Index Rebal/Special Situations, Quiddity Advisors

Janaghan Jeyakumar, CFA

Index Rebal/Special Situations

Quiddity Advisors

Pan-Asia Catalysts/Events

Equity Capital Markets

Aeon Reit Investment / Equity Capital Markets

<p><a href="https://www.smartkarma.com/entities/aeon-reit-investment-corp" target="_blank" data-smartkarma-citation="entities:11010:1" rel="noopener">Aeon REIT Investment (3292 JP)</a> announced a <a href="https://www.aeon-jreit.co.jp/file/en-news-c4afa1361917d34d9433bbfa718f7d6ad5e1b5a6.pdf" target="_blank" rel="noopener">follow-on equity offering</a> after the close on 2nd August 2021 to fund part of their recent property acquisition.   </p><p>The primary offer quantity is 163,000 units. In addition, there will also be an over-allotment quantity of 8,150 units. The total size of this offering could be roughly ¥26bn (~US$230mn) which is slightly larger than some of the recent offerings by other JREITs. </p><div><p>The Offer Price will be determined between 11th August 2021 and 17th August 2021 (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>
<hr>
<p><em>For a primer on J-REIT Offerings, their history, their patterns, etc, please refer to <strong><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>.</strong></em></p>
</div>

Aeon REIT Investment (3292 JP) announced a follow-on equity offering after the close on 2nd August 2021 to fund part of their recent property acquisition.   The primary offer quantity is 163,000 units. In addition, there will also be an over-allotment quantity of 8,150 units. The total size of this offering could be roughly ¥26bn (~US$230mn) which is slightly larger than some of the recent offerings by other JREITs. The Offer Price will be determined between 11th August 2021 and 17th August 2021 (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.

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.


JREIT Offering: Aeon REIT (3292 JP) - Take It Vs Comps

ESCON Japan REIT Investment / Equity Capital Markets

<p>Last Friday after market-close, Small-cap Retail JREIT <a href="https://www.smartkarma.com/entities/escon-japan-reit-investment" target="_blank" data-smartkarma-citation="entities:28278:1" rel="noopener">Escon Japan Reit Investment (2971 JP)</a> launched a follow-on equity offering (<a href="https://www.escon-reit.jp/file/news-2bc2805fa9a725adcb1adeb58f551bf37b84f21e.pdf" target="_blank" rel="noopener">J-only</a>) to fund part of their recent property acquisition.</p><p>The primary offer quantity is 65,700 units and there is an over-allotment quantity of 3,285 units. The total size of the offering could be approximately ¥10bn (~US$94mn). </p><div><p>The Offer Price will be determined between 19th July and 27th July 2021 (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 Period. </p></div><div><p><em>More below the fold.</em></p></div>

Last Friday after market-close, Small-cap Retail JREIT Escon Japan Reit Investment (2971 JP) launched a follow-on equity offering (J-only) to fund part of their recent property acquisition.The primary offer quantity is 65,700 units and there is an over-allotment quantity of 3,285 units. The total size of the offering could be approximately ¥10bn (~US$94mn). The Offer Price will be determined between 19th July and 27th July 2021 (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 Period. More below the fold.

JREIT Offering: Escon Japan REIT (2971 JP)

Frontier Real Estate Invest / Equity Capital Markets

<p>Today after market-close, <a href="https://www.smartkarma.com/entities/frontier-real-estate-invest" target="_blank" data-smartkarma-citation="entities:13526:1" rel="noopener">Frontier Real Estate Invest (8964 JP)</a> ("FRI") launched a follow-on equity offering (<a href="https://ssl4.eir-parts.net/doc/8964/tdnet/1990785/00.pdf" target="_blank" rel="noopener">J-only</a>) to fund part of their recent property acquisition. </p><p>The primary offer quantity is 28,792 units and the over-allotment quantity is 1,440 units. The total size of the offering could be approximately ¥13.6bn (~US$124mn). </p><div><p>The Offer Price will be determined between 24th and 25th June (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>

Today after market-close, Frontier Real Estate Invest (8964 JP) ("FRI") launched a follow-on equity offering (J-only) to fund part of their recent property acquisition. The primary offer quantity is 28,792 units and the over-allotment quantity is 1,440 units. The total size of the offering could be approximately ¥13.6bn (~US$124mn). The Offer Price will be determined between 24th and 25th June (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: Frontier Real Estate Invest (8964 JP)

