Offering Primer: Get Ready for Offering Season 2021.

CRE Logistics (3487 JP): Can They Do Better Than Last Time?

Equity Capital Markets

Mitsubishi Estate Logistics / Equity Capital Markets

<p>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. </p><p>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).</p><div><p>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. </p></div><div><p><em>More below the fold.</em></p></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

<p>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. </p><p>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). </p><p>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. </p>

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)

Advance Logistics Investment / Event-Driven

<p>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. </p>
<p>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. </p>
<p>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. </p>
<p><em>More below the fold. </em></p>

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

Mitsui Fudosan Logistics Park Inc (3471 JP)

<p><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.</p><div class="content-highlight"><p>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.</p></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

Advance Logistics Investment Corporation offers investment management services. The Company provides asset custody, money cashier management, investment consulting, and other services. Advance Logistics Investment also operates land management, infrastructure construction, tourism development, and other businesses.

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Advance Logistics Investment (3493 JP)

CRE Logistics (3487 JP): Can They Do Better Than Last Time?

CRE has launched a US$120mn equity offering to fund their recent property acquisition. Although CRE outperformed peers after their last offering,...

Janaghan Jeyakumar, CFA

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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