Pan-Asia Index Rebalances/ Events/ Delta One, Periscope Analytics

Brian Freitas

Pan-Asia Index Rebalances/ Events/ Delta One

Quantitative Analysis

<div><p>The Asia Short Interest weekly looks at moves in market wide short interest and highlights movements in stock specific short interest across Hong Kong, Japan, Korea and Taiwan using the last available data published by the relevant authorities.</p></div><div><p>Hong Kong saw shorts rise on <a href="https://www.smartkarma.com/entities/tencent-holdings-ltd" target="_blank" data-smartkarma-citation="entities:26:1" rel="noopener">Tencent Holdings (700 HK)</a>, <a href="https://www.smartkarma.com/entities/beijing-kuaishou-technology-co-ltd" target="_blank" data-smartkarma-citation="entities:29725:1" rel="noopener">Kuaishou Technology (1024 HK)</a>, <a href="https://www.smartkarma.com/entities/china-merchants-bank-co-ltd-3388a037-4214-4997-b45d-520518cfdb57" target="_blank" data-smartkarma-citation="entities:10987:1" rel="noopener">China Merchants Bank H (3968 HK)</a>, <a href="https://www.smartkarma.com/entities/jd-com-inc" target="_blank" data-smartkarma-citation="entities:29043:1" rel="noopener">JD.com Inc. (9618 HK)</a> and <a href="https://www.smartkarma.com/entities/gcl-poly-energy-holdings-limited" target="_blank" data-smartkarma-citation="entities:3708:1" rel="noopener">Gcl Poly Energy Holdings Limited (3800 HK)</a> while there was short covering on <a href="https://www.smartkarma.com/entities/alibaba-group" target="_blank" data-smartkarma-citation="entities:28434:1" rel="noopener">Alibaba Group (9988 HK)</a>, <a href="https://www.smartkarma.com/entities/china-pacific-insurance-group" target="_blank" data-smartkarma-citation="entities:6177:1" rel="noopener">China Pacific Insurance (2601 HK)</a>, <a href="https://www.smartkarma.com/entities/xiaomi-corp" target="_blank" data-smartkarma-citation="entities:24409:1" rel="noopener">Xiaomi Corp (1810 HK)</a>, <a href="https://www.smartkarma.com/entities/bank-of-china-ltd-h" target="_blank" data-smartkarma-citation="entities:656:1" rel="noopener">Bank Of China Ltd (H) (3988 HK)</a> and <a href="https://www.smartkarma.com/entities/kingdee-international-sftwr" target="_blank" data-smartkarma-citation="entities:37:1" rel="noopener">Kingdee International Software (268 HK)</a>. Shorts increased in almost all sectors, led by Financials, Communication Services, Consumer Discretionary, Health Care and Information Technology.</p></div><div><p>In Japan, stocks that saw the most shorts were <a href="https://www.smartkarma.com/entities/cyberagent-inc" target="_blank" data-smartkarma-citation="entities:8197:1" rel="noopener">CyberAgent Inc (4751 JP)</a>, <a href="https://www.smartkarma.com/entities/showa-denko-k-k" target="_blank" data-smartkarma-citation="entities:1496:1" rel="noopener">Showa Denko K.K. (4004 JP)</a>, <a href="https://www.smartkarma.com/entities/monex-group-inc" target="_blank" data-smartkarma-citation="entities:14211:1" rel="noopener">Monex Group Inc (8698 JP)</a> and <a href="https://www.smartkarma.com/entities/canon-inc" target="_blank" data-smartkarma-citation="entities:1:1" rel="noopener">Canon Inc (7751 JP)</a> while shorts decreased on <a href="https://www.smartkarma.com/entities/ryohin-keikaku-co-ltd" target="_blank" data-smartkarma-citation="entities:2765:1" rel="noopener">Ryohin Keikaku (7453 JP)</a>, <a href="https://www.smartkarma.com/entities/ricoh-company-ltd" target="_blank" data-smartkarma-citation="entities:15359:1" rel="noopener">Ricoh Company Ltd (7752 JP)</a>, <a href="https://www.smartkarma.com/entities/japan-retail-fund-investment" target="_blank" data-smartkarma-citation="entities:735:1" rel="noopener">Japan Retail Fund Investment (8953 JP)</a> and <a href="https://www.smartkarma.com/entities/toshiba-corp" target="_blank" data-smartkarma-citation="entities:637:1" rel="noopener">Toshiba Corp (6502 JP)</a>. Shorts increased in almost all sectors led by Industrials, Materials, Information Technology, Financials, and Communication Services, while decreasing only in Real Estate.</p></div><div><p>In Korea, short increased on <a href="https://www.smartkarma.com/entities/samsung-electronics-co-ltd" target="_blank" data-smartkarma-citation="entities:191:1" rel="noopener">Samsung Electronics (005930 KS)</a>, <a href="https://www.smartkarma.com/entities/samsung-sdi-co-ltd" target="_blank" data-smartkarma-citation="entities:503:1" rel="noopener">Samsung SDI (006400 KS)</a>, <a href="https://www.smartkarma.com/entities/naver-corp" target="_blank" data-smartkarma-citation="entities:16029:1" rel="noopener">Naver Corp (035420 KS)</a> and <a href="https://www.smartkarma.com/entities/celltrion-inc" target="_blank" data-smartkarma-citation="entities:991:1" rel="noopener">Celltrion Inc (068270 KS)</a> while shorts decreased on <a href="https://www.smartkarma.com/entities/iljin-materials-co-ltd" target="_blank" data-smartkarma-citation="entities:7709:1" rel="noopener">Iljin Materials (020150 KS)</a> and <a href="https://www.smartkarma.com/entities/doosan-infracore-co-ltd" target="_blank" data-smartkarma-citation="entities:3982:1" rel="noopener">Doosan Infracore (042670 KS)</a>.</p></div><div><p>Stocks in Taiwan that saw the highest increase in shorts were <a href="https://www.smartkarma.com/entities/united-microelectronics-corp" target="_blank" data-smartkarma-citation="entities:6450:1" rel="noopener">United Microelectronics Corp (2303 TT)</a>, <a href="https://www.smartkarma.com/entities/pegatron-corp" target="_blank" data-smartkarma-citation="entities:12852:1" rel="noopener">Pegatron Corp (4938 TT)</a>, <a href="https://www.smartkarma.com/entities/taiwan-semiconductor-manufacturing-company" target="_blank" data-smartkarma-citation="entities:11230:1" rel="noopener">TSMC (2330 TT)</a> and <a href="https://www.smartkarma.com/entities/macronix-international" target="_blank" data-smartkarma-citation="entities:3247:1" rel="noopener">Macronix International (2337 TT)</a> while shorts were covered on <a href="https://www.smartkarma.com/entities/au-optronics-corp" target="_blank" data-smartkarma-citation="entities:6704:1" rel="noopener">AU Optronics (2409 TT)</a>, <a href="https://www.smartkarma.com/entities/evergreen-marine-corp-ltd" target="_blank" data-smartkarma-citation="entities:15428:1" rel="noopener">Evergreen Marine Corp (2603 TT)</a>, <a href="https://www.smartkarma.com/entities/largan-precision-co-ltd" target="_blank" data-smartkarma-citation="entities:9126:1" rel="noopener">Largan Precision (3008 TT)</a> and <a href="https://www.smartkarma.com/entities/fitipower-integrated-tech" target="_blank" data-smartkarma-citation="entities:8712:1" rel="noopener">Fitipower Integrated Tech (4961 TT)</a>. </p></div>

The Asia Short Interest weekly looks at moves in market wide short interest and highlights movements in stock specific short interest across Hong Kong, Japan, Korea and Taiwan using the last available data published by the relevant authorities.Hong Kong saw shorts rise on Tencent Holdings (700 HK), Kuaishou Technology (1024 HK), China Merchants Bank H (3968 HK), JD.com Inc. (9618 HK) and Gcl Poly Energy Holdings Limited (3800 HK) while there was short covering on Alibaba Group (9988 HK), China Pacific Insurance (2601 HK), Xiaomi Corp (1810 HK), Bank Of China Ltd (H) (3988 HK) and Kingdee International Software (268 HK). Shorts increased in almost all sectors, led by Financials, Communication Services, Consumer Discretionary, Health Care and Information Technology.In Japan, stocks that saw the most shorts were CyberAgent Inc (4751 JP), Showa Denko K.K. (4004 JP), Monex Group Inc (8698 JP) and Canon Inc (7751 JP) while shorts decreased on Ryohin Keikaku (7453 JP), Ricoh Company Ltd (7752 JP), Japan Retail Fund Investment (8953 JP) and Toshiba Corp (6502 JP). Shorts increased in almost all sectors led by Industrials, Materials, Information Technology, Financials, and Communication Services, while decreasing only in Real Estate.In Korea, short increased on Samsung Electronics (005930 KS), Samsung SDI (006400 KS), Naver Corp (035420 KS) and Celltrion Inc (068270 KS) while shorts decreased on Iljin Materials (020150 KS) and Doosan Infracore (042670 KS).Stocks in Taiwan that saw the highest increase in shorts were United Microelectronics Corp (2303 TT), Pegatron Corp (4938 TT), TSMC (2330 TT) and Macronix International (2337 TT) while shorts were covered on AU Optronics (2409 TT), Evergreen Marine Corp (2603 TT), Largan Precision (3008 TT) and Fitipower Integrated Tech (4961 TT). 

Asia Short Interest: Kuaishou, CMB, JD, Kingdee, Xiaomi, Monex, Toshiba, Samsung, Naver, UMC, Largan

Event-Driven

<p>In 2020, we have so far witnessed 15 follow-on JREIT offerings cumulatively raising JPY463bn (~US$4.5bn). This has been something of a weak year, understandable because of the covid-19 crisis which hit equity market and JREIT prices in March, and keeping them soft for months afterwards.</p>
<p>Historically, January and February are the busiest months, for a variety of reasons.</p>
<p>From 2015-2020, on average, there have been ~7 offerings from the top 40 JREITs announced within the first two months of the calendar year accounting for roughly a third of the total number of offerings in each year during that period. </p>
<section class="figure">
<div class="content-caption">
<section class="figure">
<section class="figure">
<section class="figure">
<figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/179/233/original/Number%20of%20Historical%20Offerings%20by%20Calendar%20Month.png?1608207336" class="editor-image img-responsive" data-smartkarma-image-id="179233"></figure>
</section>
</section>
</section>
Source: Quiddity, Capital IQ (Data)</div>
In this insight, we take a look at the prospective candidates who are most likely to launch follow-on equity offerings near-term, and we look at the performance characteristics of J-REIT follow-on offerings and the likelihood of profit from participating in the event.</section>

In 2020, we have so far witnessed 15 follow-on JREIT offerings cumulatively raising JPY463bn (~US$4.5bn). This has been something of a weak year, understandable because of the covid-19 crisis which hit equity market and JREIT prices in March, and keeping them soft for months afterwards.
Historically, January and February are the busiest months, for a variety of reasons.
From 2015-2020, on average, there have been ~7 offerings from the top 40 JREITs announced within the first two months of the calendar year accounting for roughly a third of the total number of offerings in each year during that period. 









Source: Quiddity, Capital IQ (Data)
In this insight, we take a look at the prospective candidates who are most likely to launch follow-on equity offerings near-term, and we look at the performance characteristics of J-REIT follow-on offerings and the likelihood of profit from participating in the event.

J-REIT Offering Primer: Get Ready for Offering Season 2021

Japan

Japan Metropolitan Fund Investment Corporation operates real estate investment trust. The Company provides securitized real estate investment, real estate leasing, shopping centers investment, and other services. Japan Metropolitan Fund Investment provides its services throughout Japan.

Japan Metropolitan Fund Investment Corporation (8953 JP)

Japan Metropolitan Fund Investment Corporation

Price Gauge
52-week Range	0.00 - 0.00
Market Cap (USDm)	0.00
P/E	0.00
Dividend (Yield)	0.00

Japan Metropolitan Fund Investment Corporation (8953 JP)

JREIT Offering: Aeon REIT (3292 JP) - Take It Vs Comps

Aeon REIT (3292 JP) announced a follow-on equity offering on 2nd August 2021 to fund part of their recent property acquisition. The total size of...

Janaghan Jeyakumar, CFA

JREIT Offering: Escon Japan REIT (2971 JP)

Escon Japan REIT is doing its second secondary offering - the first came just before the covid crash. The retail sector is iffy. And Escon trades...

Janaghan Jeyakumar, CFA

JREIT Offering: Frontier Real Estate Invest (8964 JP)

Frontier REIT is coming out with its 6th ever secondary offering - this one to finance the purchase of buildings or stakes with an NOI yield below...

Janaghan Jeyakumar, CFA

Asia Short Interest: Kuaishou, CMB, JD, Kingdee, Xiaomi, Monex, Toshiba, Samsung, Naver, UMC, Largan

The Insight looks at large short interest movements across HK, Japan, Korea and Taiwan stocks and highlights large increases/decreases in shorts to...

Brian Freitas

J-REIT Offering Primer: Get Ready for Offering Season 2021

JREIT Follow-On Offerings - A Primer: January and February are the busiest times of the year for a variety of reasons and there are multiple...

Janaghan Jeyakumar, CFA

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)